Bill Approved for Gambling and Casino Legalization in Brazil
The Senate’s Constitution and Justice Committee (CCJ) approved a report on Wednesday (19) by a vote of 14 to 12, regarding a bill proposing gambling and casino legalization, such as bingo and “jogo do bicho” (a type of lottery), in Brazil. The matter will now be sent to the full Senate. Bill 2.234/2022 originated from the House of Representatives, where it was approved, and has been under consideration in the Senate since 2022. The proposal includes provisions to allow the establishment of casinos in tourist hubs or integrated leisure complexes, such as high-end hotels (with at least 100 rooms), restaurants, bars, and venues for meetings and cultural events. The project also proposes the potential issuance of a casino license for each state and the Federal District. Some states would have exceptions, such as São Paulo, which could have up to three casinos, and Minas Gerais, Rio de Janeiro, Amazonas, and Pará, which could have up to two each if the project is approved. The justification for these exceptions was based on population size or territory. The Positive Economic and Cultural Impacts Senator Rogério Carvalho (PT-SE) emphasized casinos’ economic and cultural importance for many Brazilian municipalities, supporting the project. “We know the importance that the Casino da Urca, which operated in Rio de Janeiro until gambling was banned, had,” he noted. “How many cities lost relevance and importance because this type of gambling activity was prohibited?” he added. He argued that gambling should be regulated so the state can control and tax the activity. According to the project’s rapporteur, Senator Irajá (PSD-TO), casinos could generate 700,000 direct jobs. They could also generate 600,000 indirect jobs. Additionally, they are expected to boost tourism.”What, after all, is the fear of facing this issue?” Irajá asked. Gambling and Casino Legalization Opposition During the CCJ session, most of the remarks came from senators opposing the project. One of the main arguments presented was the impact on the healthcare system, which would have to address an increase in gambling addiction, according to senators from parties like PL and Novo. Senator Magno Malta (PL-ES) cited the example of the United States, where the legalization of casinos created an environment conducive to prostitution, drug use, and the mafia. Marcos Rogério (PL-RO) reinforced this argument. “We are facing a pandemic [of gambling addiction] today.” Gambling in Brazil has been prohibited since 1946. Font: Agência Brasil Want to know more about the iGaming and online casino business? Talk to our team and discover a great investment opportunity in the gaming industry for you.
How Much Does It Cost to Open an Online Casino in Brazil?
With the growing interest in gambling in Brazil and the gradual legalization of the sector, many entrepreneurs are considering the possibility of opening an online casino. However, before diving into this promising market, it is essential to understand the cost to open an online casino in Brazil. This article details the main financial aspects you should consider when planning this venture. If you are considering entering the business and opening your own online casino, learn about the advantages of acquiring the turnkey solution from EGS Digital Services, which includes licensing, platform, and payment provider. Talk to our team! Licensing and Regulation Operating License Obtaining an operating license is one of the first and most important steps. The license ensures that the casino operates legally and complies with local regulations. In Brazil, the license can cost around R$30,000,000 (approximately €5,500,000), which can be a significant investment. Alternatively, licenses from jurisdictions like Anjouan, Curaçao, or Malta can be a good option. These licenses are not only more affordable, ranging from €25,000 to €100,000 per year, but also allow operation in gray markets and provide a global reach. See how to issue your gaming license with EGS Digital Services Legal Consultancy Besides the license, it is advisable to hire specialized legal consultancy to ensure that all operations comply with the law. Legal fees can vary, but a good specialized lawyer can cost between €10,000 and €50,000 per year. Website Development and Maintenance Software Platform Choosing a reliable software platform is crucial. Opting for ready-to-use software solutions is an effective way to start operations quickly and with reduced costs. These solutions generally cost between €15,000 and €20,000, with additional monthly commissions based on the casino’s earnings, which can vary from 10% to 20% of gross revenue. Marketing and Customer Acquisition SEO (Search Engine Optimization) A solid SEO strategy is vital to increase the visibility of your online casino. SEO costs can vary, but an effective campaign can cost between €4,500 and €18,000 per month. This includes keyword research, content creation, on-page and off-page optimization, and continuous monitoring. Advertising Investments in digital advertising are essential to attract new players. PPC (Pay-Per-Click) campaigns on Google and social networks can cost between €18,000 and €90,000 per month, depending on the reach and goals of the campaign. Affiliates Affiliate programs are an effective way to attract traffic and new players. Costs vary, but typically involve paying commissions ranging from 20% to 50% of the revenue generated by affiliates. Operations and Support Customer Support Team Efficient customer support is essential to maintain player satisfaction. While a large-scale operation requires a robust team, a small operation can start with just one agent. A dedicated agent can cost between €15,000 and €25,000 per year, depending on location and experience. Payment Management Integrating and managing multiple payment options also incurs costs. Transaction fees and payment processing services can cost between 1% and 3% of the transaction value. Additionally, developing systems to prevent fraud and money laundering is crucial and can cost between €9,000 and €27,000 per year. Cost to open an online casino in Brazil: Conclusion This is the cost to open an online casino in Brazil. Opening an online casino in Brazil involves a series of initial and ongoing costs, which can vary significantly depending on the scale and sophistication of the desired operation. In summary, the main costs include: Therefore, it is crucial to plan meticulously and ensure you have the necessary capital to sustain the operation until it becomes profitable. With proper preparation, you can establish a successful online casino and take advantage of the growing opportunities in the Brazilian market. If you are considering entering the business and opening your own online casino, learn about the advantages of acquiring the turnkey solution from EGS Digital Services, which includes licensing, platform, and payment provider. Talk to our team! Font: Google
