Brazil
C
asinos were first banned in 1946 by President Eurico Gaspar Dutra claiming they spread prostitution and encouraged
the mafia and money laundering. This saw the immediate closure of around 70 casinos. Before the ban Brazilian casinos were some of the most famous in the world and generated a significant proportion of government finances. While horse racing was still permitted it wasn’t until 1993 when the government approved the Zico Law, which first allowed for the establishment of bingo halls in order to raise money for sports, that the industry was expanded. Later these began to spread nationwide at a fast pace and just as the government was looking at regulating the sector in a wider legislative framework the industry was hit by a national corruption scandal that went so deep that the President Luiz Inácio Lula Da Silva was forced to ban them altogether under decree.
To this day gambling in Brazil remains the most politically charged issue in the region due primarily to the proven links between gambling and organised crime. The Animal Game, an illegal street lottery, is played widely and numbers runners have
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According to a 2012 poll, over half of legislators in power were
ideologically opposed to casinos and gambling on principle. Making matters worse is the
fact that the Brazilian Congress is more conservative now after elections held last year.
been found to operate bingo halls and offer politicians and local officials bribes in return for closure. The “Mensalao Scandal,” as it was dubbed at the time led President Lula Da Silva to ban all bingo halls in Brazil by Presidential Decree in 2004 – an act which was later overturned by the Senate.
Due to the sensitive nature of the issue there has been very little political will in the past to address the issue of casinos directly and while there have
been a number of attempts to give casinos the green light, with the impetus coming mainly from the Senate, they have met with a lukewarm response from lawmakers. Furthermore, according to a poll carried out in 2012, over half of legislators in power were ideologically opposed to casinos and gambling on principle. Making matters worse is the fact that the Brazilian Congress is more conservative now after elections held last year.
However, there have been major developments in the last two months which could herald some of the biggest changes in the market for many years. The developments are in response to Brazil’s worsening economic crisis which could well lead to a complete about face when it comes to gaming. New proposals now on the table could allow for online gaming, as well as land based casinos and could legalise the animal game in order to generate resources for the state.
If the government finally green lights gaming it would be one of the most momentous moments in Latin American gaming history and could open up a huge and as yet largely untapped market. With a population of almost 180 million Brazil is the most
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