Brazil: divergence marks debate on legalising casinos and bingos

While representatives of the government and the tourism and events industry, as well as the bill's rapporteur, defended the bill's approval, arguing that it would generate jobs and income in the country, other senators and debaters warned of the risk of the activity being used by organised crime to launder money and aggravate gambling addiction, or ludopathy. The session took place on Thursday (8) in the Plenary.

According to Senate President Rodrigo Pacheco, the bill (PL 2.234/2022) is comprehensive and complex. On the one hand, it seeks to regulate activities that have been illegal for more than 30 years, generating revenue for the state; on the other hand, it raises legitimate concerns in society about gambling and its consequences for the population's mental and financial health, Pacheco said. For him, the Senate needs to analyse all facets of the proposal, considering the impacts on Brazilian society. 

“We must carefully evaluate the possible benefits, such as generating jobs and revenue for the Brazilian state, but also the risks and challenges, including preventing money laundering and fighting organised crime, as well as the social and public health problems related to gambling”, stressed the senator.

The proposal, which was presented in the Chamber of Deputies in 1991 and has been pending in the Senate since March 2022, provides for the creation of two taxes from the authorisation of the operation of casinos, bingos, gambling and betting on horse races in Brazil. The revenue will be shared with the states, the Federal District, municipalities, the Brazilian International Tourism Promotion Agency (Embratur) and sports and culture funds.

The rapporteur of Bill 2.234/2022, Senator Irajá (PSD-TO), claimed that countries that have already regulated gaming and betting have grown socially and economically following the decision. In his opinion, it is strategic and necessary to try to put the country on the world tourism route, "saying no to illegal and clandestine gambling" and imposing limits, rules and supervision. 

“If we compare it with the G20, which are the countries of the world's 20 largest economies, in which Brazil is the eighth largest economy today, only Indonesia and Brazil have not yet legalised gambling and betting. Even Saudi Arabia, which is a Muslim country, did so recently; a country with almost absolute restrictions. Not even alcohol is allowed to be sold in Saudi Arabia, just to give you an idea. And they have also regulated gambling and responsible betting”, Irajá compared.

Today Brazil receives around 6 million foreign tourists a year, behind Latin American countries like Argentina, which receives 7.4 million tourists a year. Proponents of legalising gambling argue that Brazilian tourism would receive a significant boost.

According to the Ministry of Tourism's National Secretary for Infrastructure, Credit and Investment, Carlos Henrique Sobral, the expectation is that if the proposal becomes law, Brazil will generate more than 650,000 jobs and have an increase of USD 13.39 billion in revenue.

He commented: “We're going to have an investment of USD 11.94 billion, more than a 1,000% increase in investment. And GDP, from 8%, we'll reach 9.2% or perhaps double digits, which is our target. The tendency is, with these integrated resort destinations, to achieve economic development, with Las Vegas, Macau and Singapore being emblematic.”

Agência Senado