A report commissioned by international trade association Remote Gambling Association (RGA) has been published recently to reflect the potential billion-dollar market in Brazil, once systemized online gaming regulations are put into place.
The report was completed by auditor KPMG and estimates the potential size of the Brazilian iGaming market in terms of Gross Gaming Revenue (GGR). Published on November 21, the study found that Brazil could end up generating more than R$6.7 billion (US$2.1 billion) if the country’s online gaming market is regulated properly.
According to the KPMG report, sensible and effective licensing requirements, practical taxations, and responsible gaming measures will help structure a responsible gaming market and generate a major revenue stream for the country.
Currently, there is a sizeable unregulated online gambling market in Brazil that puts players at risk and operates without the approval of the government. The Brazilian Legal Gaming Institute (Instituto de Jogo Legal) estimates that around R$20 billion (US$6.2 billion) is generated from illegal gambling operations in the country each year. A sensible online gambling regulatory framework will put this unregulated market under watch and under tax schemes.
The RGA is a London and Brussels-based trade association with many international gaming operator members. It represents the online gambling industry and is in the forefront of lobbying for legalization and regulation of iGaming services in countries where no legal framework is still in place. Many of the operators associated with RGA have expressed interest in entering the promising Brazilian market once online gaming regulations are finalized.
Legalization of online gambling is tied to the bigger gambling legalization effort that’s still a battle yet to be decided in Brazil. For years now, two separate bills are being pushed at the two chambers of the country’s National Congress. Both bills are still in debate and up for voting.
While many Brazilian lawmakers are against online gambling legalization, the campaign to legalize online gambling continues to gain more public and political support. Local research firm Parana Pesquisas carried out a survey recently and published a report in September 2017. The report showed that 45.7 percent of surveyed Brazilian citizens said they are in favor of the legalization of casinos.
Earlier this year, Senate President Eunicio Oliveira has also promised to push for the inclusion of gambling regulation when the upper house meets for their plenary agenda. Oliveira pointed out that a regulated gambling industry could be the solution for the senate’s problem with additional tax revenue sources.