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(Population: 200.4 million)

Having crossed the 200 million mark in terms of population, Brazil is the 5th
largest country in the world by that metric, and by far the leader within Latin
America.

But among the so-called Group of 20 nations, which collectively represent the
20 strongest economies on Earth, Brazil is the only non-Muslim nation to lack a
legalized and regulated gambling industry. And while Saudi Arabia and Indonesia
are both home to people who largely avoid gambling out of respect for their
religious practice, Brazil has no such reason to ban the activity.

The Brazilian people are famously enthusiastic about gambling in many forms,
with lottery style games like Jogo de bicho, the animal game, dating
back more than 120 years. Bingo halls have proliferated in Brazil’s major
metropolitan areas for decades, betting on dog and horse racing is rampant, and
of course, futbol, or soccer to Westerners, matches are made more
exciting with informal wagers between buddies.

Today, poker has also taken root here, and successful Brazilian pros like
André Akkari are now joined by soccer superstars Ronaldo and Neymar Jr. on the
felt.

Even so, for several generations now, Brazilians have been forced to enjoy
their various hobbies in unregulated markets, as the country’s longstanding
legal policy has made gambling expressly forbidden.

When the impact of colonial influence, a protracted war of revolution, and
decades of experimentation with democratic governance are factored in,
deciphering the motivation behind Brazil’s gambling ban becomes an enormously
complex task.

As surprising as Brazil’s official stance on gambling is, the laws against
games of chance are actually in keeping with the country’s outdated legal
interpretations. You wouldn’t know it during a trip there, but activities like
hunting wild game, smoking cigarettes in public view, and even sunbathing with
your top removed are all illegal under federal law.

Of course, that doesn’t stop Brazilians from lighting up outside of the bar
or baring it all on the beach, and the same holds true for gambling. Although
it’s technically illegal, millions of Brazilians do it every single day.

The federal statute on the books at the moment, known as the Criminal
Convention Act (CCA), dates all the way back to 1941. The law was written to ban
all games of chance, which it defines as “a game in which winning or losing
depends exclusively or principally on luck; bets on horses outside of the
racetrack; or bets on any sports competition.” The CCA overturned a 1930 law
which allowed games of chance to be played freely.

At the time, the states of Rio de Janeiro, São Paulo, and Minas Gerais were
considered to be the casino capitals of Brazil, with cities like Poços de Caldas
and Petrópolis boasting world-class casino venues.

When the Quitandinha Palace opened for business in Petrópolis in 1944, it
stood as the largest gambling establishment in all of South and Central America
combined. Celebrities like
Greta Garbo, Carmen
Miranda, Walt Disney, and
Bing Crosby, were
patrons of Quitandinha Palace during its brief heyday. Other major casinos in
Brazil during the pre-prohibition era included the Copacabana Palace, Hotel
Atlântico, and Hotel Parque Balneário

Unfortunately for fans of Brazil’s eclectic casino scene, incoming president
Eurico Gaspar Dutra enacted the country’s fifth constitution in 1946, and among
his package of reforms was Law Decree 9215. This presidential decree called for
the immediate closure of all casinos in the country, ending the run of
Quitandinha Palace after only two years, while consigning casino gambling to the
realm of illegality to this day. All licenses and contracts awarded to casino
operators were rescinded on the spot, while properties were shuttered and gaming
equipment was confiscated.

Although president Dutra’s term is recognized today as a pivotal shift toward
positive democratic reforms in Brazil’s history, Law Decree 9215 is the reason a
nation with more than 200 million residents is home to just a pair of casino
properties in 2017.

Lottery

Exactly 50 years ago, Brazil’s federal government issued Law Decree 204,
establishing a national lottery system which has flourished ever since. In
total, nine federally operated lottery programs can be played completely
legally:

• Federal Lottery
• Instant Lottery
• Mega-Sena
• Double-Sena
• Quina
• Lotomania
• Lotogol
• Loteca
• Lotofácil

Control of the finances for these lottery programs is maintained by Caixa
Econômica Federal, a state-controlled bank which is second only to Banco de
Brazil in all of Latin America.

Additionally, 17 of the 27 states and districts in Brazil run their own
lottery programs to fund local government projects.

Bingo and Slot Machines

In 1993 a bill known as the “Zico Law,” or Law Decree 981, was passed to
permit the operation of electronic gaming machines throughout Brazil. This
legalized slot machines by giving individual states and districts autonomy over
these sectors of the gambling industry. The Zico Law pledged to revitalize
national sports teams by devoting portions of bingo and slot tax revenue to
infrastructure and development.

