The push to legalize gambling in Brazil faces another delay as Senate President Rodrigo Pacheco (PSD-MG) signals he is in no rush to bring the bill to the plenary. The legislation, which seeks to legalize casinos, bingo, jogo de bicho, and betting on horseracing, will likely be postponed until after the first round of municipal elections in October.

Prioritizing State Debt and Tax Relief

Allies of Pacheco have confirmed that his immediate priorities are the renegotiation of state debts and compensation for payroll tax relief. These issues were highlighted as top priorities by President Luiz Inácio Lula da Silva (PT) during a recent meeting with the senator. Consequently, the gambling bill, already approved by the Chamber of Deputies, will take a backseat until these fiscal matters are addressed.

The delay is also influenced by significant pressure from the evangelical bench, which has prepared studies to dissuade senators from supporting the legalization of gambling. The evangelical group argues that gambling could increase addiction rates in the country and raise moral concerns. Additionally, the Ministry of Justice has expressed fears that the measure could facilitate money laundering activities.

Despite these concerns, President Lula has shown a favorable stance towards the bill, indicating his readiness to sanction it if passed by the Senate. The bill is supported by both the economic team and the political wing, with long-term projections suggesting that the legalization of gambling could generate up to R$22 billion in revenue for the federal government.

Upcoming Thematic Debate

A thematic debate on the gambling bill is scheduled for Thursday, August 8, chaired by Senator Irajá Abreu. This session aims to address remaining points of contention, including the strengthening of measures to prevent organized crime and money laundering. If the debate results in a decision to proceed, the bill could be voted on the following week. Otherwise, the vote will be deferred to after the municipal elections on October 6.

This delay occurs as Brazil progresses towards launching its regulated sports betting and iGaming market, expected to commence on January 1, 2025. The Ministry of Finance’s Secretariat of Prizes and Bets (SPA) has published final regulations clarifying which online games will be allowed and detailing monitoring, inspection, state allocations, responsible gambling, and sanctions.

While some see the postponement of the gambling bill vote as a setback, it underscores Brazil’s legislative bodies’ cautious approach to balancing economic benefits with social responsibility.

Sources:

“Pacheco não tem pressa para pautar PL dos jogos de azar.”, cnnbrasil.com.br, August 7, 2024.

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