New Brazilian gambling legislation introduced
Bill aims to adopt a European-style regulatory model and legalise online sports betting, casino and bingo products
A regulated Brazilian online gambling market inched closer yesterday after legislation seeking to legalise online sports betting, casino and bingo was presented to the country’s senate.
The Bill proposes to regulate almost all forms of gambling in order to closely monitor and tax online gambling activities, and allow companies to apply for a licence to operate.
Under the Bill licence applicants would have to demonstrate technical capacity, tax compliance and financial probity, with illegal operators facing fines and custodial sentences of up to one year.
While poker has not been included in the terminology of the bill, its legal standing as a skill game in the country means that it can already be played legally.
The Bill, PLS186/2014, was first drafted in May but presented to Brazil’s senate yesterday by Senator Ciro Nogueira, who spoke of the need to remove “clandestine” illegal betting in the country “and all of its evils”.
“The State itself carries out numerous forms of gambling. Why not legalise other forms? It’s necessary to move forward and create a regulatory framework for this activity,” Nogueira said.
Nogueira claimed the unregulated gambling market in Brazil was worth approximately US$18bn, and that legalising it could yield taxation substantial tax revenues which could be used to help fund health care, pension and social welfare costs.
The Bill has been submitted to the Committee on Regional Tourism Development, and is expected to pass to other committees and commissions in the country including the Economic Affairs Committee and the Committee on Constitution, Justice and Citizenship.
Brazil recently laid the groundwork for tighter controls over its online gambling market with the passing of a Bill that closed a loophole that had previously allowed international egaming firms to target Brazil-based customers.
Under Brazil’s constitution any contact undertaken online is subject to the laws of the jurisdiction where it has been actioned which, in online gambling’s case, is the location of the bet taker’s licence.
President Dilma Rousseff passed the Civil Landmark Bill of Law in April, which effectively closed the loophole by granting Brazilian judges the power to block access to any website deemed to be breaking the country’s laws.