A report compiled by consulting firm KPMG and commissioned by the Remote Gambling Association (RGA) estimates that Brazil’s online gambling market could be worth R$6.7 billion ($2.1 billion), if regulated properly.

The report’s findings are being made public at a time when the proposed legalization of certain gambling services, iGaming included, is gaining momentum in the Brazilian government.

The RGA is an international trade association that represents the online gambling industry and promotes the legalization and regulation of iGaming services in jurisdictions where this is yet to happen. Some of the world’s largest online gambling companies are members of the organization. It is also important to note that many of the companies have also expressed interest in entering Brazil’s gambling market, in case the country legalizes the provision of their services.

According to KPMG’s report, Brazil could have a very lucrative online gambling market if it legalizes and regulates these activities in a manner that combines a “sensible and effective” licensing regime, a taxation framework that is based on gross gambling revenue (and not on turnover as it is the case in several recently regulated jurisdictions), and the right measures for the socially responsible provision of online games and sports betting.

In addition to this, the introduction of an online gambling regulatory framework would reduce the size of Brazil’s unregulated market, KPMG pointed out in its report. According to figures from the Brazilian Legal Gaming Institute (Instituto de Jogo Legal – IJL), illegal gambling operations in the country generate around R$20 billion ($6.2 billion) each year.