The Legalisation Outlook for Betting in Brazil with the Influence of The Pandemic

18 may 2020
Licensing, Betting
Author: James Burton
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Winter 2018 became a critical milestone for Brazil in the gambling business. After the adoption of a fundamental betting law, the sphere in the country has been going through a lengthy modifying process, trying to accustom to the new environment.

However, such unexpected global occurrences as the Coronavirus pandemic prevent the industry from moving its typical development path. Luckily, Brazil manages to maintain a positive progress rate and remains an attractive market for future operators.

Casino Market offers you to dive deeper into the steady development of the betting industry in the country and find out more about the possible obstacles, positive potentials, and rooms for progress.

Apart from theoretical knowledge, our proficient experts are always ready to provide you with all the necessary services for launching your own gambling business in this or any other region with guaranteed success.

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Why Brazilian Market is a Good Choice?

Betting industry in Brazil

There is quite a simple reason why the Brazilian market will still be a honeypot for the operators after the end of the international lockdown.

Just take a look at the numbers:

  • total population is 210 million people;
  • total number of existing phone subscriptions is 206 million;
  • the mobile penetration rate reaches 97%;
  • the total number of internet users is 150 million people.

These numbers allow the gambling operators to look at the Brazilian market with the unbearable expectation. The technological background is perfect for online betting here, so, it is just a matter of time when the local authorities finish all regular adjustments.

The local audience is also ready for the official implementation of online betting. 94% of Brazilians that are from 16 to 64 years old have a mobile device. Furthermore, 73% of internet users own a laptop or a PC. These people make up an average daily internet usage of almost 10 hours, underlining how important the World Wide Web is for the locals.

At the same time, the Brazilian market is not perfect in terms of betting prospects. The absence of efficient internet-based financial tools can become a severe obstacle unless solved before the complete legalisation. Just 33% of the inhabitants own a credit card. Moreover, only 18% of Brazilians conduct online purchases. At the same time, it is worth noting that these are some of the best readings among all Latin American countries.

«The local federal law is a significant advantage for many operators. Other countries have been working on this type of regulation for already several years. At the same time, Brazilian gambling-oriented operators are going to receive decent advantages from this that they are looking forward to obtaining»,

— mentions the chairman of BroBet about the form of regulation on the Brazilian gambling market.

What is the Current Progress of Completing Betting Regulation in Brazil?

Nowadays, the local authorities have paused the solution of a betting question for quite a logical reason. The international pandemic issue is much more urgent to deal with. That is why the gambling business, and the Brazilian economy in general, will face significant threats once the total lockdown is over. The gaming industry in specific will move towards the point of legalising betting alongside with defining the general gambling regulations when the time comes.

At the same time, even some authoritarians agree on the imminent legalisation of the betting sphere after the Coronavirus pandemic is over.

The president of the tourism commission in the Brazilian Chamber of Deputies confirms how essential it is to deal with this problem as soon as possible:

«One of the main urgent issues that require legalisation of sports betting is the severe decay of Brazilian football. A lot of local professional clubs had already had financial problems before the pandemic. Now, some of them are even on the verge of extinction».

Moving towards another thing that prevents the local government from legalising the industry straight away, it is essential to consider the interests of all citizens. Some religious groups are entirely against the idea of providing government support to betting and the gambling sphere as a whole. Therefore, the authorities have to find a happy medium that would satisfy all Brazilians.

What Regulatory and Licensing Framework Is Sports Betting Going to Follow?

Licensing framework for the sports betting

After the fundamental gambling law was adopted in December 2018, the Ministry of Economy offered three public examinations, gathering in total over 3,000 contributions from the stakeholders. As a result, it was concluded that the government needed to find the best existing betting-implementation model.

Such a decision was made since the Brazilian authorities have some major regulation issues regarding the two most demanded directions in the country:

  1. Federal lottery, working in Brazil since the 1960s.
  2. Bookmakers’ business, urgently needed to be offered on a legal basis.

The most significant challenge here is the inefficiency of combining betting and lottery due to the turnover and the GGR taxations inconsistency.

The technical manager at SECAP within a Ministry of Economy gives a further view on this issue:

«In 2020, we made a step back and defined a model of how we will deal with the public service of sports betting. It was necessary since the federal law was saying there must be a modulation of the concession based on the best possible practise».

How Do Operators Perceive the Brazilian Regulation of Online Betting?

The current forecasts that the local authorities give about the possible regulation period of betting are quite dim — 4 years for comprehensive legislation of the industry. However, experienced operators have another consideration of this aspect. Since the new laws will be implemented gradually, some arrangements can already be seen by 2021.

And again, the first obstacle that the government has to deal with is the increase in possible internet-based payment methods. They will allow broadening not only the gambling capabilities but also lifting the country to a whole new technological level.

The managing director at Betsson clears it out:

«The quicker the regulation question is to be resolved, the more benefit, from both authoritarian and operators’ side, will be received by all participants of the process».

Is There a Way to Enter the Brazilian Market Right Now?

Brazilian betting market

Regardless of the existing challenges in the form of betting legalisation stoppage due to the Coronavirus pandemic, new operators continue entering the local gambling market. The thing is that while you have paved your ground, you will be able to start making a profit and wait for further progress to happen. Luckily, the technological background allows consolidating a hold in the country in the long term.

Moreover, with professional support from Casino Market, you will have no problems obtaining a profitable internet-based facility on the premises of the country. Our experts will gladly offer you a convenient turnkey online casino solution that will guarantee a cost-effective platform at the end of the organizational process.

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On top of that, you will receive an extensive guide on the critical Brazilian peculiarities that include:

  • the technological development of the country’s population;
  • the reasoning of why the local sport will only benefit from legalising betting;
  • the influence of lottery on regulating the betting sphere;
  • the operators’ view on the legislative issue and the way they may escalate the betting regulation process.

In order to receive high-quality assistance from Casino Market, you should contact our support team by one of the preferable reaching means and clear out the issues that might interest you.

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  • Skype: support.casinosupermarket
  • the feedback form.
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