Brazil Mulling Over Online Gambling Laws Again

Published Wednesday, July 13, 2016 - Online-Casinos.com
Brazil Mulling Over Online Gambling Laws Again

Financially the South American giant Brazil is struggling and is seeking ways to stem its fiscal slide. Brazil’s economy lingered in a deep recession in the first quarter of 2016 as high unemployment and political turmoil hit the domestic economy hard. The introduction of legal online gambling has been suggested by the interim president of Brazil who plans to form a state-run online sports betting entity that will  be privatized eventually along with Brazil’s instant lottery offering.

The economy has been fighting a slippery slope that could be stemmed somewhat with revenue generated by taxes and licensing fees from the international online gambling industry but that may not be the intention of the suggested proposal. Interim President Michel Temer has made some steps forward with reform legislation, but whether he has the support needed to pass bills through Brazil’s divided Congress is another story all together. Brazil has been attempting to pass legislation that could allow terrestrial casinos to offer online betting on sports as well as the state run lottery and other gambling venues to be available via the internet. All attempts have failed to result in any change in the law regarding internet betting so with the Interim President Temer even suggesting there could be legal online gambling ithas given some hope to Brazilian punters.

Media outlet Folha de S. Paulo reported that Temer’s plan reveals that the sale of a monopoly online gambling license to operate could make the government of Brazil over BRL 4b (US $1.2b), really too much for any one operator to pay. The suggested duration of the concession could last as long as 10 or 20 years, with the price increasing with the duration. The privatization of Lotex, the instant lottery scratch card business is said to possibly earn the government another BRL 4b (US $1.2b).

 

 

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