Gambling News

Brazil Introduce New Gambling Bill

- July 11, 2014 By Nemanja L. -

Brazil make an effort to regulate online gambling

Brazil Senate debating over online gambling bill.

While the whole country is lamenting over the embarrassing performance of the national team at the 2014 World Cup, Brazilian Government is making a serious effort to improve the country’s economy by finally regulating the online gambling websites.

Online gambling is currently illegal in Brazil, but Progressive Party Senator Ciro Nogueira has introduced project 186/2014 to the Senate designed to allow online sports betting, casinos, bingo and jogo de bicho throughout the 26 states.

The Senate is currently discussing the new legislation, while Nogueira has asked his peers to leave the demagoguery aside as he believes the positive aspects far outweigh the negatives. He is adamant that the gambling ban, in effect since 1946, did nothing to combat illegal betting as it is thought that the illegal gambling market is worth around $8 billion per year.

Nogueira has proposed a 10% tax on all gaming revenue, which would see 7% going to the federal government and the remaining 3% staying in the province where the operator is licensed. The Senator has suggested that new legislation should see the country earn some $6.75 billion per year in tax revenues.

With World Cup infrastructure costs going through the roof, Brazil has seen losses of $13 billion, and considering that the country is also hosting the 2016 Summer Olympics, any opportunity to improve the finances is likely to be welcomed.

Gambling in Brazil

Since 1946, gambling has been banned in Brazil, with lotto, horse racing, bingo and poker tournaments the only regulated forms of gaming in the country at the moment. Even so, many online operators allow the country’s residents to gamble online, although the Senate has made the first step in an attempt to regulate the online market by approving Marco Civil da Internet in April 2014.

The Law No 12.965 has ensured that all online financial transactions are subject to Brazilian law, giving the states the power to block all operators believed to be accepting wagers from the country residents.

Senator Ciro Nogueira seems to believe that the country’s economy will profit a great deal from a regulated online gambling market and Brazil Government do not seem to be in a position to pass up on a good opportunity to seriously increase their tax revenues.



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