Once again, Brazil didn’t succeed in regulating its sports betting market. High hopes that gamblers and casinos fell when President Jair Bolsonaro refused to approve the gambling regulation.
The President refused to sign the bill that would open the door for the industry worth billions.
False hope for Brazil-based companies:
A former President, Michel Temer, 2018 signed a decree that gave the country two years to decide upon the regulation. This period could be extended for another two years, and the final date for approval was December 12 this year.
There were rumors that Congress would extend that deadline again, but the bill hasn’t been signed in the end.
The issue may be faced once again next year when Lula da Silva becomes the new President. His third mandate is starting on January 1t, and he stated multiple times that he would support the decision of Congress. Evangelical groups in Congress may try to avoid voting and passing the legislation on this matter.
The President against games of chance:
The current conservative President stated that he would approve the sports betting regulation. Still, he doesn’t agree with the games of chance because this regulation will likely be only the first step towards the country’s casinos and other types of gambling.
Conservative groups strongly believe gambling is immoral, while Bolsonaro said he wouldn’t accept any bill allowing legal gambling in the country.
In October, Bolsonaro spoke about this matter: “Sports betting is different from games of chance. In Brazil, if gambling is allowed, then there will be a problem. Slot machines cannot be legal.”
“In my opinion, there is a difference between bets and gambling. I think that Brazil is not yet mature enough to discuss this, but Congress has a mandate… as it stands, I will veto it.”
If the gambling market in Brazil gets approved, the profit would be enormous. H2 Gambling Capital announced that, since it’s a country with a vast population and great interest in sports, the country’s betting sector can be worth about $2.1bn by 2024 and even more in 2027 – $3.4bn.
Felipe Carreras, who prepared the bill, thinks that the legalization in Brazil can potentially earn up to $3.9bn in annual taxes. That’s not all – about 200.000 people will get the job, and another 450.000 will be formalized.
Differences between domestic and international companies:
Interestingly, international operators who already got their license somewhere else can operate in the country – but for the Brazil-based companies, these doors remain closed.
The only chance for domestic companies is the fixed-odds sports betting market since the plan to end Caixa’s lottery monopoly in Brazil is likely to be successful.
There is a law that has already been passed by Brazil’s legislature. The plan is to create a Health Lottery and Tourism Lottery, which will concentrate on retail and online gambling. It will help raise funds for the National Health Fund and the Brazilian Agency of International Tourism Promotion.