The future of Brazil’s gambling market is set to be delayed once again as the country’s presidential election moves into a run-off at the end of October. [Image: Shutterstock.com]
The once imminent future of the gambling and sports betting markets in Brazil is now on alert as the country deals with the October elections.
He chose to put it aside until October passed
Legislative committees in the House and Senate reached an agreement earlier this year, apparently ending discussions that began in 2018. They put them aside until October passed and the country’s political climate settled.
The bills are still pending and will be presented to the president again once the elections are over.
stuck in limbo
Bolsonaro Already scored a win of some sort at the ballot box, exceeded expectations and prevented Luis Inacio Lula da Silva from achieving an outright victory, which led to a run-off election. Brazil has the world’s fourth largest democracy, and the impact of the elections will have a resounding effect no matter how it ends.
Despite Bolsonaro’s strong performance, prominent figures in the gambling industry were unenthusiastic and unsurprised with the move to delay gambling legislation.
“Believe me…this is a very Brazilian affair,” said FBM Digital Systems, a subsidiary of LatAm Group FBM Gaming, CEO and Brazilian-born Roberto Reggianini. “[Brazil] Follow[s] There is no conventional wisdom in their approach to launching.”
Another problem facing the Brazilian government is the lack of clarity in which direction it will choose. As Regianini reiterated, just because two frameworks are approved doesn’t mean either will be enacted – even if one is approved, it’s unclear which one is more likely as of today.
There are also concerns that any further delays could have major repercussions. According to Andreas Bardon, CEO and founder of KTO, a gaming group with offices in Asia, Europe and Latin America, Brazil should act immediately.
Regulations must be drawn up within a four-year period, otherwise Congress must restart the process.”
“The terms applied to both bills are that the regulations must be in place within a four-year period, or else Congress must resume the process,” Bardon said. “We really can’t afford to get that result.”
Bardon also noted that settling the future of gambling against the backdrop of a divisive general election “could have been avoided” but would be accepted as a necessary evil if it led to new legislation.
The future of gambling in Brazil
Brazil is expected to make huge gains if it succeeds in getting its gambling plans over the finish line. As mentioned earlier, it has the fourth largest democracy, as well as the ninth highest GDP, and it could redefine gambling in the region.
“In my opinion, lawmakers did not understand the opportunity of the online gambling market to reshape Brazil,” Bardon said. “It needs to be treated as an entirely new industry that can create new, high-paying jobs in customer service, technology, payments, and business intelligence… that’s what politicians’ campaigns say they want, and it needs to be delivered.”
It will take time to move into a new era that Bardon talks about. Although many countries are preparing for the World Cup betting towards the end of November, with Brazil considered the favorites to beat Kylian Mbappe and France, critics fear that Brazil will not be in place to create a stable gambling environment.
We recommend that lawmakers focus absolutely on the first quarter of next year.”
“Diameter [World Cup] “It’s unlikely that the launch will come,” said Regianini. “We recommend lawmakers to focus on launching Q1 next year, with time to meet all necessary licensing and regulatory requirements.”
The country is already under a regulatory review of partnerships between sports writers, sports teams and media providers. The move was prompted by concerns from the Secretaria Nacional do Consumidor (SENACON), which translated into the National Consumer Trust, which was agreed without federal approval to sponsor sports betting. So the next system of government will have this issue to deal with.
The Brazilian elections began on October 2 and will run until October 30, when the new president, vice president and national congress will be unveiled.