Brazil Moving Forward with Online Gambling Legislation

The Brazilian government was presented with comprehensive legislation seeking to legalise online sports betting, casino and bingo to the country’s senate.

National Regulation and Licensing System Proposed

The Brazilian Bill would regulate (legalize) most all forms of gambling with the intent of effectively monitoring and taxing as much online gambling activity as possible. The proposal also includes the measure by which gambling operators could apply for licencing to enter the Brazilian market.

The Bill would require licence applicants to show sufficient technical capacity, adequate tax compliance and financial viability. The Bill also addresses the penalties for illegal operation, which would include up to one year of custodial sentence in addition to fines.

Expanding Government Benefits for Online Gambling

Brazil Senator Ciro Nogueira claims the unregulated gambling market in Brazil is already worth approximately US$18bn; legalising it would clearly yield significant tax revenues which could be used to fund social investment.

Channels of Passage

The Bill is under review with Brazil's Committee on Regional Tourism Development. Other committees and commissions it subsequently must pass through including the Economic Affairs Committee and the Committee on Constitution, Justice and Citizenship.

Movement to Update Gambling Legislation

The Brazil Senate has already begun tightening control over its gambling market by passing a Bill eliminating a legal loophole that had enabled foreign egaming firms to reach Brazilian customers.

Common to pre-internet legal language, any commercial contact initiated online was subject to the laws of the jurisdiction where the business was opened, rendering the location where the bet taker was licensed as the governing jurisdiction for online betting operators.

Loophole Corrected

Under Brazil’s constitution any contact undertaken online is subject to the laws of the jurisdiction where it has been sanctioned which, in online gambling’s case, is the location of the bet taker’s licence. However, in April, President Dilma Rousseff passed the Civil Landmark Bill of Law in April, empowering Brazilian judges to summarily block access to website's they found in violation of the country's national laws.

This is significant step towards eventual widespread online gambling legislation across the entire continent of South America.