Tourism Minister Celso Sabino in Brazil is optimistic about the potential boost to tourism that legalizing land-based casinos could bring to the country. While Brazil gears up to launch its regulated online betting market in 2025, the fate of legalizing land-based gambling with PL 2,234/2022, which includes casinos, bingo, jogo de bicho, and betting on horseracing, remains uncertain pending a vote by the senate.
The bill was approved by the Justice and Citizenship Committee in June with a slim 14-12 vote, and now awaits further action in the senate. Senator Irajá Abreu believes he has the necessary votes to push the bill through, but as we approach October, the bill remains in limbo.
The economic benefits of legalizing online gambling are already evident, with 127 digital license applicants vying for a piece of the market. The Brazilian government stands to gain over BRL3.8bn from license fees alone. However, the potential economic advantages of land-based gambling are still up in the air with PL 2,234/2022 in the balance. Sabino argues that legalizing brick-and-mortar betting is essential for boosting tourism in Brazil.
Estimates suggest that approving PL 2,234/2022 could generate around BRL20bn in revenue annually. While Sabino believes this figure may be lower, he anticipates that legalizing land-based gambling could help shift focus away from Brazil’s main tourist hotspots and bring much-needed economic growth to smaller destinations like Olímpia in São Paulo.
Sabino emphasizes the importance of clear regulations to protect players, stating, “People who enter the casino area will be identified and there will be controls. Anyone identified as having this compulsion will not be allowed to access the areas.” He is confident that the bill will pass, citing minimal opposition to land-based legalization within the government.
The timeline for the bill’s approval is uncertain, but Sabino is hopeful that it will pass around the municipal elections on October 6. Once approved by the senate, it will be up to President Luiz Inacio Lula da Silva to sign it into law, a step that industry experts believe will proceed smoothly.
Alex Pariente, corporate senior vice-president of casino and hotel operations at Hard Rock International, echoes Sabino’s sentiments about the positive impact of legalizing land-based gambling on Brazil’s tourism sector. Drawing parallels to the Dominican Republic, where Hard Rock operates an integrated resort, Pariente highlights the vast potential for Brazil to attract tourists with the right tourism strategy in place.
“Brazil is an absolute beautiful country and very diverse,” Pariente notes. “There’s absolutely everything there is to see in Brazil, but yet we don’t have a clear tourism policy that has been developed and has been sustained that can be consistent with attracting tourists into the country.”
In conclusion, the legalization of land-based gambling in Brazil has the potential to not only drive tourism but also boost the economy and revitalize smaller tourist destinations. With careful regulation and government support, the casino industry could become a key player in Brazil’s tourism landscape.
