Brazil’s Casino Legalization Efforts Stalled Amid Growing Dissent
The quest to authorize land-based casinos in Brazil has encountered another significant hurdle, as political tensions rise and dissent grows among lawmakers.
On Tuesday, Senate President Davi Alcolumbre announced the postponement of the crucial vote regarding the gambling bill, known as PL 2,234/2022, once more delaying the hopes of advocates for regulated land-based betting.
This delay comes over a year after the Justice and Citizenship Committee gave the green light to the proposal, which, if passed, would legalize various forms of gambling, including casinos and the traditional jogo de bicho, before being sent to President Luiz Inácio Lula da Silva for final approval—a procedure that is seen as largely procedural.
Alcolumbre pointed to a lack of sufficient representatives, with only 56 senators present during the session, noting several key opponents were missing. “This division in the Senate is clear,” he remarked. “Given the current quorum and the divergent views on the matter, it seemed prudent to withdraw the bill from consideration for now.”
The timing of when PL 2,234/2022 will reappear on the Senate’s agenda remains uncertain, particularly with a parliamentary recess looming on July 17.
An Ongoing Saga for Brazilian Gambling Legislation
Since the nationwide gambling ban was instituted in 1946, Brazil has yet to fully embrace land-based betting establishments. However, the country recently initiated a licensed online betting market, marking a notable shift.
Despite the push for on-site gambling, the movement faces staunch opposition from numerous senators who raised concerns in the recent plenary session. Alcolumbre’s withdrawal of the bill emphasizes the longstanding political split surrounding gambling in Brazil, where proponents argue for its economic potential while opponents emphasize social risks.
One prominent critic, Senator Eduardo Girão, expressed satisfaction over the bill’s postponement, asserting that public sentiment is heavily against such legislation. He advocates for a more thorough examination of the potential impacts of legalization, including the risk of increased addiction and crime.
“Regulating gambling online was a misstep, and moving forward with land-based options would be a grave error. The Senate must exercise caution," Girão stated.
Other senators echoed these sentiments, raising alarms about gambling’s potential, particularly its effects on mental health and family finances. Senator Chico Rodrigues highlighted that any economic advantages of legal gambling could be overshadowed by adverse impacts on retail and other sectors as families redirect their resources towards gambling.
Discrepancy Between Public Sentiment and Legislative Action
Interestingly, the postponement occurs despite a recent poll indicating majority public support for land-based gambling. A state-supported survey revealed that 60% of Brazilian adults favor legalization. Furthermore, 58% of respondents believe a licensed gambling sector could enhance tax revenue, while 44% foresee potential job creation in this emerging industry.
Online Sector Challenges Influencing Legislative Momentum
The rocky introduction of online gambling in Brazil has faced intense scrutiny, leading some to speculate that this scrutiny may be affecting the progress of land-based casino legislation. Just six months into the launch of the online sector, new advertising restrictions and a proposed tax increase to 18% have emerged, raising the total tax burden to nearly 50%.
Senator Girão has linked recent criticisms surrounding online gambling, particularly allegations of money laundering by organized crime, to the argument against legalizing further gambling avenues. He warned, “Recent headlines have highlighted the surge in criminal activity linked to gambling. It’s imperative that this government act to protect public safety and reconsider any further legalization.”
As Brazil continues to navigate these legislative and societal complexities, the future of land-based casinos remains uncertain, caught between the promise of economic growth and the realities of social responsibility.