Brazilian lawmakers push back vote on bill to legalize casinos, land-based gaming

Brazilian lawmakers have pushed back a vote on the bill to legalize casinos, bingo, jogo de bicho and betting on horseracing. While a debate was called for Thursday, and senators did debate issues such as money laundering, addiction and the economic benefits of legalization, no vote was taken on the proposal.

This move seemingly postpones the vote to October, following the first round of municipal elections, slated for October 6. The senate plenary was expected to vote on the measure, PL 2,234/2022, following its return from recess on August 1. The bill was previously approved by the Justice and Citizenship Commission, which passed it by 14 votes to 12.

During Thursday's meeting, legislators weighed the pros and cons of regulation. Some senators highlighted the positive impact legal casinos could bring to the country, including new tax revenue and job creation. Meanwhile, gambling critics such as Eduardo Girão expressed concerns over potential negative impacts including problem gambling and money laundering.

During his presentation, Girão highlighted a US study that claims for every $1 taxed on gambling, another $3 is spent by the state on social issues caused by betting. The senator also warned that around 40% of casinos' revenue comes from gambling addicts, and that problem gambling could lead to a spike in suicide rates. Senator Damares Alves and pastor Silas Malafaia expressed similar opinions.

Not all senators echoed these concerns, though. The rapporteur, senator Irajá said these issues were taken into consideration when the proposal was drafted, including a ban on credit cards, with payments only available through Pix or debit cards. Moreover, the measure comes with a rule to prevent bank loans for gambling in a bid to minimize harm. 

Irajá also addressed money laundering concerns, highlighting that cash payments won’t be allowed, while monitoring of digital betting methods will be mandatory. According to his view, the economic benefits of gambling outweigh the cons, noting that out of the members of the G20, a coalition grouping the 20 largest world economies, only Brazil and Indonesia are yet to legalize gambling.

Leonardo Henrique Benites de Prado, an expert on gaming and betting regulation, was also part of the debate. While he acknowledged that addiction could derive from betting, he noted that problem gambling only affects "a tiny portion of society," reason why lawmakers shouldn't "restrict the freedom of the vast majority."

Moreover, legalized gambling could boost tourism, gambling proponents said. The Secretary of Infrastructure, Credit and Investment in Tourism of the Ministry of Tourism, Carlos Henrique Sobral, said Thursday that legal casinos in Brazil could create over 650,000 jobs and increase revenue by BRL74 billion ($13.3 billion). He cited Las Vegas, Macau and Singapore as destinations that achieved economic development by embracing integrated resorts.

Still, it remains to be seen when senators will pick up the issue again. Senate president Rodrigo Pacheco, who is prioritizing matters such as tax and state debt over the gambling bill, said the proposal required further discussion to fully analyze the pros and cons of legal land-based gambling.