Brazilian Senator Irajá Silvestre Delays Vote on Land-Based Casinos
Last week, Brazilian Senator Irajá Silvestre, affiliated with the PSD party representing Tocantins, announced that the time is not yet ripe for the Senate to vote on the legalization of land-based casinos in Brazil. This pronouncement marks another postponement in a saga that has seen the proposed vote stalled at least twice already. Originally scheduled for August, the anticipated vote was pushed to October following municipal elections, but legislative progress appears to have faltered once again.
The Land-Based Casino Bill: Background and Context
The proposed legislation, known as PL 2,234/2022, seeks to regulate the operation of land-based casinos, as well as popular betting activities such as "jogo de bicho" (a type of illegal lottery) and wagering on horse racing. If passed, estimates suggest that the approval of this bill could generate approximately BRL20 billion (over USD 4 billion) in annual revenue for the Brazilian treasury.
As the rapporteur of the bill, Senator Silvestre expressed cautious optimism about its eventual passage. “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,” Silvestre stated at a recent business event in Sao Paulo on October 18.
Political Climate and Industry Perspectives
Despite the assurances from Senator Silvestre, the political climate remains uncertain. He highlighted ongoing discussions with Senate President Rodrigo Pacheco, both agreeing that the timing is not right for the vote on land-based casinos. This sentiment reflects a broader unease among legislators regarding public opinion and the potential social impact of legalized gambling.
In contrast, representatives from the land-based casino industry feel that now is the opportune moment for legislative action. Alex Pariente, Senior Vice President of Casino and Hotel Operations at Hard Rock International, emphasized the need for resolution, stating, “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.”
Online Betting Preparations Intensify
As discussions about land-based casinos stall, the Brazilian government is diligently preparing for the expected launch of a licensed online betting market, set to commence on January 1, 2025. This move has stirred considerable debate regarding the implications of online gambling, particularly concerning its impact on vulnerable populations, including the elderly and those on state benefits.
President Luiz Inácio Lula da Silva is anticipated to address these concerns publicly, alongside several other bills designed to mitigate potential negative effects. The government’s Secretariat of Prizes and Bets (SPA) recently took decisive action by publishing a list of more than 2,000 operator domains that have been blocked for failing to secure licenses by the September 30 deadline. Notable brands, such as Flutter’s Paddy Power and Entain’s Bwin.com, were included in this list, although they have applied for licenses for other brands.
Industry Requires a "Political Makeover"
Senator Silvestre’s remarks extend beyond legislative logistics; they signal a recognition of broader criticisms aimed at the gambling sector. The Senator argues that the gambling industry "needs a political makeover" to gain greater acceptance among the public. At the business event, he stated, “The sector will come out much stronger from this phase we are facing in terms of public opinion,” indicating a belief in the potential for a revitalized approach to gambling legislation.
The initial coverage of the postponed vote first appeared in Veja, a notable Brazilian weekly magazine. The proposed gambling bill encompasses more than just land-based casinos; it also aims to legalize bingo halls and legalize betting on horse racing.
Conclusion
The ongoing discussion surrounding the legalization of land-based casinos in Brazil puts the spotlight on a complex interplay of political, social, and economic factors. While Senator Irajá Silvestre remains hopeful for a successful vote this year, significant hurdles remain in terms of public sentiment and political readiness. As the government prepares to launch its online betting market, the future of Brazil’s gambling landscape hangs in a delicate balance, awaiting clearer political direction and public acceptance.
