Brazil: Casino legalization debate draws cautious support from São Paulo trade federation

The Federation of Commerce of Goods, Services, and Tourism of the State of São Paulo (FecomercioSP) has issued a formal technical opinion on the proposed legalization of casinos in Brazil, advising lawmakers to proceed with caution and comprehensive regulatory planning. While acknowledging the potential economic advantages, including increased tax revenue and growth in tourism-related sectors, the organization added that any approval must be contingent upon strict oversight and well-defined legislation.

The proposal, which is currently under debate in Brazil’s National Congress, could open the door to casino operations across the country. According to FecomercioSP, international case studies show that, when properly managed, casinos can stimulate the development of adjacent industries such as hospitality, gastronomy, entertainment, and retail.

These sectors, in turn, help expand employment opportunities and generate new income streams. However, the Federation warned of potential risks if the activity is introduced without a robust regulatory framework. These include economic distortions, social harm, and exposure to criminal activities such as money laundering.

FecomercioSP’s technical document highlights several key requirements for a responsible rollout, including clear and coherent tax rules to prevent double taxation and legal ambiguity.

Another major concern is the social impact of gambling, particularly on vulnerable populations. The Federation called for a detailed assessment of risks related to household indebtedness and gambling addiction. It also underscored the importance of incorporating casinos into broader tourism strategies, supported by infrastructure investments that promote local and regional development, rather than isolating casino activity as a standalone attraction.

“FecomercioSP supports measures that strengthen the business environment and promote income generation, but believes that the legalization of casinos in Brazil must be accompanied by clear rules, regulatory predictability, and social protection mechanisms,” said Guilherme Dietze, president of the Federation’s Tourism Council, as reported by Games Magazine Brazil.

The organization intends to deliver its institutional position to congressional representatives tasked with reviewing the proposal.