Brazilian Government drafted its ‘Internet Constitution Policy’, a set bills designed to implement policies and standards for governance and regulating internet and digital use in the region.
Part of the drafted Bill has been geared towards implementing potential policy for the governance of igaming in Brazil. The Bill sets to implement restrictions on use of unlicensed online gambling and sports betting operators.
Brazil does not allow igaming services, however current Brazilian laws regarding gambling (Article – Civil Code 1.087), state that operators require a governmental contract from the jurisdiction in which the operator originates from.
The wording has enabled multiple operators from igaming jurisdictions such as Gibraltar, Malta and Alderney to operate Brazilian igaming services without fear of persecution by local authorities. The ‘Internet Constitution Policy’ aims to bring clarity to the matter and a framework for policing igaming in the region. It is widely thought that the Bill will look to close the above loophole, and implement future restrictions on un-authorized igaming operators.
Restrictions are set to include ISP blocking, which will be undertaken by regional internet service providers. Further sanctions would see Brazilian banks impose blocks on payments to unlicensed igaming operators.
Supporters of the Internet Constitution Policy’ want the bill to be prioritised by the government as the country prepares to host the upcoming FIFA World Cup 2014.