Brazil gambling law vetoed
Hopes that market would open up look forlorn as president strikes down reforms which had already passed through Congress
Major reforms to Brazil’s gambling laws which would have legalised sports betting in the country for the first time have been vetoed by President Dilma Rousseff.
The country’s Congress had passed legislation to introduce fixed-odds sports betting last month, which was expected to be rubber-stamped by Rousseff before entering into law.
However, eGaming Review understands that an intervention from the Ministry of Finance, which argued that it didn’t have time to regulate the new offering, persuaded Rousseff to block the move.
In an statement outlining the reasons for the veto, the government also cited concerns over a lack of measures designed to prevent a “negative social impact” from the new product.
According to gaming lawyer Luiz Felipe Maia, a partner at law firm Oliveira Ramos, Maia e Advogados Associados in São Paulo, it is still unclear whether the ministry is buying time or determined to block the legislation.
Maia added that efforts were underway to persuade Congress to overrule the veto, although described the attempt as a “difficult task”.
And in a further blow to operators, Rousseff did pass a separate piece of legislation which will increase penalties for the estimated eight million Brazilian gamblers using offshore sites. The laws give authorities the power to hand out fines to players ranging from £400 to £40,000 for using unlicensed sites.
Following the veto, Brazil is left with the same limited lottery and horse racing offer as before.