Brazil rethinks gambling agenda as recession looms

A month after stalling the progress of its review on regulated fixed-odds sports betting (Legislation – 671-2015), it appears that Brazilian lawmakers and congress are prepared to push for a nationwide gambling regulatory framework.

Faced with the nation’s worst economic recession in 25 years, Brazil’s central bank last week forecasted that its economy will shrink by 2.5-2.7%. The cash strapped Workers’ Party is further seeking to implement new economic strategies in order to help boost its dwindling cash reserves.

National news sources reported last week that Government Chief of Staff Aloizio Mercadante had returned to regulating gambling as lawmakers failed to pass numerous new tax policies through Congress.

Current Brazilian gambling legislation allows for wagering on land based lottery, bingo and licensed horse racing events on a state by state basis.

President Dilma Rousseff faced criticism as she was held personally responsible for the stalling of senate approved Legislation – 671-2015.

The legislation was reported to have aimed to implement policies for the potential regulating of online gambling/sports betting services which are becoming increasingly popular with Brazil’s consumers.

Critics argued that Rousseff and the Workers’ Party were never willing to tackle a contentious issue such as gambling and sports betting. Further highlighting that Rousseff and her advisors had been unwilling to declare provisions drawn out by Legislation – 671-2015.

Brazil’s pro-gambling advocates have stated that the government can no longer afford to forego an industry that could raise an estimated R$ 23.5 billion (£4 billion) in taxes.  

Criticism have further been pointed at current national gambling laws, which appear to no longer serve the modern consumers of the World’s seventh largest economy

However at present, the issue does divide public opinion as Brazil’s gambling history is littered with political corruption and sports betting/match fixing frauds.

Commentators noted that it would likely appear that Rousseff’s government facing its lowest public approval, would have a tough time convincing congress and the general public, that regulated gambling would be a positive initiative for Brazil.

Following many false starts to progress and debate gambling in Brazil, advocates and corporate stakeholders will be hoping that the Rousseff government begins a clear agenda on the matter, and that the latest calls are not another round of ‘easy rhetoric’ for a government that appears ‘out of ideas’ at policy level.