Brazil Set to Vote on Landmark Land-Based Gambling Legalization

Brazil is on the brink of a major shift in its gambling landscape as the bill to legalize casinos, bingo, jogo de bicho, and betting on horse racing nears a crucial senate vote. Industry insiders are optimistic that the regulation of these activities will finally be approved, following significant progress in recent months.

The push to regulate online sports betting and iGaming in Brazil is already in its final stages, with the legal market expected to launch on January 1, 2025. However, uncertainty remains about whether brick-and-mortar casinos and other land-based gambling activities will receive the same green light.

Progress of the Bill and the Push for Legalization

The bill, officially known as PL 2,234/2022, ed a significant hurdle in June when it was narrowly approved by the Justice and Citizenship Committee by a vote of 14 to 12. This narrow margin highlighted the contentious nature of the bill, but it successfully moved the proposal forward to the Senate plenary.

Initially, the Senate was expected to vote on the bill shortly after returning from recess on August 1. However, as September progresses, the bill has yet to be addressed. Despite the delay, there is a growing sense of urgency among legislators, driven by Senator Irajá Abreu’s persistent efforts to bring the vote to fruition. Abreu is confident that he has secured the necessary to ensure the bill’s age.

In a recent interview with Poder360, Abreu expressed his optimism, stating, “The text is ready to be assessed and voted on. I am convinced that we already have the votes to approve the project, which is important for Brazil.”

Industry leaders, including Alex Pariente, Corporate Senior Vice President of Casino and Hotel Operations at Hard Rock International, share Abreu’s belief that now is the opportune moment for Brazil to legalize land-based casinos. Pariente emphasized the need for coherent regulation, noting that unregulated gambling is already occurring and that formalizing the industry would provide better protections for bettors.

“I think we are at the point right now, again, anything can happen, but that everybody understands that it’s better for everybody to be given an opportunity to come up to the surface and formalize their businesses, contribute their taxes, and adhere to the responsible gaming practices to protect the population,” Pariente told iGB.

Pariente also highlighted the for the bill from key government figures, including Finance Minister Fernando Haddad and President Luiz Inácio Lula da Silva. Should the bill the senate, it would then require President Lula’s signature to become law—a step that Pariente believes is a foregone conclusion.

Challenges and Potential Roadblocks

Despite the progress, concerns linger about the narrow margin by which PL 2,234/2022 ed the committee vote. Some worry that this close call could indicate potential challenges in the broader senate vote.

However, Hugo Baungartner, Chief Commercial Officer at Aposta Ganha, remains confident that the bill will when presented to the full senate. He noted that the 14-12 vote occurred within a specific commission, and the broader senate may present a more favorable outcome.

“The 14-12 was in the particular commission,” Baungartner explained. “Now, going to the whole senate, it might be different. I think we have more votes in favor than against.”

Baungartner also pointed out that discussions about gambling often result in close votes within special commissions. However, he believes the wider senate presents more opportunities to secure the necessary .

Economic Benefits and Tourism Boost

One of the key arguments in favor of legalizing land-based gambling in Brazil is the potential economic benefits, particularly in boosting tourism. Pariente described tourism as the “backbone” of the case for land-based casinos, pointing out that Brazil’s tourism numbers lag behind those of much smaller nations.

For instance, the Dominican Republic, where Hard Rock operates an integrated resort, welcomed over 10 million tourists in 2023, compared to Brazil’s approximately six million. Pariente believes that the introduction of land-based casinos could significantly enhance Brazil’s appeal as a tourist destination.

“Brazil is an absolutely beautiful country and very diverse,” Pariente said. “There’s absolutely everything there is to see in Brazil, but yet we don’t have a clear tourism policy that has been developed and has been sustained that can be consistent with attracting tourists into the country.”

While Pariente praised the Brazilian government’s efforts to legalize land-based gambling, he also noted that some issues still need to be addressed. One of these concerns is Article 45 of PL 2,234/2022, which allocates 40% of revenue from electronic gaming and betting machines to the leasing company or manufacturer, with the remaining 60% going to the operator.

“That’s something that doesn’t sit very well with most of the big operators,” Pariente explained. “We need more clarity on what the article means.”

Should the bill , Hard Rock plans to leverage its extensive experience in integrated resorts to establish a strong presence in Brazil, particularly in the populous state of São Paulo. Hard Rock Chairman Jim Allen has already expressed the company’s intentions to build an integrated resort in the state, alongside a digital presence.

As Brazil edges closer to potentially legalizing land-based gambling, the industry is preparing for what could be a transformative moment. Pariente anticipates that Brazil could become one of the top three gambling markets globally, attracting international investment and boosting the economy.

While challenges remain, the potential rewards for both the industry and the Brazilian state are immense. If the senate vote goes as expected, Brazil could soon emerge as a major player in the global gambling market.

Source:

”Will the Brazil land-based casino vote get over the line?”, igamingbusiness.com, September 03, 2024.