Brazil’s Online Gambling Estimated at $2.1 Billion per Year

Brazil has had a casino gambling ban in place for the past 70-years, but recently the country has been exploring the possibility of legalizing the industry in order to raise much-needed tax revenues, and help plug the country’s budget deficit.

Meanwhile, Brazil has been assessing how much a potential industry would be worth in the event of legalisation, with a recent report produced by consulting company KPMG stating that a regulated online gambling market alone would generate in excess of R$6.7 billion (US$2.1bn) per annum.

The study was commissioned by RGA, an international trade association representing the interests of online gambling operators around the world, many of whom in the past have expressed a keen interest for one day doing business in the country.

As well as forecasting possible revenues, the KPMG report also highlighted the ways in which Brazil could ultimately set up a lucrative and smoothly functioning gambling market, including through introducing a “sensible and effective” licensing framework, a taxation regime based upon gross gambling revenue (GGR), instead of turnover, and an effective program for ensuring socially responsible gambling for online games.

A further benefit of legalization, according to the report, is that it would help reduce the level of illegal gambling currently taking place in the vast country, which the Brazilian Legal Gaming Institute believes to amount to around
R$20 billion ($6.2bn) per year.

Unfortunately, past efforts to advance gambling legislation in Brazil has encountered fierce opposition from lawmakers in both houses. Nevertheless, Senate President Eunício Oliveira has pledged to continue pursuing the agenda, and this year said he would include it in the plenary session of the Congress’ upper house.

In addition, a number of Brazilian lawmakers under the leadership of Deputy César Halum have formed an organization called the Parliamentary Front for the Legalization of Gaming in order to lobby for the advancement of regulated gambling within Brazil’s borders. The group has also received the support of several major established gambling operators, including the likes of Las Vegas Sands and Caesars Entertainment Corp.