Soon enough bingo halls with attached slot parlors were widespread throughout
Brazil, and in 1998 the “Pelé Law,” or Law Decree 2.574, was added to strengthen
federal oversight. Each bingo hall was permitted to house up to 400 slot
machines, and both gambling games became increasingly popular among the local
population.

In 2000 another Law Decree, 9.981, was passed to cut off all further
licensing of bingo halls and slot machines. That effectively ended any further
growth for this segment of Brazil’s gambling industry.

By 2004, the tide turned regarding bingo and slot machines, as the Supreme
Federal Tribunal – Brazil’s equivalent of the Supreme Court – ruled that state
autonomy over the regulation of gambling only extended to lotteries. Both the
Zico Law and the Pelé Law were abolished, and in 2007 the “Súmula Vinculante 2”
(or second Binding Summary) ordered by the Tribunal led to the closure of all
official bingo halls and slot parlors.

Today, the industry operates on an underground basis, with illicit bingo
games springing up and attracting players until attention from authorities
forces them to move.

Horse Racing

Fortunately for fans of horse racing and related pursuits, the “sport of
kings” was never mentioned within the CCA of 1941, and thus it was never banned
by federal law.

Today, the Comissão Coordenadora da Criação do Cavalo Nacional (CCCCN) is in
charge of supervising all horse racing, wagering, and related activities. The
two major venues in Brazil are the Hipódromo da Gávea in Rio de Janeiro, and the
Hipódromo do Cristal in Rio Grande do Sul.

Until 2005 pari-mutuel wagering was only permitted on locally ran races, but
a 2005 revision by the Ministry of Agriculture, known as Normative Instructive
Number 27, allowed pari-mutuel bets to be placed on national and international
events. A Spanish company called Codere, which operates racetracks and gambling
facilities all over the world, entered into a 10-year agreement with the
Brazilian government soon afterward.

Since then, Codere has partnered with the Brazilian Jockey Club and the Rio
Grande do Sul Jockey Club to open several simulcasting parlors in which punters
can place bets on any race in the world at a moment’s notice.

Online Gambling

Because the CCA of 1941 could obviously have never covered the concept of
internet-based gambling, the online arena is quite murky in Brazil. Technically
speaking, operating an online casino from within Brazil would be quite illegal
under the CCA, as it would involve games of chance – but playing as a
customer of an online casino wouldn’t violate any laws.

Accordingly, many of the major online casino software servicers in the world
– companies like Betsoft, IGT, Microgaming, Playtech, and NetEnt – make sure to
allow Brazilian residents access to their servers. Rather than blocking these
players, like they’re forced to do for American customers, the major online
casino platforms can let Brazilians into the game because no local laws are on
the books prohibiting them from doing so.

The rise of Brazil’s internet-user base has been well-documented, as more
than 100 million people there count as active online participants, and the
online gambling industry is keen on keeping the financial flow open. With online
poker experiencing a second boom in Brazil, thanks in large part to
PokerStars-sponsored “SportsStars” like national soccer team heroes Ronaldo and
Neymar Jr., even the political class has been forced to accept the inevitable.

Rather than forfeit hundreds of millions of dollars in revenue to offshore
operators – estimates recently tabbed the country’s online gambling output at
USD$875 million – Brazil’s Special Committee on National Development (CEDN)
approved Bill 186-2014 in December of 2015.

This comprehensive gambling legalization bill proposes the construction of 35
land-based casinos, 1,200 bingo halls, 600,000 electronic gaming terminals, and
the regulation of online gambling.

Status of Bill 186-2014

With the Brazilian economy experiencing a drastic downturn in recent years,
the impetus to pass Bill 186-2014 became increasingly clear after it was
introduced. Simply put, Brazil couldn’t afford to continue letting the lucrative
gambling market operate in an underground, and therefore untaxed, fashion.

With an estimated 20 million Brazilians wagering upwards of USD$3.75 billion
on jogo do biche, USD$1.1 billion in slot parlors, USD $900 million
through online gambling, and countless millions more on sports betting, the
government appeared to have every intention of signing the sweeping reforms into
law.

Unfortunately, when president Dilma Rousseff was entangled in a lengthy
impeachment proceeding shortly after Bill 186-2014 was introduced, passing
gambling law went to Brazil’s political backburner. The impeachment drama
dragged on until August of 2016, when Rousseff was removed from office by a
61-20 vote in the Senate.

Not coincidentally, the end of impeachment proceedings coupled with the
installation of vice president Michel Temer to the presidency ended the
political logjam. That same month, Senator Fernando Bezerra Coelho issued a
comprehensive report examining the logistics of Bill 186-2014, in which he
called for an open bidding process to invite well-funded international
operators, and a 30 percent tax on player winnings, among other tweaks to the
legislation.

