Interactive

Brazil – Remote gambling could be worth US$2.1bn in Brazil

By Phil - 29 November 2017

At a time when the Brazilian Congress and Executive branch are working towards a competitive regulated online gaming market, a KPMG report commissioned by the Remote Gambling Association (RGA), estimates that the size of the market measured in terms of Gross Gaming Revenue (GGR) could be worth above R$6.7bn (US$2.1bn).

The RGA believes that the industry, local consumers as well as the government would greatly benefit from a well-regulated sector that would attract reputable operators, protect consumers and generate much needed tax revenues.

With a view to supporting the Brazilian Government’s anticipated efforts to regulate the sector, KPMG has produced a report analysing the potential impact of regulation and taxation of the country’s online gambling sector. The report concludes that a combination of responsible gambling measures, sensible and effective licensing requirements, and a workable taxation regime based on GGR would bring about the best possible outcome for all. Importantly it would also significantly reduce the size of the unregulated market which puts consumers at risk and operates beyond the reach of the Brazilian tax and legal authorities.

The RGA is the largest trade association representing the industry and is committed to promoting a regulated and non-discriminatory environment for responsible licensed operators in the world’s remote gambling markets. The RGA and its members are therefore very keen to co-operate with the Brazilian authorities, share the experiences of its members and bring international best practices to the market. It is the RGA’s view that an effective regulatory and tax regime could be implemented in Brazil in a relatively short period of time.

Clive Hawkswood, CEO of the RGA, stated that: “We have acquired valuable experience from a number of countries already regulating online gambling, most especially in Europe. The common theme in all those jurisdictions is a workable licensing regime open to international operators coupled with a GGR based tax model. We therefore strongly believe that if the Brazilian government follows these examples it will achieve sound public policy objectives”.