Legalization of Sports Betting in Brazil Faces Uncertain Future

Hopes that the sports betting market in Brazil will be launched any time soon seem to need a dial-down after the latest developments in the country’s political life.

Bolsonaro Puts a Stop on Sports Betting Launch by Not Signing the Gambling Bill

The legislation was coined over the course of four years and then it was approved at the beginning of 2022. The gambling and sports betting markets in Brazil were supposed to have launched by now with sports wagering being made available just in time for the 2022 FIFA World Cup in Qatar but that did not happen. 

The reason why? The now-former president Jair Bolsonaro did not sign the necessary papers and effectively did not grant his approval for the launch of sports betting in the country despite the legislation being ready since May. 

This did not come as much of a surprise as Bolsonaro has stated on numerous occasions that he is against the legalization of sports betting in Brazil.

However, in the meantime, Brazil held national elections and has a new president of the republic – Luiz Inácio Lula da Silva who represents the Workers’ Party.

What this means for the launch of sports betting in Brazil is that the legislative procedure has to be started all over again after the new president takes office on January 1, 2023. The bill on gambling has to again go through the whole process of getting approved by various institutions until it again lands on the new president’s desk. So it is highly uncertain when all this will happen. 

Consequently, the launch of the sports betting market in Brazil is being postponed indefinitely. 

Brazil’s Latest Elections Bring Further Implications for the Gambling Market

The results of the Brazilian elections do not only mean a change of president. The Federal Senate will also undergo a major makeover.

Bolsonaro’s party, the Liberal Party, actually became the first power with 14 seats in the Senate. PSD won 11 seats, while the new president’s party, the Workers’ Party, got only 9 seats.

As Bolsonaro has proclaimed himself an opponent of legalized gambling in Brazil, this probably means that as the Liberal Party will be the leading party in the Senate, they will try to stop any gambling legislation that lawmakers try to push ahead.

President-elect Luiz Inácio Lula da Silva has so far not made any public statements on his stance on gambling. However, even if he and his party are positively inclined toward gambling legalization, the Liberal party is likely to thwart any attempts in that direction during discussions and voting on the gambling bill in the Federal Senate.