The Senate discussed the positive impacts that legal casinos and other forms of land-based gambling could bring to Brazil.
Senators talked extensively about economic benefits such as new taxes and job creation. The discussion also turned to potential negative impacts and how to mitigate issues such as gambling addiction.
However, despite the debate, according to CNN, the vote may be postponed until October, as the first round of municipal elections is scheduled for October 6.
Brazilian Casinos: Debate Happened, but No Vote Yet
The debate took place on Thursday as scheduled. However, since no vote was conducted, it is still unclear whether the vote will indeed be postponed to October or if it could be completed in the coming weeks.
During the discussion of a proposal first submitted to the House of Representatives in 1991, gambling critics like Eduardo Girão pointed out that the potential increase in gambling addiction is a major reason for the illegality of casinos.
Senators Raise Addiction Issues
Girão claimed that gambling "completely destroys" the lives of citizens and cited a study by American professor Earl Grinols, which claims that for every dollar taxed on gambling, the government spends three dollars to address social problems caused by gambling.
"Do you know the consequences of gambling leading to suicide?" Girão said. "The suicide rate among gambling addicts is 12 times that of normal people."
"Gambling is a money-making industry. About 40% of casino revenue comes from gambling addicts. How could they quit? They won't."
Senators Damares Alves and Pastor Silas Malafaia agreed with Girão about the concerns regarding addiction levels, while also expressing concerns about the potential increase in organized crime and money laundering activities.
Can Regulation Mitigate Potential Negative Impacts?
However, Senator Irajá responded to these concerns, stating that they had been considered when drafting the proposal.
Banning the use of credit cards, allowing payments only through Pix or debit cards, is one step taken. Rules will also be established to prevent bank loans from being used for gambling, to minimize the dangers of gambling harm.
Gambling and betting regulation expert Leonardo Henrique Benites de Prado sympathized deeply with concerns about gambling addiction.
However, he also defended the industry's efforts to address such issues through regulation.
"Gambling addiction affects only a small part of society"
De Prado stated: "The problem of gambling addiction affects only a small part of society, and we cannot restrict the freedom of the vast majority because of a few people with issues."
"About 12.5% of drinkers are alcoholics. This number is many times higher than that of gambling addiction issues."
To alleviate concerns about money laundering, Irajá emphasized that cash payments are not allowed and digital betting methods are strictly monitored.
"The entire process is subject to auditing, as it has a foundation and can be monitored by regulatory bodies such as the Federal Revenue Service, Federal Police, and all other entities that wish to establish a transparent relationship with this financial flow in some way," Irajá explained.
Economic Benefits of Brazilian Casinos
Irajá also pointed out the economic benefits achieved by other countries that have legalized gambling.
For example, he noted that the G20 is an alliance of the world's 20 largest economies. Among these 20 countries, only Brazil and Indonesia (a predominantly Muslim country) have not yet legalized gambling.
The economic benefits are reflected in the growth of the tourism industry. Carlos Henrique Sobral, Secretary of State for Tourism Infrastructure, Credit, and Investment, estimates that legal casinos in Brazil will create 650,000 jobs and increase revenue by 74 billion reais (£10.4 billion/€12.2 billion/$13.3 billion).
Hotels will also benefit from the legalization of casinos. An amendment by Irajá allows hotels to add casinos and bingo halls.
Lucas Gabriel Barbosa, Government Relations Manager of the Brazilian Event Promotion Association (Abrape), is very hopeful to see this change implemented and the bill passed.
"I want to say that it is this assurance that will bring all the benefits to the event chain," Barbosa explained. "It is this assurance, with the passing of Bill No. 2,234, that the Brazilian event industry has gained a favorable position and enthusiasm."
But When Will Senators Vote on Brazilian Casinos?
Senate President Rodrigo Pacheco prioritizes issues such as taxation and national debt over the gambling bill.
In the debate, he stated that the bill needs further discussion to fully analyze the pros and cons of legalizing casinos.
Pacheco said: "We must carefully assess the potential benefits, such as creating jobs and increasing revenue for Brazil, but also carefully evaluate the risks and challenges, including preventing money laundering and combating organized crime, as well as social and public health issues related to gambling addiction."
This indicates that further debate will occur before the bill is put to a vote. The October timeline may soon become a reality.
