Brazil Gambling Market
And with a population of 210 million with a clear propensity for gambling, a huge sporting culture, and a regulatory rehaul for the local iGaming market on the horizon, many leading industry experts deem Brazil to have all it takes to establish itself as the leading market in the region, and one of the biggest from a global perspective. Brazil’s former president, Michel Temer, signed off on sports gambling in December 2018 when he approved a bill, PM 846, that had been supported by both the Chamber of Deputies and the Senate. With two of the top names in the sports’ history, an obvious first-tier gambling market in Brazil is soccer – or futbol, as they call it. Other significant outlets include lottery games (particularly one by the name of Jogo de bicho), horse and dog (yes!) racing, and, recently, poker. Stats, Facts and Figures. The Brazilian market has considerable room for growth: it is the world's third largest in number of players, but lags in terms of revenues, which stood a US$1.5bn last year. Your Guide to the World's Best Online Gambling Sites. OnlineGambling.com is one of the leading experts in sports betting, online casinos, and real money poker.Our team provides up-to-date news and sports coverage, online gambling tips and how-to guides, as well as comprehensive casino and sportsbook reviews with the best odds and the biggest bonuses.
Many Latin American countries are currently toying with the idea of legalizing gambling for the very first time, or regulating their online gambling markets in order to provide better protection and freedoms for their citizens. While the potential for the gambling industry is great across much of Central and South America, Brazil could prove to be a particularly profitable country for the gambling industry.
Currently, gambling is almost completely illegal in the vast country of 207.8 million people, and has been since the 1940s. While Brazilian lawmakers have been trying to bring back casino gambling and other forms of gambling for more than 25 years, the country now finally seems to be on the verge of doing so successfully. As gambling analyst Alexandre Fonseca commented last year:
“If you ask me what are the odds of Brazil becoming a global gaming destination within the next five to 10 years, I would say they are quite high.”
Bill PLS 186/2014
The National Congress, the legislative body in Brazil, has been hard at work proposing legislation to expand gambling in the country. The Senate has drafted one especially promising bill, PLS 186/2014, which would allow for land-based and online casinos to open for business in Brazil under licenses issued by the government. In addition, the law would legalize bingo halls, sports betting parlors and a popular lottery style game called jogo do bicho.
According to the original version of the bill, the government would issue a total of 35 casino licenses with a maximum of 70,000 slot machines throughout the country, with all licensees required to offer restaurants and retail stores, in addition to their gambling facilities. Bingo halls would also be permitted at a ratio of one license per every 150,000 people in any particular city or municipality, while internet gambling would be legalized, regulated, and taxed accordingly.
Brazil Gambling Market Size
PLS 186/2014 received plenty of attention during 2016 when lawmakers openly debated it on the floor of the Senate, with the Special Committee for National Development eventually passing the bill. However, it was never brought to a full vote in the Brazilian Senate, and unfortunately, 2016 closed out without the bill becoming law, meaning that Brazil will need to start fresh in 2017.
Considerable Opposition
Those familiar with politics in the country report that while there is major support for legalizing gambling, there is also considerable opposition. Some lawmakers argue that legalizing gambling would only lead to people who are already living in poverty falling deeper into despair and that incidences in gambling addiction would increase to unbearable levels.
“It’s very easy to think about taxes going to the public coffers. It’s forgetting how many families will lose, will be destroyed by those who.. take everything they have and play at the casinos,” warns Congress member Pastor Francisco Eurico da Silva.
These arguments are familiar and have been heard time and time again while other countries have moved forward with gambling regulation laws.
$17.6 Billion Industry
Currently, it is believed that Brazilians spend more than $6.4 billion on illegal gambling every year. Legalizing gambling in Brazil would mean that this money was fairly taxed and that national and local governments would have a steady source of revenue to support social programs and fund other line items in their budgets. This would be a major win for the country that has been financially strapped for some time.
Industry analysts believe that once gambling is regulated and legalized, Brazilians could potentially spend $17.6 billion on gambling every year. With Rio de Janeiro being a major vacation destination, tourist dollars would boost that figure even further. With over 200 million people in Brazil, legalization would make it the largest regulated gambling jurisdiction in the world. Sports betting would likely be one of the most popular forms of gambling due to the country’s love for soccer; however, industry analysts think that casinos could also do well in many parts of the country.
The industry would also help provide employment for tens of thousands of Brazilians across the country, as back in 1946 when the industry was shut down around 40,000 Brazilians suddenly found themselves without work. Furthermore, money spent by Brazilians would stay within their own country, rather than in places such as neighboring Argentina which has been a major beneficiary of Brazil’s lack of gambling legislation.
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A post by Peter Murray, Head of Gaming at GBG.
Brazil Online Gambling Market
Two things struck me when I attended the Brazilian Gaming Congress (BGC) in Brasilia this month. The first is obvious, in that Brazil has a long tradition of sporting pre-eminence of which they are extremely proud. The second is that alongside this sits an ingrained fondness for gambling. 45% of the nation's 200 million people have internet connectivity, and if you do the flimsiest bit of research on their game of choice, Jogo Do Bicho, then you will realise that Brazilians like to bet!
In 1946 the Government banned the vast majority of gambling but, just as their love of football does not disappear with a rare humbling defeat, Brazilian’s love of a ‘punt’ did not stop just because the Government of the day dictated it so. As history has proven time and time again, if you introduce prohibition then the activity simply moves elsewhere.
Brazil Gambling Market Size
To prove that point, recent figures show that approximately 200,000 Brazilian punters leave their borders each month to mix a bit of gambling into their leisure-time activities.
The Government has also calculated that 100 overseas operators are currently taking $3 billion from the Brazilian economy, and with a regulated market valued at $16.8 billion then there is clearly an issue to address.
Understandably the Government has had enough of potential tax revenues disappearing into someone else’s pocket, and with an economy in need of an injection of support it looks like gambling is firmly back on the agenda. Even with the country's long history of political volatility, and their recent impeachment of their president on a charge of creative accountancy, there seems to be broad consensus towards acting sooner rather than later.
Bills are on the table, and Government officials from all sides seem to be demonstrating a willingness to cooperate to get a result. Whatever form of regulation does materialise however, there's one thing that's clear: player protection and anti-fraud measures are top of the agenda. Governmental distrust of the sector is based on a well-founded perception that gambling was previously a hub for illegal money laundering, so addressing these concerns whilst ensuring players are protected will be fundamental to any laws finally coming onto the statute books.
As with all regulation it will not be straight-forward (this is a country that jailed the owners of bingo parlours after all), but for those recognised online operators who currently accommodate Brazilian players in the ‘grey’ market, it may be time to sit up and take notice.
With regulation looming, now might be the time to prepare for the future and to look at the landscape post regulation and address likely requirements when it comes to player protection.
The next step is to evaluate whether the wider region will take Brazil’s lead - with so much change in store it’s a safe bet to assume Latin America is one of the markets to keep an eye on.
To discuss the future of gaming regulation in Brazil, or for advice on ensuring your company's compliance, please contact enquiries@gbgplc.com.