Senate Pulls Bill Amid Disagreements
The Brazilian Senate has postponed a crucial vote on legislation that would legalize land-based and online gambling, including casinos, bingo halls, horserace betting, online games, and the popular jogo do bicho.
Senate President Davi Alcolumbre removed the bill from Tuesday’s agenda, citing low attendance and significant disagreements among lawmakers. “The quorum is very low—56 senators. Due to a big divergence in opinion and the absence of senators, I will officially remove this from today’s agenda,” Alcolumbre said, according to the Gambling Insider.
The bill had already passed the lower house and the Senate’s Constitution and Justice Commission (CCJ), but it now remains stalled.
Opposing Views Highlight Risks and Benefits
Conservative senators strongly oppose the measure, warning that legalized gambling could fuel addiction and organized crime. On the other hand, supporters argue that regulation would generate economic benefits and help combat illegal gambling.
Senator Irajá noted, “The main benefit of the bill is to allow contravention to move into a regulated framework, reducing possible links between gambling and organized crime.”
Key Provisions of the Legislation
Under the proposed law, only companies headquartered in Brazil could operate gambling businesses, and all activities would be restricted to authorized locations. The bill would overturn a decades-old ban on games of chance, established by a 1946 law.
Meanwhile, Finance Minister Fernando Haddad has called for stricter taxation on betting platforms, signaling the government’s desire for a robust fiscal framework should the industry become legal.
In June 2024, the CCJ narrowly approved the legalization project in a 14-12 vote. Alcolumbre reportedly negotiated temporary replacements of two committee members to secure the needed votes.
Political Divide Persists
The proposal has support from Minister of Tourism Celso Sabino and centrist and pro-Lula parties such as União Brasil, PP, and PT. However, opposition remains strong, especially from former President Jair Bolsonaro’s PL party.
Several lawmakers have publicly criticized the bill. PT Senator Paulo Paim argued that legal gambling could cause severe social harm, citing risks of family disintegration, addiction, and suicide. Senator Eliziane Gama (PSD-MA), a member of the evangelical caucus, echoed these concerns, highlighting the country’s existing issues with electronic gaming addiction.
Scope and Taxes Outlined
Originally introduced in 1991 to legalize jogo do bicho, the bill has since expanded to cover other gambling forms, including casinos in resorts and on ships, bingo halls, video bingo, and slot machines.
Notably, the current version excludes online betting, which Brazil legalized in 2018 and regulated in 2023.
Key tax details include:
- Casinos would pay R$600,000 (US$110,023) every three months.
- Jogo do bicho operators would pay R$20,000 (US$3,667) quarterly.
- Fixed-odds betting companies already pay between R$54,000 (US$9,902) and R$1.9 million (US$348,405) monthly, depending on the model.
Unlike online betting, which requires a R$30 million (US$5.5 million) operating license, this bill does not impose such a licensing fee. License durations vary: five years for bettors, 30 years (renewable) for casinos, and 25 years for bingo operators.
Additionally, the bill would introduce Cide-Jogos, a 17% economic intervention tax on gross gambling revenue, with no deduction for prizes paid. Meanwhile, the federal government is considering raising the online betting tax from 12% to 18%.
Path Forward
The bill cleared the Chamber of Deputies in 2022 by a 246–202 vote and later passed the full Senate without amendments. However, it still awaits a final decision from President Luiz Inácio Lula da Silva.
