Brazil’s gambling legalization bill set to return to senate agenda despite heated debate

A long-anticipated bill to legalize gambling in Brazil is expected to reappear on the Senate’s legislative agenda in the second half of the year, reviving a contentious national debate over the economic potential and social risks of expanding gaming activity.

The proposal seeks to formally authorize and regulate casinos, bingo halls, horse race betting, jogo do bicho, and online gambling platforms, effectively overturning Brazil’s long-standing prohibition on gambling, which has been in place since 1946. In doing so, the legislation would also amend the Misdemeanor Penal Code, removing criminal penalties currently tied to gambling-related activities.

In addition to legalizing operations, the bill includes provisions for creating a comprehensive system of regulation and oversight. The framework would be designed to ensure transparency and security, while also addressing financial crimes such as money laundering and terrorist financing. 

Supporters say the measure could spark regional economic development, boost tourism, generate employment, and pave the way for large-scale investments in tourism infrastructure, including hotels and convention centers.

Senator Irajá (PSD-TO), the bill’s rapporteur, addressed the potential benefits of bringing a historically clandestine sector under government control. “By legalizing, we will, in fact, be giving light to an activity that operates in the shadow of the law, but with the control of the public power, with the supervision of the control bodies, where the Brazilian population will be able to collect taxes that will be transferred to the states and municipalities,” he said. 

“Millions of jobs will be created, and billions of reais will be invested in the construction of these large tourist complexes. And of course, all of this will boost the national tourism sector.”

If enacted, the Ministry of Finance would take charge of establishing rules for licensing, inspection, and authorization of gambling operators. The bill also includes mechanisms for addressing gambling-related disorders through public policies focused on prevention and treatment.

Despite these promises, the proposal faces firm resistance from some senators and influential groups within the National Congress. Opponents warn of serious social consequences, including the risk of family debt and a rise in compulsive gambling. Senator Eduardo Girão (Novo-CE) voiced concerns about the widespread reach of the gambling industry across different age groups.

“It’s a situation that’s driving people to the brink, and Brazilians can no longer bear the debt caused by gambling. If the sportsbooks cover people up to 49 years of age, bingo and casinos cover the rest, from 49 to old age, the elderly,” he said.

The evangelical caucus in Congress continues to be a major source of opposition, citing moral and social risks tied to legalized gambling. Although the proposal was placed on the Senate’s agenda in July by President of the Senate Davi Alcolumbre, it was not brought to a vote due to a reduced quorum, division among senators, and requests from party leaders.