Since 1940, Brazil has maintained a closed gambling market. The Brazilian government only allows state-owned lotteries and horse-race wagering. Brazil also granted permits for bingo and slot machines in the 1990s but they were later banned in the mid-2000s.
Brazil is the seventh-largest country by population. Their gaming regulations are strict for teenagers, especially under the age of 18 teenagers. Under the Brazilian civil code, bets are classified as contracts restricting legal gambling activities to individuals under the age of 18. Brazilian child and Adolescent protection act prohibits children and teenagers from entering venues where bets are made.
1 – Unique Legal Regulation for Poker, Social gaming, and Skill Based Game
In Brazil, private entities can operate Poker, Skill games, and social gaming without needing formal licensing. This provides flexibility to recreational gambling outside of state-owned lotteries.
Through the regulations, private businesses have the freedom to organize and conduct Poker games, skill-based gaming events without worrying about licensing.
2 – Horse-race wagering Regulation
Unlike Poker and social gaming, Brazil has different regulations for Horse-race wagering. In Brazil, horse race wagering is limited to non-profit organizations with authorized race tracks for racing. These entities have the leverage of hiring private suppliers and agents without the need for specific licensing or regulatory oversight.
3 – Lotteries Monopoly of Government
In Brazil, Lotteries are exclusively owned by states. The government takes control of Lotteries through Caixa, a state-owned financial services company. Caixa gained control over the federal lottery in 1961, which resulted in the cancellation of all private lottery licenses. Lottery entities existing before 1967 are allowed to operate independently. SECAP, an entity under the Ministry of Economy, regulates lottery activities in the country.
While over 13,000 lottery points of sale are privately operated with the permission of Caixa, these operators must obey the rules set by the secretariat. Additionally, these private operators are not allowed to create new gaming products, they can only distribute and sell existing lottery points.
Furthermore, Brazil has introduced the Fixed-odds betting lottery law different from the traditional lotteries.
4 – Lotteries Venturing into New Products
In 1993, several Brazilian provinces took steps to diversify their gaming offerings by introducing new gaming products such as slot machines, bingo venues, and online gaming.
However, in 2007, the Supreme Court of Brazil ruled that municipal legislation regarding gambling was unconstitutional.
5 – Legal loophole in Gambling Regulation
Foreign gambling companies find a legal loophole in Brazilian gambling regulations, which enables them to offer gambling products in Brazil. In the loophole, if the company’s website is hosted in a jurisdiction that authorizes gambling, then the companies won’t face any legal action from the government. The Brazilian government hasn’t taken any action against the Foreign companies.
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