The legislation proposal, going under the working name PLS 186/2014, covers numerous gaming aspects like brick and mortar casinos, horse racing, bingo, and sports betting. The bill would even legalize internet gaming, which could have a huge potential impact on the country’s economy.
However, other than general provisions, the bill doesn’t provide too many details. Unlike more elaborate gambling laws in the States or European countries, PLS 186/2014 doesn’t account for the number of casinos that would be licensed to operate in the country nor does it cover specific types of online gambling which would be encompassed.
Even with all these lacking points, the legislation proposal represents a crucial development for the country. This is not only the issue of civil freedoms and what people should or shouldn’t be allowed to do with their money, as gaming bill could have a tremendously positive effect on the country’s budget.
Brazil’s Struggling Economy
Things haven’t been kind on the economy of Brazil lately. The expected deficit at the end of the year stands to be $5.5 billion. This was caused by problems in the oil production industry and shortening spending power of the middle class.
The 2016 Summer Olympics didn’t help, either. The country went well out of the expected budget framework for the Olympics, exceeding allocated funds by more than 50%. The total expenditure of more than $4.5 billion created a hole in the country’s budget which Brazil’s officials are struggling to patch.
Regulated Gambling as a Solution?
The economic situation in Brazil hasn’t been this troublesome in more than two decades, as the country experienced significant growth between the 1990s and 2010. However, now they need a quick financial fix to help them out of the hole. Legalized gambling might just be the solution they are looking for.
According to some estimates, tax revenues from legal gambling in Brazil could easily amount to around $3 billion a year, which is more than half of the expected deficit. Certain experts also stated that had Brazil moved to legalize gambling before the Rio Olympic Games, the country could have pulled in much more money during the sports spectacle.
With a population of more than 200 million, Brazil’s inclusion to the online gambling market would also be very significant for bookmakers and online casinos across the globe. According to one of the largest UK bookies, William Hill, Brazil gambling legislation would be one of the most important events in the history of online gaming.