Two months later, the Senate’s Special Committee on National Development
approved the bill’s statutory language, setting the stage for a pivotal Senate
vote in December of 2016. That vote took place on December 14th, but rather than
passing or tossing out Bill 186-2014, the Senate decided to refer the
legislation for further constitutional review.

Senator Magno Malta, who also works as a pastor in his home state of Bahia,
put forth a motion to move the gambling bill down to the Senate’s Constitution
and Justice Commission (CCJ), a move which ostensibly delays a final vote for
the foreseeable future. Malta is widely recognized as the leading detractor and
political opponent of Bill 186-2014.

According to Edgar Lenzi, president of the BetConsult gambling industry
consultancy based in Curitiba, the delay shouldn’t be viewed as the death knell
for Bill 286-2014. As he told CDC Gaming Reports, the CCJ won’t be examining the
merits of gambling regulation, but rather the strict constitutionality of the
law as written:

“The CCJ is the commission responsible for a constitutional analysis and
debate of bills proposed to the Brazilian Congress. It does not make an analysis
about the matter of the bill itself, but only about the relationship between the
bill and the Constitution.”

Magno Jose de Souza, president of the Institute for Legal Gaming, echoed that
sentiment by pointing out that the 44-19 vote to refer the bill downward is
simply part of lawmaking procedure:

“The referral of the project to the CJC does not represent the end of the
world. It’s just one more stage of the process.
We will work to pass (the Chamber of Deputies bill) and create muscle to
confront the full Senate again soon. The end of the world would be if the
proposal were to be rejected by the Senate plenary.”

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A competing gambling bill has been introduced in Brazil’s lower house, known
as the Chamber of Deputies, with Bill 442-1991 keeping the land-based gambling
reforms intact – but expressly banning all online gambling.

With Bill 186-2014 consistently stalling out in the Senate, many Brazilian
political observers believe online gambling to be the primary sticking point,
and Bill 442-1991 is viewed as a dark horse candidate to be the legislation
which crosses the proverbial finish line first.

Today, both bills are stuck at the committee level once again, and Senator
Coelho has gone on record as saying that a final vote is likely to be delayed
until “March, April, (so) we can gather support necessary for the activity of
gambling to be legalized in Brazil.”

The country’s powerful religious lobby, led by the Catholic Church has also
jumped into the fray, urging the faithful to reject any gambling reforms that
would remove current restrictions.

Conclusion

As the leading economy in South America, Brazil has every reason to make a
bet on legalized gambling, but the country’s tangled political system resembles
that of the United States. And just as Americans remain stuck in limbo waiting
for online gambling, sports betting, and daily fantasy sports (DFS) legislation
to be finalized, Brazilian bettors will be forced to the underground until the
country’s Senate gets its act together.

Fortunately, with two bills currently in the mix, land based gambling reform
appears to be a foregone conclusion here. Casinos, racetracks, bingo halls, slot
parlors, and sports books should all be a regulated aspect of the Brazilian
economy sometime in 2017, barring unforeseen developments.

As for online gambling, America has proven that societal divides on this
segment of the market still run deep, so it wouldn’t be all that surprising to
see Bill 442-1991 and its online gambling ban beat our Bill 186-2014 and its
more modernized approach.

The immense South American nation Brazil is the ideal mix of the Iguaçu Falls and the Amazon Basin. The country includes various Carnival celebrations which are described by flashy outfits, samba music and moves, and parade glides. What’s more, there are shorelines extending from Ipanema to Copacabana. The nation’s perks are various yet its tourist-inviting environment is even more engaging. Under its tourism industry, we have the huge and alluring gambling industry which is sadly unregulated.

History of Casinos in Brazil

The first landmark in Brazilian history can be drawn to the early years of the 16th century when Europeans arrived in the country. Portuguese explorer Pedro Álvares Cabral was the first European to colonize Brazil in 1500 under the Kingdom of Portugal. The Portuguese Empire ruled Brazil from the 16th to the 19th century. Eventually, Brazil started growing and division became an inevitable process. In the process, Brazil was divided between Portugal and Spain.

In 1822, the country became independent of Portugal and the Empire of Brazil was established. The Empire of Brazil became the First Brazilian Republic in 1889 following a military coup. From then till 1985, the country was governed by various dictators and military rulers. Concurrently, the final amalgamation of all Brazilian territories took place in the early 20th century.

