Brazil’s Fiscal Crisis Could be a Catalyst to Gambling Legalization

Brazil is in talks on gambling legalization during its worst fiscal crunch and the budget crisis could become a catalyst to a bill passing to finally regulate online gambling in the country.

Brazil is trying hard to overcome the financial crisis, and one way to do this could be to allow online gaming. The gambling regulation could finally pass to allow companies and casinos in the country for the first time in over 70 years. The Special Commision on National Development approved Bill 186 with 8 votes for and two against the regulation. The author of the bill is Ciro Nogueira, a big proponent for gambling reform in Brazil, and the new legislation has a lot to face before it can finally become law of the land, yet this step goes to the right direction.

Who’s Against and Who’s For the Gambling Law

The Senate Legislators have to approve the bill by a full vote and they should also receive approval from both President Rousseff Dilma and the lower house before putting it into action.

Truth us there is big reason for optimism, since these hurdles to climb get the gamling regulation pass the law can prove to be significant. Last summer, President Rousseff vetoed a Congress bill that could have legalized fixed-odd sports betting in the country.

Meanwhile, the website eGaming Review reported that the President introduced a legislation aimed at the approximately 8 million Brazilian gamblers who use offshore sites. According to those laws, players can get fines between £400 and £40,000 for using unlicensed websites.

Anyway, it seems that Rousseff changed her mind regarding the new gambling legislation, in a desperate way to bring much-needed funds into Brazil’s coffers due to the economic crisis.

Many close associates of President Rousseff state that the government is willing to introduce new national gambing legislations to support the country’s struggling economy.

Moreover, it is not the first time in Brazil’s recent history when politicans have tried to pass gambling legislation. Senator Noguiera attemped to introduce a bill in July 2014, but unsucessfully. He proposed to tax all types of gambling. Noguiera talked about how much the country needs the tax revenues.

”Studies show that, if introduced, the gambling and gaming market could potentially bring to Brazil’s coffers revenues of up to $15 billion (approximately $3.8 billion) per year,” Noguiera said.

The country was going through a financial crisis when this bill was introduced, and proponents of legal gambling hope that this extended crisis will bring better results this time.

Finally

Finally, we could say that this is a must-do for Brazil’s population right now. After all, since there are about 8 million Brazilian gamblers who use offshore websites, we could draw the conclustion that there is a large market out there. Since President Dilma Rousseff has made changes in the country’s budget this September, cutting a staggering $17 billion in spending, we bet that the new legislation to tax and regulate online gambling in Brazil will pass. One way or the other, the nation will accept that it needs the tax revenues.