DOM 19 DE MAYO DE 2024 - 02:25hs.
Article from Tribuna do Interior newspaper

The law behind gambling in Brazil

While official decisions are not taken, a billionaire market operates at the margins of the law. Gambling continues to happen clandestinely throughout the country, preventing the money from being collected by the government. With an emerging market, it would be worthwhile for the government to break CAIXA's monopoly on regional sports betting activities, and to allow other companies to exploit that territory, according to an article published in ‘Tribuna do Interior’ newspaper.

Questions about the legalization of gambling in Brazil are old and still aimless. Until the 1940s, the activity was allowed in the country, but a decree of then President Dutra canceled the licenses and concessions of establishments that provided this type of service. Since then, gambling has been banned in the country, except for those operated by Caixa Econômica Federal. The bingo halls were also authorized for a short time, which ended in 2004.

The setback of gaming ban is that in the Federal Constitution there is no prohibition or determination regarding games of chance in the country, so it is up to the parliamentarians to decide officially. Some gambling approval projects are being processed by Congress, but still pending voting.

Over the last few years, residential broadband connections in Brazil have experienced a notable rise in adoption rates and the number of internet users is growing with enormous speed. Brazil is fifth in terms of the number of internet users by country. The proportion of internet users per population is, however, lower than some other Latin American countries such as Chile and Argentina. Brazil ranked 78th in the world for internet speed and 65th for fixed broadband speeds during May 2019.

This debate on the legalization of gambling in Brazil revolves, mainly, the possibilities of collection. The groups that defend the liberation and regularization of the activity affirm that the collection of taxes would increase considerably if approved. In addition, they also argue about the movement in the economy, with new employment opportunities in casinos, for example. The opposite side, however, reinforces that with the liberation of gaming there would be more openness and ease to illegal activities such as money laundering and concealment of assets.

Poker: a specific case

During this debate over the years, some games have grown and become more popular. Like the case of poker, both in casinos and online poker. In Brazil, casino activities are still prohibited because they involve various types of games of chance, however, poker is released. The reason for this, and which many are unaware of, is that it is considered a sport, not a game of chance.

According to article 50 of Decree Law 3,688 / 41, gambling is "in which the gain and loss depend exclusively or mainly on luck," which is not the case with a poker game that requires strategy, study and mainly, skill of the player. Some research has already proven that the game depends on about 10% luck, and all other factors related to the skills of the player.

However, even though it is considered a sport, of course poker cannot be practiced in casinos in Brazil, since they have other activities involving games of chance, such as roulette, slot machines, among others.

The solution is online: is it worth playing?

Fortunately for poker enthusiasts, there is an extremely practical and simple solution: playing online. With the great advantage of being accessible at anytime, anywhere in the world, the online modality has won an increasing number of fans. In addition, the ever-growing online poker market brings many possibilities, both for websites and consumers.

In addition, the possibilities and options of online poker games are much larger and more flexible than casinos. Players can choose from various types of games, as well as tournaments, multi-table play at the same time, test new strategies, among others. The facility to play online is also a great attraction for both professionals and amateurs. Just an Internet connection, and it is possible to play from any device.

Another good thing about online poker is the practicality and security of financial transactions, even if they are online bets. A breach in Brazilian law guarantees the possibility of betting made on sites whose servers are hosted in countries where the activity is allowed. That is, a Brazilian player can place a bet on a site hosted in the United Kingdom, since bets are allowed in that country.

The future of gaming in Brazil

While official decisions are not taken, a billionaire market operates on the maring of the law. Gambling continues to happen clandestinely throughout the country, preventing the money from being collected by the government. As for online gaming, it is estimated that this industry is worth more than $ 250 million.

With an emerging market, it would be worthwhile for the government to break CAIXA's monopoly on regional sports betting activities, and to allow other companies to exploit that territory as well. Currently Brazil is one of the only countries in the world that still prohibits gambling.

Alternatives such as casinos in resorts and reserved areas, focused on tourism, are some of the possibilities that permeate the proposals of those who are in favor of approval. Some countries already operate in this way and show that they are successful cases in which Brazil can mirror itself. Portugal, for example, recorded a 4% increase in its GDP in 2017 with tourism, driven by the attractiveness of casinos and resorts.

Source: GMB / Tribuna do Interior