Poker Writer
The Brazilian Supreme Federal Court has suspended any judgment on whether the country’s long-standing prohibition on games of chance remains valid. The prohibition has been in place for more than 80 years, dating to 1941. The case is an important one for the gambling industry because it could affect the legality of land-based casinos in the country.
A hearing in Brasilia on Thursday provided no result. The court postponed proceedings for up to 90 days, but it could extend all the way into 2027.
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Online Fixed Odds vs. Games of Chance
The debate centers on whether the prohibition clashes with the 1988 constitution and interferes with free enterprise and fundamental freedoms. Currently, the ban includes games of chance in public venues or places accessible to the public. That is why Brazil has not had any casinos since 1946.
But it does not currently include online betting and gambling, which is quite prevalent in Brazil. Online casinos are permitted in Brazil as long as the site’s domain and provider are based outside of the country. Online gambling has become a huge business in Brazil as it is one of the world’s largest and fastest growing markets. As much as 5% of all worldwide online gambling traffic comes from Brazil.
One Justice believes that the ban should include online betting. Flavio Dino stated that he believes that it should extend to online fixed-odds betting, which in his mind brings the same risks as games of chance:
If we say that games of chance constitute a criminal misdemeanor, are we saying that betting is also a misdemeanor? Then we need to explain why it is not. Why is it not? Because it is a game of chance.
Dino’s objection became the reason for the suspension in the court.
Potential Casinos in Brazil
There are many shifting tides in the debate about gambling in the large South American country, with several different possible paths ahead for the industry.
Brazil’s Senate continues to consider legislation that would legalize integrated casino resorts. Bingo halls and a “jogo do bicho” numbers draw game would also be legalized.
The postponement of the land-based gambling bill is likely to be bad news for potential legalization, as it makes lawmakers less inclined to make a big change while other gambling debates are ongoing.
Elsewhere, there are also factions within the country who are turning against all forms of gambling. Online gambling is in the crosshairs of President Lula, who now opposes its legalization after having approved it in 2023.
