Gambling in Brazil has been banned for over 70 years, but it now appears that the government is looking into passing a bill for legalization.
In an effort to increase tax revenue, Brazil is now looking into the possibility of legalizing gambling. Gambling in Brazil was deemed illegal in 1941 as part of Brazil’s Criminal Contravention Act. Under these laws, only state lotteries, poker, and horse race betting are legal forms of gambling in the country.
It’s no surprise that this bill has created Brazilian gambling news. A number of major betting firm’s have commented on the reports, including UK-based bookmaker William Hill who said, “It would be one of the most significant events in gaming history if Brazil opens up to the gambling sector.”
Members of Brazil’s lower house and the senate are in the process of reviewing gambling legislative bills. Once congress can agree on a bill, it would only need a presidential sign-off to bet put into effect. This could be sped up if the president attempts to quickly create a gambling regulatory agency.
How will this affect Brazil’s economy?
The laws banning gambling in Brazil have created a massive illegal gaming industry in the country that is estimated to be worth over $3.7 billion a year. If the government can begin taxing gambling operators, they will likely receive massive amounts of revenue. One estimate states the gambling market of Brazil would be worth $16 billion annually.
It seems likely that foreign companies will control most of the casino industry in Brazil, while sportsbooks will be mostly controlled by local Brazilian companies. It has not been established how much money the government will tax gambling operators, but it seems likely to be in the world average of about 20-30%.
What do you think of the news that gambling in Brazil may soon become legal? Will this hurt or help their economy? Leave your comments below, and make sure to check out GamingZion’s online gambling sites in Brazil to find a full list of the best gambling websites you can access in Brazil.