Brazil Senate Delays Vote on Casino Legalization Bill

Brazil-senate-delays-land-based-casino-bill-vote-until-2025In a major update for Brazil’s gambling landscape, the vote on a crucial bill that would legalize land-based casinos, bingo halls, and the controversial street lottery game jogo do bicho has been postponed by the Brazilian Senate. Initially scheduled for December 4, 2024, the vote now faces an uncertain timeline, with discussions likely to continue into 2025.

The delay was announced by Senate President Rodrigo Pacheco on Thursday, November 28, with the vote now potentially set for December 10, 2024. The decision came after resistance from various political factions, including vocal opposition from some religious and social groups concerned about the impact of increased gambling activity on vulnerable populations.

The bill, which has already passed the lower house in 2022, is part of a wider push by the Brazilian government to regulate and legalize various gambling activities within the country. As Pacheco explained, the bill is one of the Senate’s top priorities, along with other significant reforms such as tax regulations and artificial intelligence governance. The Senate has been working through an ambitious agenda ahead of the parliamentary recess scheduled to start on December 23, 2024.

Heated Debate on Economic Benefits vs. Social Concerns

The bill has sparked a heated debate in Brazil, with proponents arguing that legalizing casinos and bingo halls will create jobs, attract foreign investment, and boost tourism. Supporters also point out that legalization could help curb the illegal jogo do bicho, which is currently run by criminal organizations. These proponents, including members of the government and the Ministry of Finance, highlight the economic potential of regulating these industries in the same way that sports betting was legalized earlier in the country.

“The gambling sector is already active in Brazil, whether legal or not. By bringing it into the light and creating a structured legal framework, we can ensure greater transparency and regulate the market effectively,” said a government official who supports the measure.

However, there is considerable opposition, particularly from those concerned about the social and moral implications. Critics fear that legalizing more forms of gambling will exacerbate problems like gambling addiction and money laundering. The evangelical community, in particular, has voiced strong objections, warning that expanded gambling will have damaging effects on families and public health.

Senator Eduardo Girão (Novo-CE), a prominent critic, pointed to the rise of gambling-related debt, particularly among lower-income groups, as a major reason to halt the proposal. The National Confederation of Commerce of Goods, Services, and Tourism has also raised concerns about the potential economic losses caused by increased gambling spending, which they argue could divert funds from essential goods and services.

What the Bill Proposes

The proposed legislation is sweeping, allowing casinos to operate in integrated resorts or high-end hotels with a minimum of 100 rooms alongside meeting facilities, restaurants, and shopping areas. It also permits the establishment of casinos on sea and river vessels, with specific limits on the number of licenses granted per state.

Bingo halls would also be legalized, with each municipality allowed to operate one for every 150,000 inhabitants or one per municipality with fewer than 150,000 people. In addition, the bill would authorize the continuation and regulation of the jogo do bicho, but only under strict oversight, with a single operator allowed per 700,000 inhabitants. The bill also proposes regulations for electronic and card bingo games, as well as horse racing operated by tourism entities accredited by the Ministry of Agriculture.

The revenue from the gambling sector would be heavily taxed, with proceeds earmarked for various social causes, including addiction prevention programs, child protection, and funding for areas affected by natural disasters.

Economic Impact and Future Prospects

Supporters of the bill argue that the legalization of casinos and bingo will inject billions into the Brazilian economy and create significant employment opportunities. Estimates suggest that the gambling industry could generate up to R$100 billion in investment and create 1.5 million jobs. The proposed taxes on gambling, including a 17% rate on gross gaming revenue, would also contribute to the national coffers, potentially generating R$22 billion annually.

The Brazilian Ministry of Finance has supported the initiative, citing the need for modernization and regulation of the gambling market. Finance Minister Fernando Haddad, alongside Senator Irajá Abreu (PSD-TO), has advocated for a robust legal framework that ensures fairness and transparency in the sector.

Social Risks and the Future of Gambling in Brazil

Despite the potential economic benefits, the proposal faces an uncertain future. While President Lula has expressed a willingness to sign the bill into law if it passes through Congress, his comments reflect a cautious stance. “I am not in favor of gambling, but if Congress agrees and it’s done responsibly, I see no reason to veto it,” said Lula in a recent interview. However, he warned against the exaggerated promises of job creation and economic growth often associated with such proposals.

