The Brazilian voting public has spoken. Sunday evening saw the ousting of incumbent president Jair Bolsonero – albeit narrowly. Whilst the subject of the election result seems sure to dominate the news headlines for some time yet, in just a few months former leader Luiz Inácio Lula da Silva will step in for a third term in office.
The ramifications of this change are likely to be felt far and wide, but one area which can reasonably expect to benefit is that of the gambling industry. For whilst Brazilians are permitted to undertake financial investments such as those available at the top Forex sites, forward-thinking regulation surrounding the betting industry has been sadly lacking. The result is that Brazilians continue to bet in their droves, but almost exclusively with overseas online companies – bringing little net benefit to the Brazilian economy.
A Roadblock Removed?
Law 13,756/18 which deals with the legalization of fixed odds sports betting has now been on the shelf for some time. Initially set to be dealt with in 2020, that deadline was later extended to the 12th of December 2022 as the Bolsonero government dragged its heels on the issue. As that date now approaches, and with the gargantuan betting event of the FIFA World Cup 2022 almost upon us, the legislation still awaits the regulation of the Executive Power.
The general election was touted as the reason for the most recent delay in the proposed legislation being acted upon, as Bolsonero was keen to keep the large Evangelical cross-section of his support onside.
With Bolsonero now set to depart, it is anticipated that, whilst still wielding some power, the anti-gambling fraternity may not affect the ultimate vote of the senate to the same degree. Stakeholders in the gambling sector, and millions of Brazilian bettors, wait with bated breath, in the hope that the more progressive Lula with usher in a new era for the industry.
What Might Change Look Like?
Of course, a change of ruling party does not guarantee that the proposed legislation will be ratified – the decision will still rest with a vote in the chamber. However, should the much-delayed decision fall in favour of those who support the legislation, changes to the Brazilian betting landscape could include:
More land-based casinos:
Big Benefits from the Online Sector.
On the back of the Covid-19 pandemic and the expense of the general election, the new government may well be grateful for increased tax income. Regulation of the online gambling industry may be seen as one measure which could contribute towards that goal.
Brazilian-based online betting companies may still be a little way off, but effective regulation of the existing outflow of cash to overseas markets could provide many billions in additional revenue over the course of Lula’s impending term in office.
