In a major update for Brazil’s gambling landscape, the vote on a crucial bill that would legalize land-based casinos, bingo halls, and the controversial street lottery game jogo do bicho has been postponed by the Brazilian Senate. Initially scheduled for December 4, 2024, the vote now faces an uncertain timeline, with discussions likely to continue into 2025.
The delay was announced by Senate President Rodrigo Pacheco on Thursday, November 28, with the vote now potentially set for December 10, 2024. The decision came after resistance from various political factions, including vocal opposition from some religious and social groups concerned about the impact of increased gambling activity on vulnerable populations.
The bill, which has already passed the lower house in 2022, is part of a wider push by the Brazilian government to regulate and legalize various gambling activities within the country. As Pacheco explained, the bill is one of the Senate’s top priorities, along with other significant reforms such as tax regulations and artificial intelligence governance. The Senate has been working through an ambitious agenda ahead of the parliamentary recess scheduled to start on December 23, 2024.
Heated Debate on Economic Benefits vs. Social Concerns
The bill has sparked a heated debate in Brazil, with proponents arguing that legalizing casinos and bingo halls will create jobs, attract foreign investment, and boost tourism. Supporters also point out that legalization could help curb the illegal jogo do bicho, which is currently run by criminal organizations. These proponents, including members of the government and the Ministry of Finance, highlight the economic potential of regulating these industries in the same way that sports betting was legalized earlier in the country.
“The gambling sector is already active in Brazil, whether legal or not. By bringing it into the light and creating a structured legal framework, we can ensure greater transparency and regulate the market effectively,” said a government official who supports the measure.
However, there is considerable opposition, particularly from those concerned about the social and moral implications. Critics fear that legalizing more forms of gambling will exacerbate problems like gambling addiction and money laundering. The evangelical community, in particular, has voiced strong objections, warning that expanded gambling will have damaging effects on families and public health.
Senator Eduardo Girão (Novo-CE), a prominent critic, pointed to the rise of gambling-related debt, particularly among lower-income groups, as a major reason to halt the proposal. The National Confederation of Commerce of Goods, Services, and Tourism has also raised concerns about the potential economic losses caused by increased gambling spending, which they argue could divert funds from essential goods and services.
What the Bill Proposes
The proposed legislation is sweeping, allowing casinos to operate in integrated resorts or high-end hotels with a minimum of 100 rooms alongside meeting facilities, restaurants, and shopping areas. It also permits the establishment of casinos on sea and river vessels, with specific limits on the number of licenses granted per state.
Bingo halls would also be legalized, with each municipality allowed to operate one for every 150,000 inhabitants or one per municipality with fewer than 150,000 people. In addition, the bill would authorize the continuation and regulation of the jogo do bicho, but only under strict oversight, with a single operator allowed per 700,000 inhabitants. The bill also proposes regulations for electronic and card bingo games, as well as horse racing operated by tourism entities accredited by the Ministry of Agriculture.
The revenue from the gambling sector would be heavily taxed, with proceeds earmarked for various social causes, including addiction prevention programs, child protection, and funding for areas affected by natural disasters.
Economic Impact and Future Prospects
Supporters of the bill argue that the legalization of casinos and bingo will inject billions into the Brazilian economy and create significant employment opportunities. Estimates suggest that the gambling industry could generate up to R$100 billion in investment and create 1.5 million jobs. The proposed taxes on gambling, including a 17% rate on gross gaming revenue, would also contribute to the national coffers, potentially generating R$22 billion annually.
The Brazilian Ministry of Finance has supported the initiative, citing the need for modernization and regulation of the gambling market. Finance Minister Fernando Haddad, alongside Senator Irajá Abreu (PSD-TO), has advocated for a robust legal framework that ensures fairness and transparency in the sector.
Social Risks and the Future of Gambling in Brazil
Despite the potential economic benefits, the proposal faces an uncertain future. While President Lula has expressed a willingness to sign the bill into law if it passes through Congress, his comments reflect a cautious stance. “I am not in favor of gambling, but if Congress agrees and it’s done responsibly, I see no reason to veto it,” said Lula in a recent interview. However, he warned against the exaggerated promises of job creation and economic growth often associated with such proposals.
The postponement of the vote reflects the significant opposition to the bill, particularly from religious and social groups. However, as discussions continue, it remains clear that the issue of gambling legalization is far from resolved. As the Senate continues to weigh the benefits of increased regulation against the risks of addiction and crime, the future of the gambling industry in Brazil hangs in the balance.
Source:
Senado adia projeto que autoriza cassinos e bingos no país; proposta fica para 2025, senado.leg.br, December 4, 2024