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Could Gambling Regulation Save Brazil?
By Shane Addinall Jun 18, 2019 IndustryThe Brazilian economy could be set to rise from its ashes as Lawmakers consider regulating and licencing online and offline gambling to increase job production and revenue generation.Where Brazil leads Latin America follows! As the largest economic power in South America, not to mention one of the top 10 producers of goods and services in the world, Brazil has a lot of influence over its peers. However, the last decade has seen Brazil’s rising star plummet and finally, it appears local lawmakers are willing to set aside their prejudices and consider regulated online gambling and land-based gambling as a favourable solution to the country’s financial woes.
✓Setting The Stage For Change
In the early 2000's Brazil was the Cinderella of South America. Under former president Luiz Inacio Lula da Silva, or Lula, jobs were plentiful, domestic spending was up and they had settled the country’s debt with the International Monetary Fund! Even after making its final payment Brazil still had over $50 million in reserve! However, Lula would later be convicted of several crimes, what should have been his proud legacy ended in a jail term.
Dilma Rouseff took office in 2011 and through some poor, yet well-intentioned, economic decisions combined with a dramatic drop in the oil price, which is Brazil’s major export, sent the economy into a downward spiral. She would be impeached in 2016 under the guise of questionable fund management.
✓Brazilian Lawmakers Look To Regulation
A 2019 poll by the Paraná Research Institute, at the request of the Brazilian Legal Gaming Institute (Instituto de Jogo Legal), shows that there is growing support for regulation of Brazil’s online and offline gambling sector in the face of the countries mounting financial concerns.
It is natural that the success of the UK and even the tentative steps taken by the USA, with whom Brazil has a close relationship, would raise awareness of the value gambling licencing and taxation can bring to the Brazilian economy.
There are two bills before the government for consideration, PL 442/91 and PLS 186/2014, both of which ask the government to regulate land-based and online casino, bingo rooms and sports betting. It would also regulate the beloved, yet illegal, animal lottery game called Jogo Do Bicho ("the animal game").
✓How Close Is Brazil To Regulation?
Looking back at the results of the poll by Paraná Research Institute the voting leans heavily in favour of gambling regulation:
- 52.1% - In Favour
- 40.8% - Opposed
- 7.1% - Undecided
To put this in practical terms, the above 52.1% constitutes 238 Federal Deputies, in order to pass the bill it would need what is known as a “Simple Majority” which is set at 257 votes. The undecided voters alone hold approximately 32 votes which would pass the bill, then there are those who can be moved through further education or incentives for their local districts.
✓How Do the People Feel?
With the national enthusiasm for Jogo do Bicho, a game that is prohibited by federal law but has been played across the country since the 1920's, one would assume there would be a groundswell of support for regulated gambling however the stats don’t agree.
A late 2018 poll showed that only 45.6% of participants supported the introduction of licenced bingo halls and 45.7% were in favour of regulated casinos. The positive outlook on potential gambling regulation also found the strongest support among male respondents with 57.7% of men being pro-regulation, while only 34.1% of women wanted casino regulation.
✓How Would You Vote?
How likely do you think it is that Brazil will pass a bill that allows for the licencing of online casinos in 2019? And if you were part of the process how would you vote? Join the GamblersPick Community and let us know if gets a thumbs up or thumbs down from.
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