A new law proposed by Celso Sabino, Brazil’s Tourism Minister, could make all sorts of in-person gambling legal sometime in the next few months.
The proposed legislation, Bill 2234/22, would allow casinos, bingo halls, horse racing parlors, and jogo de bicho lotteries throughout the country. Sabino hopes that the bill would add as much as $3.5 billion in annual revenue and create up to a million new jobs.
If passed, the bill could create thousands of new jobs and increase government revenue, but concerns persist that it could lead to an increase in addictive behavior or even criminal activity if it’s poorly regulated.
Inside the Bill: What’s Actually Changing
The bill would legalize a limited number of in-person casinos, as well as bingo halls, jogo de bicho-style lotteries, and horse race betting.
Casinos wouldn’t be allowed to spring up just anywhere, however. They would be restricted to integrated resorts, with a maximum of one per state. An exception would also be granted to larger territories, which would be allowed to host up to three such resorts.
A 17% tax on gross gaming revenue would be established, as would a 20% levy on gambling winnings.
Unlike online casinos, payment providers would also be restricted, as neither cash nor Pix would be allowed. Instead, gamblers would be forced to use credit cards to fund their activities.
This naturally creates concerns about problematic gambling behavior. Public opinion has consistently been in favor of legalized gambling, however, and the bill is expected to pass with little opposition.
What’s Driving the Push to Legalize Gambling in Brazil?
After seeing its tourism industry decimated by the COVID-19 pandemic, Brazil has bounced back strong in recent years, including attracting a record number of international visitors in 2024.
Sabino hopes that, by adding legalized in-person gambling options, the country can capitalize on this growth while continuing to expand. “As a government body focused on tourism development, we support the proposal, as do other ministries. We want to attract more visitors and encourage domestic travel,” he said.
The bill marks the latest move in what’s been a historic shift in the country’s view of gambling, which has long forbidden most games of chance.
However, online betting became legal in the country as of January 1, and it’s been a smashing success, generating billions in revenue in just a few short months.
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Why This Matters (To Brazilians and Tourists Alike)
According to Sabino’s projections, the bill would create billions in revenue, up to a million new jobs, and fund the construction of up to 10,000 health clinics and 200,000 low-income houses every year.
The bill would also aim to curb illegal underground operating rings, although some critics argue that, without strict oversight, it could just allow these organizations to operate in plain sight.
Building multiple casino-resorts would also create strong incentives for tourists to visit, especially if the revenue generated from these establishments was used to improve local infrastructure.
Games like slots, horse racing, and bingo are already culturally familiar to residents, and integrating them into tourist attractions could have strong appeal to visitors who enjoy gambling but still want an authentic Brazilian travel experience.
Looking Ahead: Can Brazil Pull This Off?
The bill is expected to be voted on as early as July, and if passed, it could be a watershed moment for Brazil’s economy and tourism.
Revenues from gambling activities could fund infrastructure improvements, low-income housing, and much more, helping to further cement the country as the preeminent tourist destination in South America.
Success is far from assured, though, and much work will need to be done after the legislation is enacted. Proper oversight and regulation is necessary to ensure that the fruits of this bill are distributed fairly, rather than being a boondoggle for the corrupt and connected.
Critics will be looking for spiraling addiction numbers or increased corruption. Supporters will be monitoring job creation numbers and foreign investment stats.
It’s a big gamble. Based on the talk from Minister Sabino and other supporters, though, it appears that Brazil is definitely all-in.