In 2018, a law was passed in Brazil allowing sports betting sites, which have since become sponsors of almost all major men's and women's football teams. However, market regulation has not yet been implemented, which means that companies operating in these locations do not pay local taxes and operate outside of Brazil.Although gambling, such as bingos and casinos, are prohibited in Brazil, the Lula government's decision to regulate the taxation of sports betting has reignited the discussion about the legalization and regulation of these sports. Businesspeople argue that these activities are still widespread throughout the country, even illegally, but without generating revenue for the public treasury.
The president of the Federal Senate, Rodrigo Pacheco, recently mentioned in an interview with the BBC that the legalization of gaming is an option for Brazil to raise funds. A bill legalizing gambling was approved by the Chamber of Deputies in 2022 and awaits a vote in the Senate. The president of the Chamber, Arthur Lira, is a strong supporter of legalization.
“Gaming is an extraordinary source of jobs, an extraordinary source of income. It exists throughout the country, in all cities in Brazil and we do not regulate it,” said Pacheco, who highlighted the urgency of the matter: “We want to speed up the vote on whether all these projects that generate revenue and one of these projects will legalize gambling, which has already been approved in the Chamber.
Pacheco said that a bill to legalize gambling will be put on the agenda for a vote in the next two months. However, legalization faces strong opposition in areas of Congress, mainly from the evangelical group, which wants to maintain the prohibition.
According to the Brasilcasinos.com.br lawyer, although the basis for many is their religious dogmas, Brazil is a secular state, where the only rule that guides the most diverse matters, including gambling, must be the public interest.
The ban on gambling began in 1946, during the government of Eurico Gaspar Dutra, under the argument that it would be harmful to morals and good customs. At that time, casinos operated in Brazil and were popular entertainment venues, offering shows and restaurants.
However, this argument for banning casinos has already been conveyed through religious channels, due to the influence of the First Lady, Carmela Telles Leite Dutra, inspired by her strong devotion to the Catholic Church.
Currently, restrictions on casinos are prevalent in many Islamic countries, including Indonesia and Saudi Arabia. However, Brazil is one of the few non-Islamic countries, along with Cuba and Iceland, that also prohibits casino operations on its territory.
Given this scenario, the sector attributes the delay in regulation to the opposition of conservative groups, mainly evangelicals, which was widely heard by former president Jair Bolsonaro. However, the new government is eager for sources of revenue to finance increased spending and social actions, as promised by President Luiz Inácio Lula da Silva.