Brazil’s Push for Sports Betting Could Catalyze Wider Gambling Growth Amid Lobbying Struggles

The government introduced a provisional measure for sports betting in July, but this emergency legislation must be ratified by Congress within 120 days. Lawmakers are considering amendments and modifications to this measure, with the possibility of incorporating other forms of gambling. This move is supported by influential figures, including Chamber Speaker Arthur Lira, who has already championed a bill allowing land-based casinos and online gaming.

The potential scenario involves merging provisions from the provisional sports betting measure with a broader gambling bill introduced by the government. This combination could expedite the legislative process and leverage Congress’s power to make amendments. Although the current focus is on sports betting, the broader gambling bill could generate significantly more tax revenue. While legal sports betting is projected to raise around $400 million annually, incorporating other forms of gambling could increase this total to over $25 billion annually.

The path forward remains uncertain, with discussions ongoing about how to proceed. While the provisional measure is an option, there is speculation that its language might be integrated into the broader gambling bill. This shift would give more authority to Congress and allow for a thorough review of the legislation. Despite these deliberations, the sports betting industry is already advocating for changes to proposed regulations, such as a lower tax rate to encourage participation and prevent operators from staying in unregulated offshore markets. The debate also extends to potential restrictions on bet types and advertising regulations.

As discussions unfold, industry representatives are set to address these matters at a congressional hearing, emphasizing the complex and evolving landscape of Brazil’s gambling expansion.