Throughout all these years, the country known today as the Federative Republic of Brazil perceived gambling facilities and activities in diverse ways. For one, the government exploited gambling activities within the country during the Brazilian Empire. The previous centuries have seen gambling activities being forbidden by the government and again being allowed. The debate has been quite hectic and has witnessed drastic and rational opinions.

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In 1930, Brazil permitted all forms of gambling within the country. But in 1946, the Brazilian gambling industry saw a major decline (or closure) when then-President Eurico Gaspar Dutra forcefully ordered all casinos and gambling facilities in areas such as Poços de Caldas, Petrópolis, and Lambari to close down immediately. Even the biggest hotel in Brazil at the time – the Quitandinha Palace (Palácio Quitandinha) in Petrópolis – was closed down.

According to Brazil’s constitution of 1946, only sports betting, horse races wagering, and games of chance specifically based on luck are legal. In contrast, offering any gambling activity in a public setting (such as a company’s headquarters, house, or hotel) is prohibited.

As a result, gambling is not as impressive in Brazil as in other South American countries. However, Brazil has some of the oldest horse racing tracks and casino hotels in South America and its oldest National Lottery was established in 1784.

From 1784 to the 1960s, lotteries were operated by individuals selected through public bidding with a five-year tenure. Then-President Jânio da Silva Quadros restricted lottery operations to the State and the Union exclusively. This law is still intact today and the Caixa Econômica Federal administers the federal lottery operators. Each state, however, controls its own lottery operator(s).

Today, gambling is popular in Brazil despite the strict and uncertain gambling law.

Current Gambling Climate

Casinos and a handful of other gambling facilities are not legal in the South American country. Well, the legalization and restrictions of casinos are contradictory in this part of the world. However, few casinos still operate within the country. There is a total number of six casinos in the country.

Pertaining the country’s gambling environment, it is just as serene and calming as other South American countries. And although they are not plenty, the few do well by providing a variety of games and an excellent gambling atmosphere. Brazil is a profitable country concerning most of its industries. So, tourists and visitors will surely be welcomed warmly in this fascinating South American country.

Casinos in Brazil by Area

Even though the total number of gambling facilities in Brazil is just six, they are located in five distinct Brazilian cities. Gávea Hippodrome is located in Rio de Janeiro while Hipodromo de Cidade Jardim at Jockey Club de São Paulo is located in Cidade Jardim, São Paulo. Hipodromo do Cristal and Winfil Entretenimento are both situated in Porto Alegre, Rio Grande do Sul while Hipódromo do Tarumã at Jockey Club of Paraná is situated in Curitiba, Paraná. Palácio Quitandinha, lastly, is located in Quitandinha, Petrópolis.

Furthermore, the largest gambling area is Porto Alegre, Rio Grande do Sul. The city offers two different gambling facilities and more than 500 gaming machines and table games. Particularly, Winfil Entretenimento is the largest casino in the whole country, with more than 400 table games and gaming machines.

Types of Casinos in Brazil

Regarding the fact that casino gambling is illegal, unlicensed and unregulated in Brazil, the number of casinos available is small and gambling varieties are reasonably limited. The casinos are particularly more racinos than actual casinos, yet some are attached to hotels. Although they offer basic casino games like roulette, blackjack and slot machines, most are more focused on their racetracks.

The most popular game in Brazil is Jogo de bicho (the Animal Game) – a style of lottery game which is more than 120 years old. In addition to Jogo de bicho, bingo and football (football or soccer) are popular amongst Brazilians and Brazil residents. Poker, on the other hand, is also popular but its popularity is rather newer than Jogo de bicho, football, and bingo.

The situation of online gambling in Brazil is quite similar to other South American countries. Brazilians and Brazil residents are not persecuted for gambling on any form of online gambling activity but operating an online gambling provider within the country is illegal. So, Brazilian natives, as well as tourists and residents, can gamble freely online as long as they are accessing offshore websites or web apps.

Lottery, on the other hand, is much more participated by Brazilians than other gambling activities. The country’s national lotteries are nine: Federal Lottery, Instant Lottery, Mega-Sena, Double-Sena, Quina, Lotomania, Lotogol, Loteca, and Lotofácil – and they are all operated by the Caixa Econômica Federal. State governments also offer lottery operations depending on the state’s administration. For example, Banco Nossa Caixa administers lottery operations within São Paulo.

List of Casinos in Brazil

Below is a list of all casinos currently operating in the regions of Brazil.

Gávea Hippodrome
Hipodromo de Cidade Jardim at Jockey Club de São Paulo
Hipodromo do Cristal
Hipódromo do Tarumã at Jockey Club of Paraná
Palácio Quitandinha
Winfil Entretenimento

Facts About Casinos in Brazil

– The minimum gambling age in Brazil is 18 years like most of the other countries.