The postponement of the vote reflects the significant opposition to the bill, particularly from religious and social groups. However, as discussions continue, it remains clear that the issue of gambling legalization is far from resolved. As the Senate continues to weigh the benefits of increased regulation against the risks of addiction and crime, the future of the gambling industry in Brazil hangs in the balance.

Source:

Senado adia projeto que autoriza cassinos e bingos no país; proposta fica para 2025, senado.leg.br, December 4, 2024

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Jacky Rosen Finally Called Winner of Nevada US Senate Race

US Sen. Jacky Rosen, D, was called the winner on Friday night in the close race in Nevada against Sam Brown.

Jacky Rosen
Jacky Rosen, pictured above. She won her Senate race. (Image: Jacky Rosen campaign)

News of her victory was projected by the Associated Press at 9:15 p.m. PT. Other news organizations had declared her the winner earlier this week.

She was leading Brown, R, by 20,571 votes, according to news reports. That’s a difference of approximately 1.4%.

Naming her the winner came after Clark County processed late mail-in ballots, according to Las Vegas TV station KLAS.

To be counted in the race, mail-in ballots needed to be postmarked by Election Day, which was Tuesday.

Second Term for Rosen

This marks the second Senate term for Rosen. She initially was elected in 2018.

Previously, she was elected to House of Representatives in 2016.

Brown, a former Army officer, was endorsed by President-elect Donald Trump.

Initially Too Close To Call

The Rosen vs. Brown race was considered a toss-up by pollsters and then was too close to call after the polls closed on Tuesday.

As of Thursday, Rosen led Brown by 12,699 votes, based on numbers reported by the AP.

Rosen was leading then with 47.6% of the votes, which totaled 644,471, as of Thursday morning. Brown had 46.7% of the votes totaling 631,772.

Rosen was projected on Thursday to have won against Brown by Decision Desk HQ, The Hill reported. But other news organizations were hesitant to call the race given the number of ballots that had yet to be counted.

Many votes cast in Nevada still have questionable signatures. Voters have until Tuesday to verify their signatures on these ballots. As of Wednesday, 12,736 mail-in ballots had problematic signatures.

In some of Tuesday’s Senate races, the Republican candidates benefited from the historic victory seen by former President Donald Trump (R) over Vice President Kamala Harris (D) on Election Day.

Republicans had hoped Brown would capture the Senate seat, to boost the Republican majority in the Senate. The Republicans now have 53 seats in the Senate, while the Democrats have 46. The Arizona Senate seat has yet to be called.

In Arizona, Kari Lake, R, still trailed Ruben Gallego, D, on Friday in the close Senate race. As of Friday night, Lake trailed Gallego by 1.1% with a 32,779-vote difference, according to AZMirror, a regional news site.

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Irish Senate Debates Total Ban on Gambling Bonuses

Irish-senators-push-to-reintroduce-full-ban-on-bonusesThe debate over Ireland’s Gambling Regulation Bill 2022 is intensifying, with Senators Lynn Ruane and Alice Mary Higgins advocating for a total ban on gambling bonuses as the bill nears final approval. The original version of the bill had included a blanket prohibition on such bonuses, but recent amendments have altered this, allowing operators to offer free bets.

The bill, which has now entered the final stages of review in the Senate (Seanad Éireann), will soon advance to the report stage, after which it is expected to become law. During this process, multiple amendments have been introduced and debated. One notable change, made in May during discussions in the lower house (Dáil Éireann), adjusted the ban to permit free bets, albeit without targeted marketing.

Ruane Pushes for Stronger Restrictions

Senator Ruane, during the Senate debate on October 2, pushed to restore the bill’s original language, seeking to prohibit all forms of bonuses and inducements. She argued that such offers, including free bets, can be harmful to younger and more vulnerable individuals. Ruane emphasized that these inducements act as a gateway into gambling, particularly for youth, and noted examples from other sectors where similar incentives have been banned.

“These types of inducements are an entry point into gambling for young people. There are clear examples of inducements being banned in different contexts,” Ruane stated, pointing to restrictions in Ireland’s national lottery, alcohol sales, and tobacco products as comparable regulatory actions. According to her, the current version of the bill remains “unbalanced” and fails to sufficiently protect players, especially younger ones, placing the burden of responsibility on operators rather than individuals.

Supporting this stance, Senator Mark Wall expressed concern over how these regulations, especially in relation to free bets, would be enforced. He questioned the ability of regulators to closely monitor compliance. “For the life of me I cannot see why [the minister]

has to introduce free bets and inducements. We want to protect the most vulnerable. We have to do so,” Wall argued, advocating for a complete prohibition as the only way to truly protect those at risk.

