The fate of Brazil’s fast-growing iGaming market could be reshaped by the supreme court.

IMGL Brazilian legal expert Caio Loureiro told Ana Maria Menezes that “the next court ruling could reshape Brazil’s entire betting landscape” on the latest episode of iGaming Daily. 

With the market performing strongly, delivering more than €3 bn in GGR in the first half of the year, the outcome in the courts could dictate what happens next. 

The current restrictions under Section 35A of Brazil’s 2018 betting law are seen as a barrier to investment and competition; Loureiro said that it brings challenges for operators in the country. 

“One company cannot hold more than one concession here in Brazil. The second restriction is that if you are a state-authorised lottery operator, you cannot advertise in another state territory.

“Up to now, we have already five justices that rule in favor of the states and this prediction here is that the Supreme Court confirms that the two articles are indeed unconstitutional.”

Loureiro went on to add that it is unlikely that any bill will be passed in this year, making it a waiting game. 

“I would think twice if I believe that the bill will pass this year. The only thing here is that this window is really, really far right now.”

Contradictions in the Brazil market

Finance Minister Fernando Haddad has been criticised for his contradictions when discussing the Brazilian market. 

For example, he has shown support for land-based casinos for  tourism and job-creating investments, 

Yet, he has publicly branded iGaming as harmful to families due to losses. 

Loueiro said these inconsistent opinions don’t help the overall case.  

“Some parts of the political sphere have challenged online gaming (and) sports betting, because they think there’s evil, as you said, Ana, and they are causing a lot of debits for the population here. I don’t agree with this statement.

“We all know that there are ways to control and debit and we know the real problem is not the regulated market but instead the legal market because you don’t have any controls on the illegal market here.”

He rounded off by saying the illegal market is a clear issue that could affect everything. 

“People say that sports betting and online gaming are breaking down the economy. I know this is not true. The real problem is not the regulated market but instead the illegal market.”