Gambling legalization in Brazil is progressing

About two weeks ago, the House of Representatives in Brazil voted in favor of legalizing many games of chance. This means that games of chance such as slot machines, bingo and also some online gambling games could soon be legalized in the largest country in South America. But why is Brazil deciding to legalize gambling right now?

Gambling legalization in Brazil is progressing

Step by step, the Brazilian government also seems to be going the way of legalizing gambling as far as possible. At the end of February, the House of Representatives in Brazil finally voted to legalize many games of chance.

These are said to include casinos, slot machines, bingo and certain online gambling games. As early as November 2020, around a year and a half ago, we wrote an article asking ourselves whether the gambling sector in Brazil would finally be legalized.

Gambling legalization in Brazil: Senate vote pending

Brazil is not only the largest country in South America, but also the sixth largest country in the world in terms of population. As things currently stand, the more than 211 million inhabitants will soon be able to legally participate in many games of chance. At the end of February, the Brazilian House of Representatives voted with a majority in favor of a bill to legalize further gambling. The law would mean that, for example, casinos, slot machines, bingo and even some online gambling games may be offered legally in Brazil.

After the House of Representatives has already given the green light, the Senate now has to vote on the submitted draft. If the Senate also approves the draft, only Brazilian President Jair Bolsonaro will have to give his approval. The problem: Bolsonaro has made it clear several times that he will not support such a law. In this case, however, the Senate has the option of vetoing it. In exceptional cases, a law can then be passed without the consent of the President.

Proponents of gambling legalization are certain that this step would benefit both tourism and employment in the country. Ultimately, the state could also expect significantly higher tax revenues. In the meantime, the House of Representatives had proposed setting a tax rate of 30% on gross sales for gambling activities. This high tax rate is reminiscent of the controversial 5.3% player tax that was introduced in German online casinos.

So far, only sports betting and state lottery games are allowed

At present, only horse and sports betting and state lottery games are permitted in the South American state. All other forms of gambling are prohibited – until now. The gambling world in Brazil could soon change fundamentally.

For example, the current draft law provides for three different types of gambling establishments in the country. In addition to integrated casino resorts, there should also be tourism casinos and even casino ships. Only in April last year did we report on a floating luxury casino in neighboring Argentina.

Conclusion

Almost a year and a half ago, we first reported on the Brazilian government’s plans to legalize various games of chance in the country. However, the House of Representatives did not agree until the end of February, so that only the Senate and the President now have to give the green light. It will be interesting to see when games of chance such as casinos, bingo and slot machines will finally be legalized in the South American country and whether player protection measures such as an autospin ban and a minimum playing time of five seconds will be introduced as in Germany.

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