Concerns Over the Impact on Legal Operators

However, not all senators are in agreement. Senator John McGahon raised concerns that a blanket ban could drive gamblers to unregulated, black-market operators, where they could be exposed to even riskier practices. He argued that restricting bonuses and free bets among licensed operators may backfire, leading consumers to seek these offers elsewhere.

McGahon also highlighted the competitive challenges that legal operators would face if such restrictions were implemented. “Without the ability to communicate directly with potential customers, gambling companies are left at a significant competitive disadvantage,” he explained, noting that other industries, such as entertainment and digital services, engage in aggressive marketing to similar audiences. The senator underscored that maintaining some level of engagement between gambling companies and players is vital for keeping the market balanced and preventing an exodus to illegal platforms.

Minister James Browne Faces Pressure from Both Sides

Deputy James Browne, who has been overseeing the bill’s development, finds himself at the center of this heated debate. Browne, who does not support a complete ban on gambling bonuses, reiterated that while restrictions are necessary, completely outlawing promotions would be unrealistic. He acknowledged the difficulties in managing both sides of the argument but remained firm in his decision to allow free bets under the bill’s current framework. “I do not support the complete ban of all promotions in the gambling industry,” Browne stated, rejecting Ruane’s proposed amendment.

Despite ongoing criticisms, Browne has defended the revised approach as a balanced solution, allowing for free bets while avoiding targeted inducements that could exploit vulnerable players. The final wording of the bill will soon be finalized as the legislative process draws to a close.

As Ireland moves closer to passing this significant piece of gambling legislation, the debate highlights the ongoing struggle between player protection and industry competitiveness. Whether the proposed amendments will further shape the bill remains to be seen, but the future of gambling regulation in Ireland hangs in the balance.

Source:

Irish senators push to reintroduce full ban on bonuses, igamingbusiness.com, October 7, 2024.

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Brazil’s Senate Delays Gambling Bill Vote Until After Elections

Brazil-casinos-and-gaming-Senate-vote-could-be-delayed-until-OctoberThe push to legalize gambling in Brazil faces another delay as Senate President Rodrigo Pacheco (PSD-MG) signals he is in no rush to bring the bill to the plenary. The legislation, which seeks to legalize casinos, bingo, jogo de bicho, and betting on horseracing, will likely be postponed until after the first round of municipal elections in October.

Prioritizing State Debt and Tax Relief

Allies of Pacheco have confirmed that his immediate priorities are the renegotiation of state debts and compensation for payroll tax relief. These issues were highlighted as top priorities by President Luiz Inácio Lula da Silva (PT) during a recent meeting with the senator. Consequently, the gambling bill, already approved by the Chamber of Deputies, will take a backseat until these fiscal matters are addressed.

The delay is also influenced by significant pressure from the evangelical bench, which has prepared studies to dissuade senators from supporting the legalization of gambling. The evangelical group argues that gambling could increase addiction rates in the country and raise moral concerns. Additionally, the Ministry of Justice has expressed fears that the measure could facilitate money laundering activities.

Despite these concerns, President Lula has shown a favorable stance towards the bill, indicating his readiness to sanction it if passed by the Senate. The bill is supported by both the economic team and the political wing, with long-term projections suggesting that the legalization of gambling could generate up to R$22 billion in revenue for the federal government.

Upcoming Thematic Debate

A thematic debate on the gambling bill is scheduled for Thursday, August 8, chaired by Senator Irajá Abreu. This session aims to address remaining points of contention, including the strengthening of measures to prevent organized crime and money laundering. If the debate results in a decision to proceed, the bill could be voted on the following week. Otherwise, the vote will be deferred to after the municipal elections on October 6.

This delay occurs as Brazil progresses towards launching its regulated sports betting and iGaming market, expected to commence on January 1, 2025. The Ministry of Finance’s Secretariat of Prizes and Bets (SPA) has published final regulations clarifying which online games will be allowed and detailing monitoring, inspection, state allocations, responsible gambling, and sanctions.

While some see the postponement of the gambling bill vote as a setback, it underscores Brazil’s legislative bodies’ cautious approach to balancing economic benefits with social responsibility.

Sources:

Pacheco não tem pressa para pautar PL dos jogos de azar.”, cnnbrasil.com.br, August 7, 2024.

