The potential revenue of Brazil’s iGaming sector could surpass US$2 billion each year if the nation implements suitable regulations for the industry. This projection comes from a recent study commissioned by the Remote Gambling Association, which indicates that a regulated market in Brazil could yield as much as US$2.1 billion annually.
Authored by the consulting firm KPMG, this study emerges amidst increasing pressure within the Brazilian government to legitimize gambling services. The revelation that Brazil’s internet gambling market could be valued at over US$2 billion will likely be well-received by the numerous operators who have shown interest in tapping into this potentially profitable market.
The study stresses the importance of Brazil establishing a “reasonable and efficient” licensing system, creating a tax structure based on gross gaming revenue (GGR) instead of turnover (unlike several recently regulated jurisdictions), and developing suitable responsible gaming measures for online gambling and sports wagering.
It is important to acknowledge that illicit gambling activities in Brazil already generate an estimated US$6.2 billion per year, as per the Brazilian Legal Gaming Institute.
Legalizing gambling services has been a subject of discussion in both chambers of Brazil’s National Congress for numerous years, but with minimal advancement. Several legislative proposals have been put forth, but none have gained significant traction due to substantial resistance from certain legislators.
The question of whether this fresh evidence will genuinely influence the administration’s discussions and ultimately bring closure to this protracted argument is still open.