Lawmakers in Brazil Approve Bill for Building Integrated Casino Resorts
Brazil edges closer to becoming a nation to host integrated resort complexes featuring casinos.
Over two years since Bill No. 2234 - a law authorizing Las Vegas-style casinos in the fifth-largest country by area - was passed by the Chamber of Deputies, it has finally gained approval in the Federal Senate. Following extensive discussions and warnings about the potential dangers of gambling from the Christian caucus, the measure narrowly passed the Senate Constitution and Justice Committee by a 14-12 vote on Wednesday.
The committee’s vote sends the casino bill to the Senate floor for a final vote. If a majority endorses the gaming legislation, it will proceed to President Luiz Inacio Lula da Silva for his signature.
Lula has long supported gaming expansion, having signed Bill No. 3626 last December to legalize sports betting and iGaming industries.
Casino Details
Casino gambling has been prohibited in Brazil since 1946, but Bill No. 2234 aims to lift the ban. Lula has consistently believed that legalizing casinos would aid in the development of Brazil's tourism industry, making it more competitive in hosting international conventions and expos at large-scale resorts.
During his tenure, President Jair Bolsonaro suggested Brazil should create tourist centers and integrated leisure complexes with casinos, likening them to Cancun, the Mexican city with numerous resort casinos in the Yucatan Peninsula.
Bill sponsor Sen. Iraja Abreu (Social Democratic Party-Tocantins) stated it's high time Brazil took part in the casino market.
We can no longer miss out on this tremendous opportunity that other countries have already seized and is recognized for creating jobs, income, and taxes, which could be used to improve essential areas such as healthcare, education, social, and infrastructure,” Iraja said.
Bill No. 2234 allows resorts with a minimum of 100 hotel rooms, along with restaurants, bars, and meeting facilities, to apply for casino licenses. Each state and the Federal District would be limited to one casino license, with Sao Paulo having the possibility of hosting up to three. Minas Gerais, Rio de Janeiro, Amazonas, and Para would be authorized to host two casino destinations.
Licensed casinos would need to pay R$600,000 (US$110,800) every three months to the federal government for gaming rights. Gross gaming revenue (GGR) produced by the casinos would be subject to an 17% federal tax.
Sands Plan
Las Vegas Sands, the largest casino operator globally with a market cap of $33 billion, has long expressed interest in developing an integrated resort casino in Brazil.
Known for its Marina Bay Sands destination in Singapore and its casinos in Macau, China, Sands has previously managed The Venetian and Palazzo on the Las Vegas Strip and Sands Bethlehem in Pennsylvania.
In 2017, the late founder of Sands, Sheldon Adelson, visited Brazil to pitch an $8 billion casino complex. six years later, it remains uncertain if Sands leadership retains its deceased founder’s enthusiasm for investing in Brazil.
Lately, Sands has been focusing on Texas, specifically Dallas, for an integrated resort casino that could accompany an NBA arena. Last year, Dr. Miriam Adelson, Mr. Adelson's widow and the casino company's largest shareholder with a 46% stake, acquired a controlling interest in the NBA Dallas Mavericks from Mark Cuban.
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