Brazil’s Casino Legislation: A Political Game with No Winner Yet
Brazilian senator Irajá Silvestre (PSD-TO) recently expressed skepticism regarding the timing of the Senate’s forthcoming vote on land-based casinos, initially projected for this month. This announcement marks yet another delay in a legislative process that has been rife with anticipation and uncertainty.
A Pattern of Postponements
The push to legalize land-based casinos in Brazil has been met with numerous setbacks. This latest postponement is the second time the issue has been sidelined, following an earlier missed opportunity in August and a predicted October vote that has yet to materialize. The reluctance to proceed appears linked to the aftermath of municipal elections held earlier in the month, which may have left politicians reticent to engage in potentially divisive discussions.
Silvestre, who serves as the rapporteur for the bill, conveyed a sense of cautious optimism during a business event in São Paulo on October 18. He stated, “We are waiting for things to cool down a bit, but I am convinced that this year we will pass the bill. We already have the necessary votes, we have convinced the senators, at least the majority,” according to a report by Yogonet.
Financial Implications of Legalization
The stakes are high regarding the approval of PL 2,234/2022, a bill that could generate an estimated BRL 20 billion in revenue annually. The land-based casino industry stands poised to benefit immensely from this legislation, leading some industry representatives to argue that now is the opportune moment to push through the bill. Notably, Alex Pariente, Hard Rock International’s corporate senior vice-president, stated in September that he expects soon-to-materialize positive outcomes as debates in the Senate intensify.
“The debate has been very intense. I’ve been myself in the senate a couple of times, and I think it’s a very healthy thing to happen before we go into more concrete actions. I’m positive and I think you’re going to see results very soon,” he remarked.
Online Betting: A Polarizing Topic
As the discussion surrounding land-based casinos continues to swirl in political circles, the Brazilian government has been busy gearing up for the launch of a licensed online betting market set to commence on January 1, 2025. This impending shift has ignited debates over the potential social ramifications of liberalizing online betting, particularly concerning vulnerable populations such as the elderly and citizens reliant on social benefits.
President Lula is expected to address these critical issues, alongside a suite of other legislative proposals targeting the impacts of gambling. The Secretariat of Prizes and Bets (SPA) has already taken significant strides by publishing a list of over 2,000 online operator domains that have been blocked for failing to apply for a license by the September 30 deadline. Major industry players like Flutter and Entain found themselves on the list, illustrating the complex landscape of compliance and regulation that operators must navigate.
Despite the challenges, the approved list has been evolving, with 96 operators and 210 brands successfully obtaining licenses as of last week. Some operators have even initiated legal action against the SPA regarding their bans, showcasing the contentious nature of this emerging market.
The Call for a Political Makeover
In a call for reform, Irajá emphasized that the gambling industry requires a significant political makeover to become more acceptable to the Brazilian populace. He noted that despite the hurdles currently faced, “the sector will come out much stronger from this phase we are facing in terms of public opinion.” These remarks underscore a growing realization that societal attitudes toward gambling need to be addressed to allow for constructive dialogue and legislative progress.
Conclusion: Waiting for the Right Moment
The future of land-based casinos in Brazil remains uncertain, with a dependent relationship on the evolving political climate. The repeated postponements serve as a reminder of the complexities inherent in changing legislation, particularly in an area marked by public sentiment and controversy. As the industry calls for timely action, it faces an uphill battle against a backdrop of cautious senators and a public wary of the implications of expanded gambling. Only time will tell if the upcoming political environment will prove conducive to passing the long-awaited legislation, but the hopes for a robust gambling industry in Brazil are undoubtedly resilient.
1
20
20
