Brazil
If a full scale industry is given the green light, the Prosecutor’s Office has argued that rather than
increasing tax revenue for the state the new gambling laws would lead to an increase in money laundering and tax evasion.
Often described as Brazil's national vice, the jogo do bicho (animal game) continues to play a profound role in Brazilian politics.
Founded in 1892 by the Baron de Drummond to promote a zoo on the outskirts of Rio de Janeiro, every ticket to the zoo bore the image of an animal. Tickets were soon on sale via unofficial bookmakers or “bicheiros” throughout the city. Te municipal government made its first attempt to shut down the game shortly after that and it was later banned by the national government, but nothing the government has ever done has been able to stop it. Today, the game is estimated to provide a livelihood for as many as 400,000 people.
Te game is particularly popular in Rio de Janeiro where it is still controlled by criminal organisations. Tese illegal gambling mafias have long ties to politics, especially right wing politicians, during the military dictatorship wherein they cemented their control and expanded their network. According to local press, they also continue to back right wing politicians, including President Jair Bolsonaro. Policemen, politicians, judges, public servants, and other people in power have profited for decades from the game. Today, number game racketeers have expanded into the running of slot machines, while corrupt military police get a kickback for looking the other way. Arguably the most famous bicheiro of all was Castor Gonçalves de Andrade e Silva in Rio de Janeiro. Castor was a benefactor of the Brazilian Carnival, a patron of a samba school and involved in football.
Castor died in 1997 of a heart attack. Te repercussions of his death are still being felt today. Before he died, Castor divided his estate into two parts: his son Paulo "Paulinho" Roberto de Andrade, inherited the jogo do bicho interests, while his son-in-law Fernando de
P40 WIRE / PULSE / INSIGHT / REPORTS
Miranda Iggnácio received the slot machines and video poker side of the empire. Tis sparked a turf war. Paulinho Andrade was murdered a year later. Fernando Iggnácio de Miranda was executed in a gang style killing in 2020.
Indeed the animal game is so pervasive that it almost took down the government. In 2004, Brazil was hit by one of the largest political scandals in its history during the so-named “Mensalao Scandal,” (big monthly allowance). Te central allegation of the case was that illegal payments and benefits were paid to members of Congress in return for supporting the government in crucial votes.
Te Mensalao scandal came to light in 2005, but the sentences were handed down at the end of 2012. Over the course of the trial, 25 people were convicted for setting up a scheme that used public funds to pay coalition parties for political support. Gambling played a part in this because in February 2003, Magazine Época published a
bingo halls, where it was alleged he used to launder money generated by the jogo do bicho. Diniz had been serving as director of the Lottery sector of Rio de Janeiro. During the recording he agreed to rewrite an online lottery contract so as to favour Ramos. In return, the numbers game boss agreed to contribute more than £50,000 to the Workers' Party candidates during the 2002 general election and to pay-off Diniz too. President Lula tried to ban bingo halls outright in order to ward off a congressional probe into the accusations. 30,000 bingo hall employees took to the streets in protest, but Lula went ahead and banned bingo halls anyway.
OUTLOOK
Fears persist that any large scale casino project could be used as a way to launder money. If a full scale industry is given the green light the Prosecutor’s Office has argued that, rather than increasing tax revenue for the state, the new gambling laws would lead to an increase in
Today, number game racketeers have expanded into the running of slot machines while corrupt military police get a kickback for looking the other way. Arguably the most famous bicheiro of all was Castor Gonçalves de Andrade e Silva in Rio de Janeiro, a benefactor of the Brazilian Carnival.
report into Waldomiro Diniz, then the president's liaison to Congress. He was seen on a two-year-old videotape apparently soliciting hundreds of thousands of dollars in campaign contributions from the boss of the animal game, Carlos Augusto Ramos, in return for political favours.
Ramos was part or full-time owner of numerous
money laundering and tax evasion. In addition the size of the industry could easily overwhelm supervisory bodies. Meanwhile, the animal game is so deeply entrenched in the culture that it is now impossible to eradicate. Local state governments are now launching their own versions of sports betting, meaning less federal oversight. If casinos are given the green light, corruption scandals will follow.
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