Gambling Legislation

Brazil Casino Legalization Debate Restarting, but More Delays Possible

Brazil Casino Legalization Debate Restarting, but More Delays Possible
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Legislators have resumed discussions about land-based casinos, although a vote could be months away

The debate over legalizing casinos in Brazil is set to resume today, as the Senate takes up discussions on Bill 2,234/22. This bill, which seeks to modernize the country’s land-based gambling laws, has been in the works for years and aims to overhaul the outdated 1946 Decree Law that banned casinos from operating in Brazil. The proposed legislation would grant Brazilian states the autonomy to host gambling venues, including casinos, based on specific legal criteria such as population size and location.

Senator Irajá Abreu, the chief sponsor of the bill, will present the proposal to the Senate, urging his colleagues to support the modernization of gambling regulations. The bill outlines provisions allowing populous states like São Paulo, Rio de Janeiro, Minas Gerais, Paraná, and Amazonas to host multiple casino resorts. It also proposes a tax framework, including a 17% gross income tax on games and wagers and a 20% tax on winnings above R$10,000 (US$1,775).

Despite the restart of discussions, there is uncertainty about whether a vote will happen anytime soon. Reports suggest that Senate President Rodrigo Pacheco may prioritize other legislative matters, such as tax and state debt issues, over the gambling bill. This could lead to a delay in the vote, possibly pushing it back until after the first round of municipal elections in October.

Additionally, the bill faces opposition from evangelical groups within the Senate who express concerns over the potential rise in gambling addiction if the legislation passes. The debate will focus on ironing out these and other contentious issues, including measures to prevent organized crime and money laundering.

If the vote is postponed, it could be rescheduled for later this year, with the possibility of the bill being finalized and signed by President Lula da Silva, who has indicated his support for the legislation. For now, the future of casino legalization in the South American country remains uncertain, with an outcome that depends on the ongoing Senate discussions.

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