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Senate Bill Proposes Ending U.S. Federal Excise Tax on Sports Betting

Bill-to-repeal-US-gambling-excise-tax-filed_In a significant legislative development, Senators Catherine Cortez Masto of Nevada and Cindy Hyde-Smith of Mississippi have introduced a new bill aiming to repeal the longstanding 0.25% federal excise tax on sports betting handle.

This bipartisan effort is backed by a coalition of lawmakers from both parties and chambers, marking a renewed push to eliminate a tax many see as outdated and detrimental to the legal sports betting industry. The proposed legislation, known as the Withdrawing Arduous Gaming Excise Rates (WAGER) Act, seeks to align with an existing bill in the House authored by Representatives Dina Titus and Guy Reschenthaler.

The Push for Repeal

Senator Cortez Masto emphasized the importance of removing the federal excise tax, citing Nevada’s thriving sports betting industry as a model for how legal gambling can significantly benefit local economies. “Nevada is home to multiple championship-level sports teams, and we know better than anyone that responsible, legal sports betting can be a great revenue source for our local economy,” said Cortez Masto. “My bipartisan legislation will ensure our sports gaming industry can provide essential tax relief to consumers and our sports gaming industry, creating more jobs and keeping our tax money in the state while cracking down on illegal activities.”

Senator Hyde-Smith echoed these sentiments, highlighting the negative impact of the tax on Mississippi’s tourism-driven economy. “Mississippi has a strong tourism industry thanks, in part, to our beautiful casinos and resorts that make valuable contributions to local communities. They could do more if not for this outdated federal excise tax on sports betting that only benefits illegal offshore operations which provide zero jobs or tax revenue,” Hyde-Smith stated. “By repealing this tax, our bipartisan WAGER Act will level the playing field, boost local economies, and ensure that gaming revenues stay here, supporting jobs and community investments.”

Industry Support and Opposition

The American Gaming Association (AGA), a major trade group representing the gaming industry, has expressed strong support for the WAGER Act [pdf]. The AGA argues that the excise tax, initially established over 70 years ago to combat illegal gambling operations, now places legal operators at a competitive disadvantage. “The AGA is grateful to Senators Cortez Masto and Hyde-Smith for their commitment to providing a safe, responsible sports betting market and to continuing to help migrate bettors out of the illegal market, which is bereft of consumer protections and a haven for bad actors and tax evaders,” commented Bill Miller, CEO and President of the AGA. “The AGA will continue to work with policymakers to enact legislation to address this harmful tax.”

Industry insiders have long criticized the excise tax as an unnecessary burden on legal operators, who are already subject to state regulations and taxes. Brandt Iden, Vice President of Government Affairs at Fanatics Betting & Gaming, stated, “This tax has always penalised regulated operators and rewarded illegal operators who prey on consumers. Repealing this tax is one more step in the fight against the offshore market.”

Competing Legislation

While the WAGER Act has garnered considerable support, it faces competition from another piece of legislation introduced earlier this year. The Gambling Addiction Recovery, Investment, and Treatment (GRIT) Act, proposed by Senator Richard Blumenthal and Representative Andrea Salinas, seeks to maintain the excise tax but redirect its revenue towards responsible gambling initiatives and problem gambling treatment. This bill aims to leverage federal oversight to enhance responsible gambling efforts across the nation, in contrast to the state-level approaches currently in place.

Proponents of the GRIT Act argue that federal involvement is necessary to ensure consistent support for gambling addiction programs. However, opponents believe that the responsibility should remain with individual states, which have their own funding mechanisms for responsible gambling initiatives.

The Road Ahead

The debate over the federal excise tax highlights broader questions about the role of federal oversight in the rapidly evolving landscape of sports betting and iGaming. Since the repeal of PASPA in 2018, sports betting has become a significant industry, with 38 states and Washington, D.C., now offering legal wagering. The push for repeal reflects a growing recognition that state-level regulation is sufficient and that federal taxes may impede the industry’s growth and innovation.

The current excise tax, which amounts to approximately an additional 5% tax on gross gaming revenue, is seen by many as an unnecessary hindrance. Brendan Bussmann, a consultant in the gaming industry, noted, “By eliminating the excise tax, we can help lower the tax burden that every sports betting operator pays. It helps create a more competitive market against the illegal operators that do not pay state or federal taxes.”

In addition to the excise tax on wagers, the federal law also includes a $50 “head tax” on gambling employees, further complicating the financial landscape for legal operators.

Source:

Bill to repeal US gambling excise tax filed, igamingbusiness.com, July 31, 2024.

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