Legislators in Brazil are debating a measure that could criminalize the transfer of funds from Brazilian players to gambling platforms based outside of the nation’s borders. Senator Ciro Nogueira, the bill’s sponsor, seeks to address a gap that is believed to result in the loss of hundreds of millions of dollars each year for Brazilians engaging in online wagering on international sites.
Although Brazilian businesses are prohibited from providing online gambling services, and the country generally bans most types of gambling, Nogueira’s proposal recognizes that the area’s inadequate online gaming regulatory structure is leading to millions in missed tax income flowing to entities not holding licenses to operate within Brazil.
The proposed legislation would mandate that Brazil’s Central Bank formulate regulations and procedures to prevent Brazilian consumers from utilizing credit or debit cards for placing wagers on offshore gambling platforms.
While this bill stops short of explicitly advocating for the legalization and regulation of online gambling within Brazil, it does suggest that such regulation should be implemented responsibly. This mirrors the ongoing discussion within the Brazilian government regarding the future of gambling in the country. Several legislative efforts have been made to legalize gambling, but to date, no tangible advancements have materialized. This lack of progress is worrisome, particularly given the sum of money Brazilians expend on gambling annually. As per data from the Brazilian Legal Gaming Institute, Brazilians spend…
Unlawful wagering in Brazil constitutes a substantial clandestine market, generating an estimated $40 billion yearly. This prohibited enterprise deprives the government of approximately $20 billion annually in missed gaming tax income.
Despite having a population exceeding 200 million, Brazil, with its potential to be a bonanza for legitimate gaming – possibly even Latin America’s largest market – faces uncertainty regarding the realization of this prospect. The essential regulatory structure remains mired in legislative deadlock, leaving nearly $55 billion reais untapped annually.
