According to Celso Sabino, the minister of tourism, a vote to legalize casinos in Brazil is expected to take place in the first half of 2025. If passed, it could pave the way for Brazil to become the leading casino destination in South America.
In June 2024, the Justice and Citizenship Committee approved PL 2234/2022 by a 14-12 vote, legalizing land-based casinos and horse racing betting in Brazil.
However, the legislation has yet to be voted on by the Senate following the delay in the casino modernization bill that occurred on December 4, 2024. Senator Irajá Silvestre withheld the proposal from proceeding after a heated debate.
Ridro Pacheco, Senate president, announced that the bill will be voted on in early 2025, with the official vote likely to occur in the following months. In an interview with M&F, Sabino said: “The bill regulating casinos has already been approved in the chamber of deputies and is [currently] in the Senate.
“We expect it to be approved and sanctioned by the president in the first half of 2025.”
Several casino businesses have already made plans ahead of the regulated market launch. Amusnet secured certification in Brazil in late 2024 to lay the groundwork, hoping to become one of the country’s biggest players.
Likely impact of land-based casinos in Brazil
Land-based casinos can promote economic growth because Brazil’s tax rate is amongst the highest globally. For online betting and casino games, the tax rate takes 12% of gross gambling revenue (GGR).
The country has also seen international investments in the online sector, with industry giants such as Bet365 recently bringing online casinos and sports betting to Brazil. It is also speculated that Brazil could attract interest from companies such as Hard Rock International.
In an interview with iGB, Alex Pariente, Hard Rock’s corporate senior vice president of casino and hotel operations, said: “The company has the ability to create relationships with local entrepreneurs, whether those are construction companies or banks or brands.
“I can only imagine it would be the same in Brazil. We’re not coming there to impose our will or whatever.
“We’re coming there just to build the perfect team that will ensure we’re going to have a successful property that will serve the purpose that both the government and the company are pursuing.”
Challenges to land-based casinos
The proposal for land-based casinos in Brazil has been criticized for its concerns about consumer safety. Concerns were raised about consumer habits, especially for more vulnerable groups.
The proposal has garnered significant interest, with Brazil’s Ministry of Finance confirming requests from nearly 150 companies. The legislation has seen increasing resistance based on economic and social risks as efforts ramp up.
In December, Eduardo Girão, federal senator representing Ceará, Brazil, said: “We had a signal from the betting companies, which we approved precisely one year ago here, and we made a mistake, and the mistake is there: lives destroyed.
“And we cannot take another step, make another mistake, which could cause more problems than solutions.”
