Brazil has taken a significant step towards establishing a regulated online gambling market in 2024 with the approval of the controversial ‘betting project’ just before the year’s end. The bill, which sets a precedent for the country’s iGaming landscape, is now awaiting formal sanctioning by the President.
Background and Approval Process:
Originally approved in September, the bill faced additional scrutiny from the Senate, necessitating a second vote by the Chamber of Deputies this week. The Senate had voted to exclude iGaming from the bill, but the Chamber ultimately overruled this opposition, paving the way for the approval of the comprehensive legislation.
Components of the Bill:
The approved bill represents months of compromise and includes provisions for taxing both companies and bettors. Licensed operators will be subject to rules outlined in the legislation. Notably, companies are permitted to retain 88% of gross revenues, with the remaining 12% allocated to various sectors, including education, public safety, and sports.
Controversy and Criticisms:
The ruling has not been without controversy, as some critics argue that the regulation of gambling could have negative consequences. Deputy Eli Borges, an opponent of the bill, expressed concerns, stating, “We are taking another step forward to involve young people and Brazilian citizens in an unprecedented game.” This reflects apprehensions about the potential societal impact of regulated gambling.
Advocates for Regulation:
On the other side, proponents of the bill, including the President of the Chamber, Arthur Lira, emphasize the need for regulation to address existing unregulated platforms. Lira contends that the absence of regulation does not deter gambling activities, and managing the industry is crucial. He stated, “If we just don’t vote on regulation, will gaming cease to exist? Do people stop playing, bets stop working and sponsor teams, events and tournaments? No!”
Supporters argue that a regulated framework ensures oversight, taxation, and the establishment of clear rules for operators. Deputy Adolfo Viana, a supporter of the bill, emphasized the necessity for a law that definitively establishes inspection and taxation for betting sites. Without such regulation, games could continue without supervision.
Brazil’s approval of the ‘betting project’ signifies a pivotal moment in the country’s journey toward a regulated online gambling market. As the bill awaits the President’s sanction, the contrasting perspectives on its potential impact underscore the complexities surrounding gambling regulation. The coming year is poised to witness the unfolding of the regulatory framework and its implications for Brazil’s evolving iGaming landscape.