– The Federal Government of Brazil collects 54 percent of the total lottery amount within the length and breadth of the country while the remaining 46 percent is distributed in prizes. The percentage collected by the government is supposedly used to investment in the country’s sports, health, culture, education, and security sectors.

– The National Congress and the Senate have been trying to legalize many forms of gambling in the country. Particularly, the Senate can be credited more because they have made a more significant progress.

– In 2014, Senator Ciro Nogueira Lima Filho proposed that casinos, bingo halls, slot parlours, and sports betting shops should be within the length and breadth of the country. However, the proposal – although almost accepted – was declined.

– The country’s legislators have had varying opinions pertaining the legalisation of gambling facilities within the country. Some claim gambling would only worsen the country’s economy while others supported the fact that gambling would make the country economically stronger.

– Although illegal, gambling is bigger in Brazil than most countries. Illegal gambling facilities generate a whopping amount of $6.4 billion annually, according to the Instituto de Jogo Legal.

– According to the Instituto de Jogo Legal (IJL), the Jogo do Bicho market is estimated to worth about $3.8 billion and the local market should be $17.6 billion or more. The IJL also stated that the country loses $2 billion annually.

– More than 200,000 Brazilians and Brazil residents travel to Uruguay and other countries to gamble in their casinos.

– With a population of 207.7 million, Brazil could easily become the world’s largest gambling destination. And coupled with its tourist-friendly environment, the gambling industry if regulated could even be larger than expected.

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– Jockey Club de São Paulo was established back in 1875, making it one of the oldest horseracing tracks in South America and the whole world.

– The country’s 26 states and the federal district are allowed by the Federal Government to make or break their individual gambling laws.

– In 1944, the Palácio Quitandinha in Petrópolis launched and became a nationwide destination. Walt Disney, Bing Crosby, and Carmen Miranda were few of the public figures the hotel welcomed. Soon, the hotel closed in 1962 – but began reconstruction later in 2007. Today, Palácio Quitandinha is operational.

– In 1930, gambling became legal in Brazil – but became illegal in 1941 and 1946.

– In 2010, the National Congress failed at passing a bill that would restrict Brazilians and Brazil residents from performing money-related exchanges with web-based betting administrators.

– In 2008, a bill to completely restrict online gambling failed. In 2009, the Federal Government of Brazil also failed at ordering Internet service providers (ISPs) to forcefully block any website providing any game of chance.

– Brazil is utilizing the Law Decree 9215, which makes gambling very minimal in the country.

– The Criminal Contravention Act of 1941 made all forms of gambling – especially sports betting – within the country illegal and a criminal act.

– In 1946, casinos were specifically outlawed by a presidential decree.

– In 1993, the Zirco Law was introduced and passed. The Zirco Law, officially the Law Decree 981, permitted electronic gaming machines within the country. The law increased the amount of slot machines and bingo halls in the country. In 1998, the Pelé Law was passed as an upgrade to the Zirco Law. Officially the Law Decree 2.574, the number of bingo halls increased as each bingo hall was allowed to house a maximum of 400 slot machines. In 2000, eventually, the Law Decree 9.981 was passed and completely banned all bingo halls, slot parlours and slot machines. This wasn’t as effective as the rule the Supreme Federal Tribunal created in 2004. The rule scrapped both Zirco and Pelé laws, and effectively closed down most of the country’s bingo halls and slot parlours. In 2007, further, the Súmula Vinculante 2 closed all bingo halls and slot parlours completely.

– The Law 7291 of 1984 made the horse racing industry legal. In 1988, the Law Decree 96.993 reinforced the legalization and made horse racing outrageously popular throughout the length and breadth of the country.

– According to the CCA of 1941, online gambling is illegal. However, Brazilians are allowed to gamble online on foreign online casinos, online bookmakers, and online lotteries.

– Cruise ships travelling through Brazil or those that have landed in the country are allowed to offer casino games in Brazil. However, only their on-board passengers can participate in any game of chance.

– According to Gambling.com, Brazil’s online gambling industry is worth more than $265 million.

– In 2015, Sky Racing World (a distributor of horse-racing products) announced a partnership with Codere (Spanish multinational gaming group). The partnership was to make Australian races wagering possible within Brazil. However, the development have gone mute ever since.

– In 2016, Ortiz Gaming – a multinational gaming developer – announced their support for gambling legalization in Brazil. Just five months later, the Brazilian Gaming Congress (BgC) held a meeting and discussed the legalization of Internet gaming.

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