Brazil: Many Obstacles on Path to Legal Gaming

A bill that would legalize gambling in Brazil, recently passed by the Chamber of Deputies, will likely meet with more opposition in the Senate. Some lawmakers have asked for “more discussion” of a measure originally filed in 1991, but Senator Angelo Coronel (l.) believes it will pass.

Brazil: Many Obstacles on Path to Legal Gaming

Legislation that would legalize gambling in Brazil, though recently approved by the Chamber of Deputies, will likely move more slowly in the Senate.

According to Games Magazine Brasil, lawmakers from different parties are using “cautious speech on the subject.” House President Rodrigo Pacheco recently said the proposal “will follow the normal procedures, always guided by a broad discussion, as was the case in the Chamber.” Some lawmakers claim the bill “needs more discussion,” even though the initial bill was filed in Congress in 1991.

Senator Angelo Coronel believes that the bill will succeed but it’s going to take some convincing.

“There are some resistance blocks,” he explained. “It will be necessary to show that legalization will be beneficial for the Brazilian economy. That’s what I’ve been doing, showing not only the high capacity to generate jobs, but also the possibilities of tax revenue for the public coffers.”

Senate leader Nelsinho Trad of the Social Democratic Party (PSD) said, “The topic requires a broad and in-depth debate and we are going to dedicate ourselves to studying the project within the PSD.”

According to GMB, “When an issue does not find consensus, the custom in Congress is to make it wait, even avoiding its rejection.” Many senators say it’s unlikely the issue will be resolved this year.

Senator Esperidião Amin said he “does not see with sympathy” the proposal. “I don’t consider this project a priority. So I didn’t even devote my attention to it,” he said.

Religious leaders are strongly opposed to gambling, for fear they will exacerbate social problems such as crime, prostitution, gambling addiction and money laundering. In their opinion, any boost in tax revenues and jobs aren’t enough to overcome the negative effects.

The deputy leader of the government, Senator Carlos Viana, shares that view. “International experience shows that large casinos are used for money laundering, drug trafficking and prostitution. The inspection of this sector is very difficult,” said Viana.

Coronel believes in the end, the bill will pass.

“I remain optimistic,” says. “We need to look for alternative sources of revenue and legalization would be one of them. Furthermore, we cannot forget the creation of formal jobs and the increase in tourism.”

Even if a gaming bill passes, President Jair Bolsonaro has promised to veto any bill that crosses his desk. Congress then could muster votes to overturn any veto, but definitive action is unlikely this year.

“I think it is very difficult. And I believe that if you vote this year, everyone will lose,” said Senator Paulo Paim.

Coronel doesn’t believe that Bolsonaro will veto the bill.

“I have doubts about the veto, because Brazil needs new resources to pay for social programs and the taxes collected from gaming will contribute a lot,” he told GMB.

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