Brazil’s Casino Legislation: A Pending Vote and the Path Ahead

Brazilian senator Irajá Silvestre, affiliated with the PSD party in Tocantins, recently announced that the time is not yet right for the Senate to vote on the legalization of land-based casinos. The anticipated vote, which was expected to occur within the month, has been postponed yet again—a decision that underscores the complexities of Brazil’s evolving gambling landscape.

Background and Delays in Legislation

The proposed legislation, known as PL 2,234/2022, aims to legalize land-based casinos, "jogo de bicho" (an illegal betting game in Brazil), and horse racing betting. Unfortunately, this is not the first time that the vote has been delayed; an anticipated vote in August was missed, and hopes for action after the October municipal elections have yet to materialize. Silvestre, who serves as the rapporteur for the casino bill, assured stakeholders: “We are waiting for things to cool down, but I am convinced that this year we will pass the bill. We already have the necessary votes; we have convinced the senators, at least the majority,” he stated during a business event in São Paulo on October 18th.

Potential Economic Impact

The stakes are high, both literally and figuratively. If approved, the legislation could generate approximately BRL 20 billion (about USD 4 billion) in annual revenue for Brazil. Proponents of the land-based casino industry believe that the timing is ripe for this bill to pass, especially as they advocate for the economic and employment opportunities that casinos could provide.

Alex Pariente, the corporate senior vice president of casino and hotel operations at Hard Rock International, emphasized the urgency of the situation in remarks made last September. He noted that the ongoing debates in the Senate are necessary and healthful, stating, “I think you’re going to see results very soon.”

Polarizing Online Betting Preparations

As the debate over land-based casinos unfolds, the Brazilian government is also gearing up for the launch of licensed online betting, scheduled for January 1, 2025. The liberalization of online betting has sparked significant controversy. Politicians and public figures have raised concerns about its potential effects on vulnerable populations, particularly the elderly and those receiving government assistance.

President Lula da Silva is expected to address these critical issues in the coming weeks, especially concerning proposed legislation aimed at protecting at-risk groups. Recently, the Secretariat of Prizes and Bets (SPA) published a list of over 2,000 operator domains that were blocked for failing to apply for licenses before the September 30 deadline. Notable companies like Flutter’s Paddypower and Entain’s Bwin and Ladbrokes brands were among those affected but have sought licenses for their other brands.

Industry Reinvention and Public Perception

Irajá Silvestre has alluded to the criticism surrounding the gambling industry, asserting that it requires a "political makeover" to reshape public perception. He believes that the sector can emerge stronger from this phase of scrutiny and concern. His comments highlight the importance of garnering public support and navigating the political intricacies that accompany legislation in the gambling realm.

The original report concerning the vote’s postponement appeared in Veja, a widely read weekly news magazine. The gambling bill, if passed, would not only legalize land-based casinos but also encompass the operation of bingo halls and horse racing betting—a comprehensive vision for the future of regulated gambling in Brazil.

The Road Ahead

As Brazil stands at the threshold of significant changes in its gambling legislation, the path forward remains uncertain. While stakeholders in the gambling sector are eager for progress, the looming political landscape and public concerns may continue to stall advancements. For now, the dialogue surrounding gambling reform is ongoing, with hopes that future discussions will lead to concrete legislative action and a more vibrant economic landscape for the country.