The upcoming launch of a regulated online gambling market in Brazil is expected to generate approximately $5 billion in annual revenue, according to estimates from business intelligence provider Vixio Regulatory Intelligence.
The Brazil Online Outlook report forecasts that the online gambling industry in Brazil will rapidly reach its maximum capacity, reaching $3.7 billion in revenue within three years of its launch, before rising to $4.9 billion by the market’s fifth anniversary.
Brazil’s draft law Pl3626/23 was reviewed multiple times by the Senate and Chamber of Deputies late last year before finally being signed into law by President Lula da Silva. The initial vote was delayed in late November due to concerns about the adequacy of the framework governing online gambling.
The federal betting bill was reintroduced in the Senate on December 13, but returned to the Chamber of Deputies for a second time due to disagreement over the inclusion of online casinos. Liberal Party senators opposed the proposal.
The decision to include conditions for regulating online casino games was made for the third time, with a majority of 261 MPs supporting the decision, while 120 were against it. The bill was then approved and signed by the President of Brazil, becoming federal law.
James Kilsby, Vixio’s Chief Analyst, expressed: “The move late last year by Brazilian lawmakers to add online casino games to legislation for sports betting should enable Brazil to realize its potential as a major market on a global scale, with the country set to join the UK and Italy among the largest regulated online gambling jurisdictions in the world while surpassing the likes of Australia, France and New Jersey in the near-term. That being said, the true size of the Brazilian market opportunity will hinge on a series of key policy decisions due to be made in the coming months, as government officials decide how to interpret various areas of the newly enacted legislation through upcoming regulatory ordinances.”
The Vixio report, which Kilsby co-authored, notes that there are some important aspects of the Brazilian online gaming market that have yet to be clarified. This includes allowing bonus offers, the presence of international operators in the country, as well as tax issues related to player winnings.
Mike Woolfrey, Vixio’s CEO, said: “Vixio has closely followed regulatory developments in Brazil for more than 15 years, and the online sector is rightly excited at the emergence of this major new market opportunity, especially after a series of false starts in terms of expansion of land-based casinos and bingo halls over recent years.”
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