- KPMG estimates that a regulated gambling industry could earn $2.1 billion annually
- Illegal gambling currently produces $6.2 billion
Brazil’s gambling industry could generate billions of dollars if it were regulated, according to a report commissioned by a leading gambling organization.
Currently, gambling in the country is restricted to horse racing and lotteries, but the report, which was carried out by consulting company KPMG on behalf of the Remote Gambling Association, estimated that if the nation’s online gambling industry was legalized and properly regulated, it would have the potential to be valued at $2.1 billion a year.
The release of this report is well-timed as the issue of legalizing some types of gambling in Brazil is beginning to be seriously considered in Brazilian political circles, including among members of the government. The figure of $2 billion is likely to encourage a number of gambling operators who have long seen Brazil as a potentially lucrative gambling market.
Gross gambling revenue
In addition to estimating the possible revenue from a regulated online gambling industry, the report by KPMG set out a number of measures that could ensure the success of legalization, including the creation of a sensible and effective system of licensing, a taxation regime built around gross gambling revenue rather than gambling turnover and robust regulations to ensure that the online gambling industry operates in a socially responsible way.
Although no exact figure can be calculated, according to the Brazilian Legal Gaming Institute, the revenue generated by illegal gambling in Brazil amounts to roughly $6.2 billion each year. The issue of the legalization of gambling has been regularly debated in the Brazilian National Congress and representatives have put forward a number of bills proposing legalization.
All of these legislative efforts have failed, due mainly to the hostility of a section of the political class, who are fiercely opposed to the idea.
It remains to be seen whether the report will help to tip the balance of the debate and progress the case for a legalized online gambling industry in Brazil.
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