Mandatory Establishment of Legitimate Casinos in Brazil
In a significant move towards economic recovery and tourism boost, Brazil is on the brink of legalizing land-based casino resorts and bingo halls. The proposal, which has been in the works for over a decade, is currently under consideration in the Senate.
The bill, already approved by the Chamber of Deputies, is expected to pass before the July recess. Senate President Davi Alcolumbre has deemed the bill urgent, signalling a positive outlook for its approval. If passed, the bill will be sent to President Luiz Inácio Lula da Silva, who is expected to sign it into law without resistance.
The legalization of these gaming facilities is projected to bring substantial benefits to the Brazilian economy. It is estimated that the new establishments could raise up to R$20 billion per year in taxes, significantly contributing to Brazil's economic recovery. Additionally, the proposal is expected to create approximately 1 million jobs, providing much-needed employment opportunities and stimulating local economies.
Tourism is another sector poised for a boost. Physical casino venues could reshape Brazil's tourism market, attracting both international and domestic visitors and potentially leading to further international investment. A Senate survey indicates that there is no significant resistance from the population to the legalization of gambling.
However, the proposal is not without challenges. Ensuring proper regulation and enforcement of these new establishments will be crucial to prevent illegal activities and address concerns about gambling harm. The emergence of land-based casinos will also face competition from the recently launched online gaming market, which has already seen significant growth in Brazil.
The online gaming sector is facing proposed tax hikes, which could impact the overall profitability of the gambling industry if similar pressures are applied to land-based operations. Maintaining public approval over time will depend on how well the industry is managed and regulated.
Politicians, including MP Jonga Bacelar, are calling for the establishment of land-based casino resorts and bingo halls. Jonga Bacelar has identified a test region in the state of Bahia, where the legal gambling market could be a great addition to the online casino of Bemslots.
The privatization of the sports betting sector in Brazil has already been initiated, accompanied by the licensing of international betting companies. The current Brazilian gaming reform includes the privatization of the sports betting sector, which aims to achieve higher tax revenues.
The development of an application process for licensing is to begin at the beginning of next year. Effective regulation of gambling would create legitimate employment and financial sources, potentially generating an additional 3 billion euros in taxes. Unregulated black market in gambling poses social dangers such as violence and gambling addiction.
The national tourism ministry, led by Marcelo Álvaro Antônio, has begun drafting an implementation plan for the legalization of land-based gambling. The construction of casino resorts is seen as a lucrative and sustainable economic opportunity for the struggling tourism sector, which has received around 154 million euros due to the Corona crisis, but this is not enough to prevent an economic disaster.
A large influx of tourists traveling to Bahia could be used to test new gambling regulations, with many indirect jobs and international cooperations being created by the legal gambling market. The aim of these measures is to achieve higher tax revenues and stimulate economic growth in Brazil.
What about the potential impact on the online gaming market with the imminent legalization of land-based casino-and-gambling resorts and bingo halls?As the national tourism ministry plans the construction of casino resorts, they see it as a means to test new gambling regulations and stimulate economic growth, thus raising questions about the future of online casino-and-gambling market.
