Brazil: Vote on bill to legalize land-based casinos expected in first half of 2025, says tourism minister

Brazil is set to take another step in expanding its gambling sector with a vote on the legalization of land-based casinos expected in the first half of 2025. Minister of Tourism Celso Sabino has expressed optimism that the long-awaited bill will be approved in the coming months, following several delays throughout 2024.

The proposed legislation, PL 2,234/2022, which aims to regulate casinos, bingo, jogo de bicho, and horse race betting, received approval from the Justice and Citizenship Committee in June after narrowly passing with a 14-12 vote. However, the bill has yet to reach the Senate floor for a final vote. 

Its latest postponement came in December when Senator Irajá Silvestre withdrew the proposal after a contentious debate. Despite the setbacks, Senate President Rodrigo Pacheco has assured that a vote will take place in 2025, with Sabino anticipating the legislation to be sanctioned by the president within the first half of the year.

Sabino emphasized the progress made in regulating the online betting market, which officially launched on January 1, 2024. He believes the approval of land-based casinos is a natural next step in Brazil's broader gambling expansion efforts.

The potential legalization of brick-and-mortar casinos is seen as a significant opportunity for Brazil’s economy. The country's online betting sector, which features a 12% tax on gross gambling revenue (GGR), is already attracting major international operators such as Bet365 and BetMGM. The addition of land-based operations could further boost economic activity, supporters say.

Industry players are closely watching developments, with major global brands expressing interest in entering the Brazilian market. Hard Rock International, for instance, has indicated its readiness to invest in Brazil’s casino industry. 

However, amid the optimism surrounding the potential economic benefits, the prospect of land-based casino legalization has also faced opposition from some lawmakers and advocacy groups.

Concerns have been raised about the impact of gambling on vulnerable populations, particularly those receiving government assistance through programs such as Bolsa Família. The online gambling sector, which was legalized last year, has already come under scrutiny for its perceived influence on consumer spending habits and financial well-being.

Senator Eduardo Girão has been vocal in his opposition, warning against repeating what he describes as past mistakes with online betting legalization: “We had a signal from the betting companies, which we approved exactly one year ago here and we made a mistake and the mistake is there: lives destroyed. And we cannot take another step, make another mistake, which could cause more problems than solutions.”

However, supporters of the bill, including Silvestre and Sabino, argue that legalizing and regulating land-based casinos would provide a safer and more controlled environment for gamblers while reducing the influence of illegal gambling operations. They believe that formal regulation will help mitigate the risks associated with unregulated gambling and provide necessary oversight.