A report commissioned by the Remote Gambling Association has estimated that Brazil’s online gambling market has the potential to be worth $2.1bn per year, if it were to be regulated properly.
The report was compiled by consulting firm, KPMG and was strategically released at a time when the legalisation of certain gambling services is starting to pick up some serious momentum within the Brazilian Government.
The news that Brazil’s online gaming market could be worth over $2bn must be music to the ears of many operators who have expressed interest in entering the extremely lucrative market.
In the report, KPMG stated that Brazil needed to implement a “sensible and effective” licensing regime, a taxation framework that is based on gross gambling revenue (and not on turnover as it is the case in several recently regulated jurisdictions), and the right measures for the socially responsible provision of online games and sports betting.
According to results posted by the Brazilian Legal Gaming Institute, underground and illegal gambling operations generate around $6.2bn every year.
For years, the legalisation of gambling services in the country has been discussed in both houses of the Brazilian National Congress. Several bills have been put forward but none of them have made a serious impact, due to some extreme opposition from a number of lawmakers.
It will be interesting to see whether or not these recently publicised results will have a substantial impact on the government’s debates and speed up the ongoing saga that lacks any resolution.