Brazil's gambling industry is about to undergo a significant transformation, as the Senate is preparing to review and vote on a crucial bill aimed at modernizing the federal law governing physical gambling activities in the country. This long-awaited reform, led by Senator Irajá Abreu, is expected to usher in a new era for the Brazilian gambling sector.
Senator Irajá Abreu, the designated drafter of Bill No. 2,234/22, is the proponent of this legislation. Abreu recognizes the need to update Brazil's outdated gambling regulations and has tirelessly worked to push the bill through the Senate's review process. The main goal of the bill is to repeal the decree issued by President Gaspar Dutra in 1946, which effectively prohibited casinos from operating in Brazilian municipalities and regions.
The bill's text has received very positive feedback, and major industry stakeholders have expressed their support. The president of the Legal Gambling Association (IJL), Magnho José Santos, and the president of the Rio de Janeiro State Lottery (Loterj), Hazenclever Lopes Cançado, both support the proposed reform. This widespread support highlights the general recognition that Brazil's physical gambling industry needs a modern regulatory framework.
Abreu emphasizes the importance of the Senate completing the review and voting on the bill by the end of September, noting that the upcoming municipal elections are a critical factor. By accelerating this process, the senator aims to avoid any potential conflicts or delays that the election schedule might cause. This sense of urgency reflects the growing momentum behind the reform and the desire to seize the opportunity to implement changes.
Although the origins of the bill can be traced back over a decade ago, initially drafted by Deputy Renato Vianna (MDB-SC), Abreu emphasizes that "the text of the bill has matured." This indicates that the proposal has undergone extensive refinement and deliberation, ensuring it effectively addresses the complexities of Brazil's gambling industry. The proposal's longevity, coupled with the current Senate's support.
The core of the proposed reform is the need to modernize Brazil's physical gambling industry. Abreu is confident in the Senate's ability to approve the bill and states that it will "provide the Brazilian people with a framework, a new business environment with clear rules, where we can invite sincere individuals to engage in an industry currently dominated and controlled by organized crime."
The push for these gambling reforms in Brazil also aligns with global trends and practices in other OECD and G20 countries. The Minister of Finance, Fernando Haddad, points out that about 90% of these countries have already regulated their gambling markets. By aligning its regulatory framework with international standards, Brazil aims to foster a more transparent and responsible gambling industry.
While the Labor Party government cautiously supports the passage of the bill, it also emphasizes that the priority is to launch the Brazilian gambling market—the framework will establish a federally regulated online gambling market by January 1.
The latest developments in Brazil's gambling reforms include the SIGAP Registration Center notifying the Awards and Betting Secretariat (SPA) and the Ministry of Finance that 113 operators have submitted license applications. This influx of interest highlights the country's repressed need for a regulated and legal gambling market, further emphasizing the urgency and importance of the upcoming Senate vote.
A key driving factor behind the proposed gambling reforms is the desire to address the issue of organized crime dominating the currently unregulated environment. Abreu stresses the need to "invite sincere individuals to engage in an area currently dominated and controlled by organized crime." By establishing a clear regulatory framework, the reform aims to promote a more transparent and responsible gambling industry.
