Brazil is going through what every municipality, state or nation goes through when gambling legalization comes into play, with lawmakers taking sides, for and against a legal industry.
Supporters of gaming in Brazil know the issue is far from settled after the Chamber of Deputies—equivalent to the U.S. House of Representatives—approved a far-reaching blueprint for gaming. The Senate still has to vote, and the result is far from a certainty.
Evangelicals have vowed to oppose the legislation and push for its defeat. And Brazilian President Jair Bolsonaro has pledged to veto any bill that lands on his desk. At that point, it comes down to whether Senate supporters can muster the votes to overturn the veto.
Should the bill pass and the text be approved as written, this is what Brazil may look like when it comes to gambling. A minimum of 43 casinos, 292 jogo do bicho sale points and 6,012 bingo and video-bingo halls. Add racetracks and stadiums and the number goes up, according to Games Magazine Brasil.
The number of casinos is based on population, whether in a tourist enclave, or on a boat. As calculated, São Paulo will be the state that may have the largest number with three; followed by Minas Gerais, Rio de Janeiro, Amazonas and Pará, with two each within tourist areas. Riverboat casino numbers are based on the length of the river, with a maximum of 10. That number could grow because in locations classified as natural or heritage tourist sites. A casino will be allowed regardless of the population density of the state, with a tourist casino no more than 100 km from a casino in a leisure complex.
The jogo do bicho rule allows one operator per 700,000 residents. São Paulo, the state would have the right to 66 points of sale, based on current population projections, followed by Minas Gerais with 30 points. Brazil can have 292 points legalized in the country.
Bingo is based on municipal population not state. So, one bingo is acceptable for every 150,000 residents, with 400 video bingo machines per establishment. It all comes down to 6,012 rooms. However, this number could grow, since the text also authorizes the exploitation in football stadiums with a capacity of over 15,000 fans (the country has about 115 that meet this condition) and in tourist areas.
All conjecture until the Senate succeeds. Senator Nelsinho Trad indicated the subject needs an in-depth look. Despite expected strong resistance, Alvaro Dias says a “powerful and shady scheme that could lead to approval” is at work. President of the Chamber of Deputies, Arthur Lira called the proposal a priority.
“Through the project, we will have the risk of money laundering from organized crime and even concerns of the most religious groups. We will have resistance in approving,” said the deputy leader of the government, Senator Alessandro Vieira.
Legalizing gaming may bring in revenue but with an increase in public health spending and fighting organized crime. “International experience shows that large casinos are used for money laundering, drug trafficking and prostitution. The inspection of this sector is very difficult,” said Senator Carlos Viana. Another opponent, Senator Luiz do Carmo, called passage an incentive to the moral degradation of Brazilians.
On the other hand, Senator Angelo Coronel defended the legalization of gambling, citing, in addition to revenue gains, job creation and opportunities to promote regional development and tourism. “The bluff I don’t accept is that of those who want to ignore the fact that gaming is already present in the daily life of Brazilians. Federal lottery, turf, online sports betting, and so many other forms of games, including illegal or clandestine. Outdated arguments put us on the side of only two G20 countries that still ban games for religious reasons.
According to Coronel, the legalization can result in almost 2 percent of GDP when it comes to taxes. At the same time, attention must be paid to the concerns of other senators with crime and social impacts.
In the Senate, even because of its more conservative profile, it is a topic that will demand a lot of debate, Coronel said. “I, in particular, think that we have turned off all the faucets of corruption in our country, and I am very afraid that with the release of gaming we are opening a faucet for those who have seen all faucets turned off.”
Evangelicals are intensifying pressure on the Senate. Senator Flavio Bolsonaro, the son of the president, as not defended the proposal, but took a trip to the U.S. in 2020 to talk gambling; he is unlikely to support the measure. Deputy Reginaldo Lopes said legalization could lead to tax evasion, money laundering. He also said the tax rate in the text of the legislation is too low.
