Brazil Seeking To Remove Casino Gambling Ban

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Monday, July 11th, 2016 | Written by Shane Larson

Up until 1946, vacationers and locals could visit a number of casinos in Rio de Janeiro and other parts of Brazil in order to gamble. The Brazilian government subsequently passed legislation to make casinos illegal in the vast country of 200 million people, and so profitable properties, such as the Copacabana Palace that had been grossing $100 million in annual revenues, were shuttered.

Seventy years later, and the Brazilian government now seems poised to bring back the halcyon days of casino gambling, and many experts believe that legislation to legalize gambling in Brazil is imminent. Commenting on the development, Brazilian gaming analyst, Alexandre Fonseca, said:

“If you ask me what are the odds of Brazil becoming a global gaming destination within the next five to 10 years, I would say they are quite high.”

Part of a Trend

Throughout Latin America, countries are now considering legalized gambling, or have taken steps to make casinos, racetracks and slot parlors legal. Argentina, Bolivia and Mexico all either already have, or are getting closer to regulating gambling, and Brazil may be the next South American country to add its name to the list. With many Latin American countries struggling with organized crime and with limited financial resources, casino gambling seems beneficial on two fronts. Firstly, countries can tax the industry to bring in much-needed revenues, and secondly, legalizing gambling can reduce illegal gambling, which often helps to fund other types of crime.

The Brazilian Legislation

The Brazilian Senate has already introduced and passed a casino gambling bill known as PLS 186/2014, with a House version of the gaming bill (PL 442/1991) expected to be introduced soon. The two legislative bodies of the federal government would then have to reach a consensus before the legislation is signed into law by Brazilian Vice President Michel Temer. Here are some key points of the bill:

– The law would allow for 35 casino licenses to be issued in Brazil.

– Under the law, in order to operate a casino, a property would need to provide more than just gambling. They would also have to provide lodging and would need to operate restaurants and retail stores.

– Bingo halls would be allowed to open up around the country. The Brazilian government will issue one license for every 150,000 residents in a given city or municipality.

– Video bingo machines will also be legalized with a maximum number of 666,500 machines allowable in the country.

– Online gaming and a numbers game called ‘jogo do bicho’ (“the animal game”) would be legalized and regulated.

– If every license is applied for and every casino takes advantage of the maximum number of allowed slot machines on their casino floors, Brazil would have 70,000 slot machines, 25,000 more than the number found in the Las Vegas Strip.

Investors May Bet on Brazil

Brazil is already a popular destination for tourists who wish to experience Latin America. Many industry analysts believe that if the gambling legislation is successful that the country may quickly become a hot spot for gambling, and that tourism will increase even more. There are rumors that the Sands and the MGM Resorts are both potentially interested in opening Brazilian casinos. Analysts believe that if the law is passed this year that casinos may begin opening in Brazil as early as 2019.

In the meantime, there are some Brazilians concerned that the impact the casino industry may have on Brazilian society could be negative, with Congress member Pastor Francisco Eurico da Silva, warning:

“It’s very easy to think about taxes going to the public coffers. It’s forgetting how many families will lose, will be destroyed by those who.. take everything they have and play at the casinos.”

Nevertheless, others are more focused on the creation of new jobs. When casinos were closed in 1946, 40,000 Brazilians lost their sources of employment. It’s likely that 35 new casinos and the more than 1,000 allowable bingo halls would help create jobs for far more than 40,000 people. Legislation would also help to keep money wagered by Brazillians in the country, and as one hotel employee commented to americasquarterly.org recently:

“If you go to the first casino in Argentina, you’ll find more Brazilians than Argentinians. I’d love to be able to gamble in Brazil.”