Today marks a historic decision of a new era for Brazilian entertainment and economy. The Senate’s Constitution and Justice Committee (CCJ) has approved a bill that legalizes casinos, bingos, and the traditional jogo do bicho. This move comes after Bill 2,234/2022 garnered a narrow majority with 14 votes in favour and 12 against. The bill’s approval signals a significant shift in Brazil’s stance on gambling, which has been subject to numerous debates and postponements.
The bill, which has been in the legislative pipeline since its introduction in the Chamber of Deputies in 1991 as Bill 442.91, has finally seen the light of day. Spearheaded by Senator Irajá (PSD-TO), the legislation aims to regulate and legitimize an industry that has long operated in the shadows. The senator emphasized the social and economic benefits of legalizing gambling, drawing parallels with the success stories of Las Vegas, Cancún, and Macau, as well as other Latin American countries where gambling is legal.
Senator Irajá’s report highlighted the potential for Brazil to generate approximately R$22 billion (US$ 4.05 billion) per year in direct taxes from the newly legalized activities. He argued that the move would not only curb illegal gambling but also create formal employment opportunities, citing that jogo do bicho alone currently provides over 1 million informal jobs.
The proposal outlines a strategic approach to the establishment of casinos, limiting their presence to one per state and the Federal District, with exceptions for more populous or larger states like São Paulo, Minas Gerais, Rio de Janeiro, Amazonas, and Pará. These casinos are to be integrated into tourist centres or leisure complexes, including high-end hotels with at least 100 rooms, restaurants, bars, and venues for meetings and cultural events.
Plinio Lemos Jorge, President of the National Association of Games and Lotteries (ANJL) in Brazil described the approval of the proposal in Brazil as a very important milestone for the industry. “It means that we are getting closer to having updated legislation, decriminalizing these modalities”. He added that ANJL will continue working so that the proposal is also approved in the Senate plenary “and, of course, always defending the formation of an honest and transparent market, which respects bettors”. Lemos Jorge believes that Brazil has enormous potential to attract major international players, “boosting the economy and generating resources and jobs in this new sector.”
The bill allows for the operation of casinos on maritime vessels, with a cap of ten for the entire country, and on river ships with at least 50 rooms. The number of casinos on river vessels is determined by the length of the river, with a maximum of three casinos on rivers exceeding 3,500 kilometres. These river casinos are restricted from anchoring in the same location for more than 30 days consecutively.
New era for Brazilian entertainment
The legislation also sets forth regulations for bingo games, both in card and electronic formats, permitting the accreditation of one legal entity for every 700 thousand inhabitants in each state to operate the game. These authorizations are valid for 25 years and are renewable for the same period. Additionally, horse racing may be operated by turf entities accredited by the Ministry of Agriculture, which can also run bingo and video bingo games concurrently.
HE John Aquilina, Malta’s Ambassador to Brazil said that legalizing and regulating gaming in Brazil has many positive outcomes. It aligns Brazil with global trends and helps to ensure that gaming is conducted responsibly and ethically. Speaking with SiGMA News, he said that legalization is an effective measure against illegal gambling activities, and overall will contribute to a safe society. The Ambassador added that legalisation of gaming will create new job opportunities in Brazil and will generate revenues for the nation.
The approval of this bill reflects Brazil’s evolving perspective on gambling. It sets a global trend where countries are recognizing the economic potential of regulated gambling industries. The anticipated increase in tax revenue and job creation positions Brazil to capitalize on a sector that has proven lucrative for other nations.
As the bill moves to the House Plenary for further deliberation, and potentially to presidential sanction without amendments, it carries with it the hopes of a nation looking to diversify its economy and modernize its entertainment industry. The decision by the CCJ is more than just a legislative victory; it’s a nod to the future, where Brazil could join the ranks of global destinations known for their vibrant and regulated gambling scenes.
This development is not without its detractors, some of whom have voiced concerns over the societal impacts of gambling. However, the proponents of the bill have been steadfast in their belief that the benefits outweigh the risks. They argue that the legalization and regulation of gambling will bring transparency and oversight to an industry that has long operated without it.
Brazil stands on the cusp of embracing a new facet of its cultural and economic identity. The successful implementation of this legislation could serve as a model for other nations considering gambling legalization. It is a bold step forward for a country known for its vibrant culture and zest for life, and it could very well be the beginning of a prosperous chapter in Brazil’s storied history.