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Brazil May Follow U.S. Online Gambling Example

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Unfortunately for Brazilian online gambling fans, the country's government is reportedly looking to follow the example of the United States' regarding its online gambling policies, by introducing a law to make it illegal for Brazil's banks and financial institutions to process any online gambling-related payments.

The piece of legislature being proposed by the Brazilian government is very similar to the Unlawful Internet Gambling Enforcement Act (UIGEA) that was passed by U.S. Congress in October 2006 and signed into law shortly thereafter by then President, George W. Bush. UIGEA is still in effect in the United States.

Although the American online gambling ban has drawn much criticism from within the United States and abroad - often described as 'prohibitionist' and 'draconian' in nature - it has not seemed to deter Brazilian government officials from travelling down the same road and risking the wrath of its many online gambling fans.

The Brazilian version of UIGEA, called Bill PLS 121/2008, is being spearheaded by Brazilian Senator, Magno Malta, who has been pushing for it to be passed for over a year. But luckily for Brazil's online gamblers, before a bill is passed in the country, it must wind its way bureaucratically through the halls of power.

Every bill must traverse through multiple parliamentary committees before it becomes subject to a comprehensive debate and voting in Brazil's Senate, Chamber of Deputies and ultimately in both houses of its Congress. The Bill was recently advanced to the government's Communications and Technology Committee.


Currently, as in many other parts of the world, online gambling is illegal in Brazil. However, there is no infrastructure in place to prevent foreign online gambling firms from operating in the South American country or Brazilian online gambling fans from frequenting their websites. Hence, Brazilian lawmakers are eager to act.

If Bill PLS 121/2008 is passed, it's possible that all gambling in Brazil - land and internet-based - will be banned. This is unlike in the U.S. where online gambling is banned, but betting on horse races and lotteries is allowed, to the chagrin of foreign gambling firms who accuse the U.S. of discriminatory trade practices.