Brazil launched its regulated online betting market on 1 January, although the bill to legalise land-based casinos was pushed back on a number of occasions in 2024, raising questions around whether brick-and-mortar gambling would also become regulated.
PL 2,234/2022 to legalise casinos, bingo, jogo de bicho and betting on horseracing was approved by the Justice and Citizenship Committee in June, passing narrowly on a 14-12 vote.
However, it has still not been voted upon by the senate, with the latest delay coming on 4 December, when senator Irajá Silvestre withdrew the bill following a debate over the proposal.
Senate president Rodrigo Pacheco said at the time the bill would be voted on in 2025 and Sabino expects this to happen within the next few months.
“The bill regulating casinos has already been approved in the chamber of deputies and is in the senate,” Sabino told M&E. “We expect it to be approved and sanctioned by the president in the first half of 2025.”
Economic benefits of land-based casinos in Brazil
With a 12% tax rate on gross gambling revenue (GGR) for online betting, as well as a number of other contributions, Brazil is set to have one of the highest tax rates on gambling in the world.
Considering the huge size and potential of the market, too, it appears Brazil’s government will benefit hugely from an economic perspective.
Brazil is already the target of international investment for the online sector with giants such as Bet365 and BetMGM making their entrance this year.
With land-based legalisation also seemingly on the horizon, Brazil could yet see further international interest from companies such as Hard Rock International.
Hard Rock’s corporate senior vice president of casino and hotel operations Alex Pariente previously told iGB the operator’s global experience with gambling venues will set it up for success in Brazil when the market opens up.
“The company has the ability to create relationships with local entrepreneurs, whether those are construction companies or banks or [gambling] brands,” Pariente explained. “We love this partnership in destinations where we intend to put our projects.
“I can only imagine it would be the same in Brazil. We’re not coming there to impose our will or whatever. We’re coming there just to build the perfect team that will ensure we’re going to have a successful property that will serve the purpose that both the government and the company are pursuing.”
Opposition to land-based casinos
In H2 2024, online gambling faced huge scrutiny in Brazil over fears it has had huge economic and social impacts on the population.
The online sector was criticised for its perceived effect on consumer spending habits, particularly among vulnerable groups such as those on the Bolsa Família social welfare programme.
Land-based legalisation is also facing backlash, with Senator Eduardo Girão noting in December: “We had a signal from the betting companies, which we approved exactly one year ago here and we made a mistake and the mistake is there: lives destroyed. And we cannot take another step, make another mistake, which could cause more problems than solutions.”
However, key stakeholders such as Silvestre and Sabino remain confident the bill will be approved, claiming legalisation will instead foster a safer environment for bettors by stamping out the black market.
Original article: https://igamingbusiness.com/casino-games/land-based-casino/brazil-land-based-casinos-h1-2025/
