Brazil Working On Legal Online Gambling

Published Tuesday, November 15, 2016 - Online-Casinos.com
Brazil Working On Legal Online Gambling

South America is a very large jurisdiction with online gambling potential that hasn’t been legally tapped as yet. Brazil the largest country in the region and it is an example of a country that would benefit from the legalization of the activity by collecting taxes and license fees from operators.

The government of Brazil remains firmly against any form of online gambling and there have been three serious attempts at making internet betting illegal. In 2008 a legislative act similar to the American Internet Gambling Enforcement Act of 2006 was unsuccessfully tabled in the Brazilian congress. The next year, the government also asked ISP providers to block foreign gambling websites and online casinos. Another rejection by the government which concluded in 2010 when the government sought to ban credit card and other financial transactions regarding online betting activity to no avail.

Back in July of 2016 the Brazilian interim president Michel Temer’s administration considered the establishment  of a state-run sports gambling firm to generate funds for public needs. The sports betting online operator would then be privatised along with the Caixa Econômica Federal Bank's (Caixa) lottery, raising around R$ 8 billion (€1.2 billion/$ 2.4 billion) for the Brazilian Treasury.

Now bill that would introduce massive changes to the gambling market in Brazil has been approved by the Special Committee on National Development (CDEN). The CDEN approved the original version of the bill in December 2015, senators proposed 16 amendments that have been tabled with the changes. Regional restrictions in the new amended bill includes a requirement that as much as 40 percent of terrestrial casinos are to be built in the Central, Northeast, and North areas, while the national lottery operator Caixa Economica Federal, and its subsidiaries, will be granted a monopoly to offer online sports betting. Previous attempts at reform have been unsuccessful and the entire Senate of Brazil must approve the legislation for it to proceed to the next hurdle.

 

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