Brazil’s Legalized Gambling Initiative Facing Lengthy Delay

Posted on: August 29, 2022, 10:07h. 

Last updated on: August 29, 2022, 11:46h.

While other Latin American countries find room in their legislative agendas to discuss gambling, Brazil seems to be stuck. The head of the Senate has confirmed that there won’t be any progress until December, at the earliest.

The latest delay doesn’t come as a surprise, as Senate lawmakers have been dragging their feet for months. However, the confirmation of the chamber’s position is another example of its lackluster interest in legalized gambling.

Several high-ranking Senate members, as well as Brazilian President Jair Bolsonaro, have publicly spoken about their opposition to legalized gambling. They’ve been sitting on the legislation the Chamber of Deputies approved in February, with no attempt to advance it.

New Government, New Laws

Brazil’s voters will head to the polls on October 2 to determine who will lead the country for the next four years. If no candidate gets over 50% of confirmed votes, a second vote will take place on October 30.

The president of the Senate, Rodrigo Pacheco, confirmed to local media that no discussion on the gambling bill will occur until after the elections. For some politicians looking to secure a spot in the government, taking a public position on gambling could help. Research from this past May showed that 58% of the general public supports the legalization of gambling.

That research pointed out several benefits legalized gambling could bring. Respondents indicated it would have a positive effect on tax collection, with 61% supporting the idea. In addition, Brazilians also expect that legalized gambling at resorts will lead to increased employment.

Bolsonaro is up against a former president, Luiz Inacio Lula da Silva. There are other candidates, but these are the two most likely to face each other in the final vote.

Neither candidate is a strong supporter of legalized gambling. Lula (as he is nicknamed), who was Brazil’s president from 2003 to 2010, isn’t as critical of the industry as his opponent. Still, his background, including allegations of corruption and money laundering, may be stumbling blocks in the election.

The Rebirth of Brazilian Gaming

The legislation would allow casinos, bingo, online games, and other forms of gambling. In addition, it implements a licensing structure that would authorize either permanent or set-length licenses.

Resorts would be able to open casinos as part of an integrated leisure complex. These, according to the current legislative framework, would have to have at least 100 high-end hotel rooms, meeting and event rooms, restaurants, bars, and shopping centers.

The physical space of the casino must be, at most, equal to 20% of the built area of the complex. The venues would be able to host electronic and roulette games, card games, and other authorized gambling activities.

The rules have the support of the National Federation of Mayors of Brazil. This could prove beneficial, as political candidates maneuver for position ahead of the elections.