Brazil senate postpones land-based casino vote once again
The vote on whether to legalise land-based casinos in Brazil has been postponed yet again by the senate.
Senate President Davi Alcolumbre announced he was taking the vote on casino bill PL 2,234/2022 off the agenda on Tuesday, in another blow to proponents of land-based betting in Brazil.
Over a year has now passed since the Justice and Citizenship Committee approved PL 2,234/2022, with the senate vote the final step before it would fall upon President Luiz Inácio Lula da Silva to sign it into law, which isn’t expected to be an obstacle.
Alcolumbre cited the low attendance in the plenary, with only 56 senators present and a number of key opponents of land-based betting absent from the plenary session.
“There is certainly a division in the senate on this issue,” Alcolumbre said. “Given the quorum of 56 senators, the significant divergence on this matter and the requests from senators who would like to be present for the vote, this presidency will withdraw this item ex officio.”
It’s not yet clear when PL 2,234/2022, which would legalise land-based gambling verticals such as casinos, bingo, jogo de bicho and betting on horseracing, will return to the senate’s agenda, with the next parliamentary recess coming up on 17 July.
Brazil’s long wait for land-based casino legalisation continues
Brazil enforced a nationwide ban on gambling in 1946, but the country launched its licensed online betting market on 1 January this year.
But the wait for legal land-based betting rumbles on, as it faces strong opposition from multiple senators who voiced their concerns over its authorisation in Tuesday’s plenary session.
Alcolumbre’s decision to postpone the vote highlights the deep political divide over gambling in Brazil, with its supporters claiming land-based legislation could provide huge economic benefits, while opponents are largely concerned with the social fallout of betting.
Senator Eduardo Girão has perhaps been the most vocal opponent of gambling in Brazil, and on Tuesday he celebrated the withdrawal of PL 2,234/2022, claiming the population was concerned.
Girão would like to see the bill forwarded to three committees to explore the impacts of legalisation and study potential increases in addiction levels and criminal activity relating to gambling.
He views the online sector’s legalisation as an error, saying: “The betting houses have shown that it was a mistake for this house to regulate them.
“Making a mistake once is understandable, but making a mistake twice is not. The senate needs to have a minimum of sensitivity and reject this.”
Senators Humberto Costa, Plínio Valério and Chico Rodrigues also voiced their opposition, citing impacts on the population’s mental health and family debt.
Rodrigues argued any economic benefits are cancelled out by the impact of gambling on other sectors within the economy, such as retail.
“Taxes collected through the legalisation of gambling are no longer collected from other economic activities, since families stop consuming and start spending on gambling,” Rodrigues claimed.
Vote postponed despite national survey
The vote’s postponement comes despite the vast majority of the population seemingly supporting land-based gambling. A recent state-supported survey reported 60% of the Brazilian adult population is in favour of land-based legalisation.
In April, the DataSenado Research Institute found just 34% of the 5,039 Brazilian men and women aged 16 or over surveyed were against the bill’s approval.
With some estimating legalisation could provide around BRL20 billion ($3.5 billion) in annual revenue, 58% of those surveyed by DataSenado agreed a licensed land-based sector would increase tax collection in Brazil.
Additionally, 44% said land-based legalisation would increase the number of jobs in Brazil.
Pressure on the online sector perhaps a contributing factor
The introduction of the online sector has been marred by political criticism and media scrutiny, which some believe could have led to the delays in land-based legalisation.
Just over six months has passed since the legal online market went live and already it appears the industry will be facing new ad restrictions and an increase in operator tax rate to 18%, which would take the total tax burden to around 50%.
Senator Girão claims recent media coverage of online betting-related money laundering is evidence the land-based form shouldn’t also be authorised.
“You can read the headlines of O Globo, Estadão and Folha recently, showing that organised crime has never laundered so much money, never made so much profit from the advent of gambling,” Girão argued. “And what is the problem in Brazil today? Basically, it is public safety.
“The Lula government, which claims to protect the less fortunate and the poorest, can fix this mistake of betting by absolutely not allowing any more gambling to take place.”