The Brazilian Senate has postponed the vote on a crucial bill that would legalize land-based casinos, bingo halls, and the controversial "jogo do bicho" (animal game). Originally slated for a vote on December 4, the bill will now be revisited in 2025, after significant debate and resistance surrounding the proposal. This setback highlights the ongoing tensions over the legalization of gambling in the country, especially following the recent rise in gambling addiction after the approval of online sports betting and casinos.
The Senate’s Decision to Delay
The delay was officiallyannounced by the Senate on December 4, 2024, as lawmakers sought more time to address growing concerns over the impact of gambling expansion. Critics of the proposal argue that legalizing more forms of gambling will exacerbate social issues such as addiction and money laundering, particularly in light of the rapid growth of online gambling platforms. The government, however, remains supportive of the bill, with officials pointing to the economic benefits and job creation it could bring.
Despite strong opposition, President of the Senate, Rodrigo Pacheco, had hoped to push the vote through before the end of the parliamentary year, but resistance from several lawmakers led to the decision to postpone. Pacheco remarked, "The Senate needs to decide whether to approve it or not, as this proposal already has backing from the government and support from many sectors."
The bill, known as PL 2234/2022, had passed through the Constitution and Justice Committee (CCJ) earlier this year. It proposes that land-based casinos could operate in resorts or integrated leisure complexes, with strict regulations surrounding their locations. According to the bill, casinos would be allowed in regions with strong tourism industries, and licenses would be granted through a public bidding process.
The Bill’s Provisions
The bill outlines a detailed structure for the legalization of land-based casinos, with several key provisions, including:
- Casino Locations: Casinos could only be established in tourist areas or high-end resorts with at least 100 hotel rooms. They could also operate on ships, rivers, and at sea. Each state would be limited to one casino, with exceptions for larger states like São Paulo.
- Bingo Halls: The proposal would allow for the expansion of bingo halls, which would operate in larger cities with a population of over 150,000, and in stadiums with a capacity of 15,000 spectators or more.
- “Jogo do Bicho”: The infamous street lottery, "jogo do bicho," would also be legalized, but under strict regulations to curb organized crime. The bill suggests one operator for every 700,000 inhabitants, with restrictions in states with smaller populations.
- Horse Racing: Horse racing would be regulated by tourism bodies and could include the operation of bingo and video bingo games alongside it.
Opposition to the Proposal
The bill has sparked heated debates, especially among religious and political groups concerned about its potential social harm. The opposition argues that legalizing land-based gambling could lead to an increase in gambling addiction, particularly in vulnerable communities. Pastors, including Silas Malafaia and Robson Rodovalho, have signed a letter denouncing the proposal, claiming it would lead to "indebtedness, addiction, and exploitation of the vulnerable."
There is also concern about the potential for money laundering through gambling establishments. Critics point to the example of online sports betting, which, despite regulation, has raised concerns about the risks of financial crime.
Senator Eduardo Girão, a vocal critic, has linked the increase in gambling activity to rising debts, particularly among Brazil’s most vulnerable populations. He pointed out that beneficiaries of social welfare programs like Bolsa Família are spending significant amounts on gambling, highlighting the dangers of further liberalizing gambling laws.
Support for the Bill
On the other hand, supporters of the bill argue that the legalization of land-based casinos could bring substantial economic benefits. Proponents point out that the establishment of casinos and other gambling venues could create jobs and generate significant tax revenue. The Brazilian government, including Finance Minister Fernando Haddad, has expressed support for the proposal, with Haddad stating that well-regulated gambling could "generate employment and income."
The proposed law includes provisions for taxes and oversight mechanisms aimed at ensuring that gambling operations are tightly regulated. The bill would impose a Gaming and Betting Inspection Fee (Tafija) and an Economic Domain Intervention Contribution (Cide-Jogos), with the revenue from these taxes earmarked for public health, safety, and addiction prevention programs.
What’s Next for the Bill?
Despite the delay in the vote, the bill will continue to be a topic of discussion in Brazil’s Senate. With several high-profile lawmakers calling for further analysis and with the upcoming parliamentary recess, it’s uncertain when the issue will be revisited. The proposal has strong backing from government officials and some members of Congress, but significant opposition remains.
If passed, the bill would mark a significant shift in Brazil’s gambling landscape, bringing land-based casinos and additional gambling activities into the fold of legalized entertainment. For now, however, the issue will remain on the table for further discussion in 2025.
Source:
"Senado adia projeto que autoriza cassinos e bingos no país; proposta fica para 2025", www12.senado.leg.br, December 4, 2024.
