In a significant twist for Brazil’s gambling landscape, the Brazilian Senate has postponed the vote on a pivotal bill that would legalize land-based casinos, bingo halls, and the controversial street lottery game jogo do bicho. Originally scheduled for December 4, 2024, the vote now faces an uncertain timeline, with the vote likely to be pushed into 2025.

This delay was confirmed by Senate President Rodrigo Pacheco on November 28, with the vote now potentially set for December 10, 2024. The decision to delay came after significant opposition from political factions, as well as vocal concerns raised by religious and social groups who worry about the potential impact of expanded gambling on vulnerable populations.

Heated Debate: Economic Promises vs. Social Concerns

The proposed bill has sparked intense debate across Brazil. Proponents of the measure argue that legalizing casinos and bingo halls could generate thousands of jobs, attract much-needed foreign investment, and boost the country’s tourism sector. Furthermore, supporters believe that the legalization of these industries would help eradicate the illegal jogo do bicho, currently run by criminal organizations. These advocates—including members of the government and the Ministry of Finance—also see parallels with the recent legalization of sports betting in Brazil, suggesting that such a move could bring much-needed regulation and oversight to an already active gambling market.

A government official in support of the bill emphasized the need for transparency, saying, “The gambling sector is already active in Brazil, whether legal or not. By bringing it into the light and creating a structured legal framework, we can ensure greater transparency and regulate the market effectively.”

However, critics of the proposal—particularly from the evangelical community and other social groups—have voiced strong opposition. Many fear that expanding gambling in Brazil could exacerbate existing issues such as gambling addiction, money laundering, and debt accumulation, particularly among lower-income individuals. Senator Eduardo Girão (Novo-CE), a vocal critic, has warned that legalizing more forms of gambling would disproportionately affect families already struggling with debt. Additionally, the National Confederation of Commerce of Goods, Services, and Tourism has raised alarms about the potential economic costs, claiming that gambling could divert money away from essential goods and services.

What Does the Bill Propose?

The proposed legislation, if passed, would dramatically change the gambling landscape in Brazil. Among its provisions:

• Land-Based Casinos: The bill would allow casinos to operate within integrated resorts or high-end hotels, provided these establishments have at least 100 rooms. These casinos could also operate on sea and river vessels, though only a limited number of licenses would be granted per state.
• Bingo Halls: Under the new law, each municipality would be allowed to operate a bingo hall for every 150,000 inhabitants, or one per municipality with fewer than 150,000 people.
• Jogo do Bicho: The bill would also authorize the continuation and regulation of the illegal lottery game, known as jogo do bicho, but only under strict oversight. A single operator would be allowed for every 700,000 inhabitants.
• Other Gambling Activities: The bill also includes provisions for electronic and card bingo games, as well as the legalization of horse racing managed by tourism entities accredited by the Ministry of Agriculture.

As a further incentive, the bill includes significant taxation on the gambling sector, with proceeds directed toward social causes such as addiction prevention programs, child protection, and disaster relief.

Economic Impact: Billions in Investment, Millions of Jobs

Supporters of the bill point to its potential to reshape Brazil’s economy. Legalizing land-based casinos and bingo halls could inject up to R$100 billion in investment into the country, and proponents estimate that the gambling industry could generate 1.5 million new jobs.

The tax revenue generated from the sector would also be substantial. A 17% tax on gross gaming revenue could bring in R$22 billion annually, providing a significant boost to the national budget.

Finance Minister Fernando Haddad and Senator Irajá Abreu (PSD-TO) have strongly supported the initiative, emphasizing the need to modernize the country’s gambling regulations. They argue that creating a legal and transparent framework for the gambling sector will not only foster economic growth but also ensure that the industry operates in a fair and regulated manner.

Social Risks: Gambling Addiction and Public Health Concerns

While the potential economic benefits are clear, the bill has also been met with significant concerns about the social costs. Critics worry that the increase in gambling options will exacerbate existing issues such as addiction, which can lead to serious financial and personal consequences. Furthermore, critics argue that gambling addiction could lead to greater social problems, including crime, mental health issues, and financial instability for vulnerable populations.

Senator Eduardo Girão has been one of the most vocal opponents, arguing that gambling could increase levels of debt, particularly among Brazil’s lower-income groups. Others have voiced concerns that the expansion of gambling could place more stress on social services, which are already stretched thin.

President Luiz Inácio Lula da Silva, while expressing some reservations about gambling, has indicated that he would sign the bill if it passes through Congress. However, he has cautioned that exaggerated claims of job creation and economic growth associated with gambling legislation should be viewed with skepticism. In a recent interview, he stated, “I am not in favor of gambling, but if Congress agrees and it’s done responsibly, I see no reason to veto it.”

The Road Ahead for Brazil’s Gambling Future

Despite the economic promises, the bill’s future remains uncertain. The Brazilian Senate faces significant pressure to balance the potential for economic growth with the very real social concerns raised by critics. As the vote has been delayed until 2025, the outcome will likely depend on continued debates within the Senate and the wider Brazilian public.

The legalization of casinos and other gambling activities in Brazil may ultimately provide a boost to the economy, but only if it can be carefully regulated and implemented with attention to the potential risks to vulnerable populations.