Inclusion of Gambling Provisions in Brazil’s Enhanced Sports Betting Framework

Brazil’s Gambling Market Could Return Sooner Than Expected

Published: September 7, 2023, 07:44h. 

Last Updated: September 7, 2023, 07:44h.

There’s an exciting possibility that Brazil may reintroduce its gambling market sooner than anticipated. The inclusion of gambling in upcoming sports betting regulations has received support from Senate President Rodrigo Pacheco, but its implementation depends on the responsible conduct of sports betting operators.

Brazil President Luiz Inacio da Silva holding a Brazilian flag
Brazil President Luiz Inacio da Silva holding a Brazilian flag. The country is close to formalizing its sports betting regulations and may bring back casinos. (Image: Getty Images)

According to local media, the regulation of online sports betting is seen as a potential first step towards the legalization of gambling in Brazil. Senate President Rodrigo Pacheco views the regulation of sports betting as a test, and if successful, it could pave the way for the return of casinos and online gambling.

The Future of Gambling in Brazil

The future of gambling in Brazil remains uncertain, but there are positive signs from the new Minister of Tourism, Celso Sabino, and the Ministry of Finance. Both have expressed approval for the topic, with the Ministry of Finance ready to regulate the market if it becomes live.

Last week, Sabino stated in discussions with the media outlet Metrópoles that he sees legalized gambling as beneficial. When he was a deputy in the Chamber of Deputies over a year ago, he voted in favor of a bill on the subject approved by the chamber. However, the discussion is currently at a standstill in the Senate, showing no signs of revival.

The bill approved by the deputies would permit bingo halls, casinos, and other games, with operators required to meet certain criteria and undergo periodic inspections. Compliance with regulations and regular payments would be necessary to obtain a license.

Pacheco is using the sports betting discussion as a reference to gauge the Treasury’s response. Based on that information, he plans to revive the conversations in the Senate regarding the legalization of gambling, according to political sources.

Pressure from Arthur Lira, the president of the Chamber of Deputies, is urging Pacheco and the Senate to finalize the language for the sports betting framework. Lira hopes the chamber will respond and present its final version by this Friday.

This week, Brazil’s Ministry of Finance released an updated provisional sports betting measure that addresses regulations and taxes. While the rules are enforceable as law, they still require Congressional approval.

Brazil’s Continued Revenue Loss

While some gaming operators may not mind the absence of a regulated Brazilian market due to avoiding taxes, Brazil continues to lose millions in much-needed revenue. Recent research by Playtech reveals that 60% of Brazilians surveyed admitted to engaging in online gambling within the past six months. This represents significant lost revenue for Brazil over the past few years.

The necessity for market regulation and the establishment of a gambling system becomes increasingly apparent. Brazil has the potential to introduce the largest regulated gaming market in Latin America.

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