Brazil’s Casino Legalization Effort Faces Another Setback
Brazil’s long-standing effort to legalize casinos has encountered another political hurdle amid growing criticism.
The Senate has once again postponed the vote on the legalization of casinos in Brazil.
Senate President Davi Alcolumbre announced the removal of the casino bill, PL 2.234/2022, from the agenda, dealing another blow to proponents of land-based gambling in Brazil.
More than a year has passed since the Constitution, Justice and Citizenship Committee approved PL 2.234/2022. The Senate vote was the final step before President Luiz Inácio Lula da Silva could sign it into law.
Alcolumbre cited low attendance in the plenary, with only 56 senators present and several key opponents of land-based gambling absent from the session.
“There is certainly a division in the Senate on this issue,” Davi said. “Given the quorum of 56 senators, the significant disagreement on the matter, and requests from senators who would like to be present for the vote, this presidency will remove this item ex officio.”
It remains unclear when PL 2.234/2022, which would legalize land-based gambling verticals such as casinos, bingo, jogo do bicho, and horse race betting, will return to the Senate agenda, as the next parliamentary recess begins on July 17.
Brazil’s Long Wait for Casino Legalization Continues
Brazil banned gambling nationwide in 1946, but the country licensed the online betting market on January 1st of this year.
However, the wait for legal land-based gambling continues, facing strong opposition from several senators who voiced concerns during Tuesday’s plenary session.
Alcolumbre’s decision to postpone the vote highlights the deep political divide regarding gambling in Brazil. Supporters argue that casino legislation could provide enormous economic benefits, while opponents primarily worry about the social consequences of gambling.
Senator Eduardo Girão has been a major opponent of gambling in Brazil and celebrated the removal of PL 2.234/2022 from the agenda, claiming that the population was concerned.
Girão wants the bill to be referred to three committees to explore the impacts of legalization and consider potential increases in addiction levels and gambling-related criminal activities.
He views the legalization of the online sector as a mistake, saying: “The betting houses have shown that it was a mistake for this House to regulate them.”
“Making a mistake once is understandable, but making a mistake twice is not. The Senate needs to have a minimum of sensitivity and reject this.”
Senators Humberto Costa, Plínio Valério, and Chico Rodrigues also expressed their opposition, citing impacts on mental health and family debt.
Chico argued that any economic benefits are offset by the impacts of gambling on other sectors of the economy, such as retail.
“The taxes collected from the legalization of gambling cease to be collected from other economic activities, as families stop consuming and start spending on gambling,” Chico stated.
Vote Postponed Despite National Survey Findings
The postponement of the vote comes despite the fact that a large majority of the population apparently supports land-based gambling. A recent government-backed survey revealed that 60% of the Brazilian adult population is in favor of legalizing casinos.
In April, the DataSenado Research Institute found that only 34% of the 5,039 Brazilian men and women aged 16 or older interviewed were against the bill’s approval.
With some estimates suggesting that legalization could generate around R$ 20 billion (US$ 3.5 billion) in annual revenue, 58% of those interviewed by DataSenado agreed that a licensed casino sector would increase tax revenue in Brazil.
Furthermore, 44% said that such legalization would increase the number of jobs in Brazil.
Pressure on the Online Sector May Be a Contributing Factor
The regulation of the online sector has been hampered by political criticism and media scrutiny, which some believe may have led to delays in the legalization of land-based gambling.
Just over six months have passed since the legal online market went live, and it already appears that the sector will face new advertising restrictions and an increase in the tax rate on operators to 18%, which would raise the total tax burden to around 50%.
Senator Eduardo Girão claims that recent media coverage of increased money laundering related to online betting is evidence that the land-based form should also not be authorized.
“You can read the headlines from O Globo, Estadão, and Folha recently, showing that organized crime has never laundered so much money, never profited so much from the advent of gambling,” Eduardo stated in June. “And what is the problem in Brazil today? Basically, it’s public safety.”
“The Lula government, which claims to protect the less fortunate and the poorest, can correct this mistake of betting by not allowing more gambling to take place.”
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