Through implementation of a new law that was enacted in late December, Brazil’s online gambling market is forecasted to generate US$3.7bn in year three of operations before rising to US$4.9bn by year five, finds Vixio’s ‘Brazil Online Outlook’ report, which is being released today as the ICE 2024 convention begins in London.
* Vixio’s ‘Brazil Online Outlook’ report can be downloaded here.
“The move late last year by Brazilian lawmakers to add online casino games to legislation for sports betting should enable Brazil to realise its potential as a major market on a global scale, with the country set to join the UK and Italy among the largest regulated online gambling jurisdictions in the world while surpassing the likes of Australia, France and New Jersey in the near-term,” said James Kilsby, Vixio’s chief analyst and a co-author of the report.
“That being said, the true size of the Brazilian market opportunity will hinge on a series of key policy decisions due to be made in the coming months, as government officials decide how to interpret various areas of the newly enacted legislation through upcoming regulatory ordinances,” Kilsby added.
As highlighted by the Vixio report, implementing regulations under Law 14.790 will be expected to clarify such critical issues as the range of online casino games permitted in Brazil, whether bonus offers will be allowed, whether international operators require a local investment partner, and how taxes will be applied to player winnings, among others. Each of those issues could materially affect the attractiveness of a market which will require companies to pay in excess of US$6m for a licence.
Along with revenue forecasts and analysis of pending policy issues, Vixio’s Brazil Online Outlook report also includes:
* A summary of the key provisions of Brazil’s new online gambling law
* Analysis of next steps in terms of regulation, licensing and compliance
* A view of the competitive landscape in Brazil’s regulated market
* Perspectives on advertising, lotteries and casino expansion
“Vixio has closely followed regulatory developments in Brazil for more than 15 years, and the online sector is rightly excited at the emergence of this major new market opportunity, especially after a series of false starts in terms of expansion of land-based casinos and bingo halls over recent years,” said Mike Woolfrey, Vixio’s CEO.
Woolfrey added: “Vixio has long been committed to providing industry-leading intelligence on emerging online gambling markets in Latin America and we look forward to demonstrating at ICE how our insights, reports, regulatory trackers, monitoring solutions and data forecasting tools from both our GamblingCompliance and PaymentsCompliance products will enable leading operators and suppliers to capitalise on regulatory developments in Brazil and beyond.”
ICE delegates will be able to obtain a copy of the Vixio report from stand N10-220 at the ExCel London convention and exhibition arena. The annual ICE convention opens on Tuesday, February 6 and runs through Thursday, February 8. Vixio will also host a Brazil-themed ‘Power Hour’ at stand N10-220 from 4-5pm on Tuesday and Wednesday.
Headquartered in London and with offices in Washington DC, Vixio is a Regulatory Technology (RegTech) company, and a trusted source of independent, authoritative and actionable regulatory intelligence for compliance, regulatory, strategy and development professionals in payments and gambling industries that undergo rapid and radical change.
Vixio delivers comprehensive, time-sensitive and actionable intelligence on payments and gambling compliance, covering more than 180 jurisdictions across the globe and organised by product or service type.
Source: GMB