Senate Division Causes More iGaming Legislation Delay in Brazil

The Brazilian Senate has delayed a crucial vote on a bill to legalise and regulate casinos, online betting, bingo halls, horseracing, and jogo do bicho, a traditional Brazilian numbers game. The vote was pulled from the agenda due to low attendance and deep political divisions, leaving the controversial proposal in legislative limbo.

Senate President Davi Alcolumbre cited a lack of quorum and polarised views within the chamber. “The quorum is very low—56 senators. Due to a big divergence in opinion and the absence of senators, I will officially remove this from today’s agenda,” Alcolumbre announced during the session.

 

Key Points

Senate Postpones Gambling Legalisation Vote: On July 8, 2025, Senate President Davi Alcolumbre announced the postponement of the vote on Bill 2234/2022, which seeks to legalise casinos, bingos, online games, horserace betting, and the traditional jogo do bicho. The decision was made due to low attendance, with only 56 senators present, and significant divisions among lawmakers.

Bill Seeks to End 1946 Gambling Ban: The proposed legislation aims to overturn Brazil's 1946 prohibition on most forms of gambling. If passed, it would allow operations exclusively by Brazil-based companies and restrict gambling activities to authorised locations. The bill has already been approved by the lower house and the Senate's Constitution and Justice Commission.

Economic and Social Implications Debated: Proponents, including Senator Irajá, argue that legalisation could generate significant tax revenue and reduce links between gambling and organised crime. However, opponents express concerns about potential increases in gambling addiction and financial instability. The Finance Ministry has also called for stricter national taxation on betting activities.

The proposed bill, already approved by the Chamber of Deputies and backed by the Senate’s Constitution and Justice Commission, aims to reverse Brazil’s decades-long ban on most forms of gambling. The ban has been in place since 1946, forcing much of the industry underground or offshore.

Under the proposal, only companies headquartered in Brazil would be eligible to apply for licences. Gambling operations would be limited to authorised land-based venues and regulated digital platforms. The bill includes measures to tax the industry and channel revenue into public services.

Supporters vs. Critics

Supporters argue that the legalisation of gambling could generate billions in annual revenue, formalise an existing shadow economy, and reduce the influence of criminal networks. Senator Irajá, a key proponent, said the bill is necessary to bring the gambling industry into a regulated, transparent environment.

“The main benefit of the bill is to allow contravention to move into a regulated framework, reducing possible links between gambling and organised crime,” Irajá said. He also highlighted the potential for job creation and tourism growth tied to casino resorts and entertainment venues.

However, the bill faces stiff opposition from conservative and religious senators who warn of social and economic risks. Critics argue that legalising gambling could worsen addiction rates, increase household debt, and make vulnerable populations more susceptible to financial harm.

 

“There is no guarantee that the social costs will be outweighed by revenue,” one opposing senator noted, urging a more cautious approach.

Regulatory and Fiscal Push

The vote delay comes amid broader discussions within the federal government about taxation and oversight of Brazil’s rapidly expanding betting market. Finance Minister Fernando Haddad has publicly supported stricter fiscal rules and national-level regulation for the sector, particularly for online sports betting, which is already operational under provisional rules.

Despite growing pressure from industry groups and some state governments eager to benefit from local tax revenue, the legalisation effort remains politically sensitive. Analysts say the bill may face further delays unless a consensus is reached or stronger political backing emerges from Senate leadership.

As of now, no new date has been set for the vote. With both economic incentives and public health concerns on the table, the debate over gambling legalisation in Brazil appears far from over.