Brazil: Gambling Legalization Would Bring $3.5B in Annual Tax

It was back in 2018 when Brazil legalized sports betting. While the activity is expected to bring some tax proceeds, it is yet to launch. On the other hand, the country still hasn’t legalized casino gambling, despite extensive lawmakers’ efforts last year.

A Lawmaker Predicts That Gambling Legalization Would Bring Benefits

According to one of the supporters of casino legalization, Federal Deputy Herculano Passos, the activity may bring hundreds of thousands of new workplaces and raise R$20 billion ($3.53 billion) in annual tax proceeds. Last week, the Federal Deputy was interviewed by Poder360 and revealed that legalizing gambling may bring significant economic stimulus for the country. Undoubtedly, that stimulus would help Brazil, considering its R$100 billion fiscal deficit for last year.

“In these 3 modalities, animal game, bingo and casino, the expectation is 650,000 jobs,”

said Federal Deputy Herculano Passos in a recent interview for Poder360

Moreover, Passos predicted that legalizing casinos, bingo and animal gambling would result in creating thousands of new workplaces. He explained that such legalization would likely result in creating some 650,000 jobs. If the country introduces integrated resorts that would result in an overall increase in business for states where such resorts are located as well.

Passos calculated that taxing gambling at approximately 30% would result in R$20 billion ($3.53 billion) in annual tax income. He explained that those tax proceeds would help fund culture, health, as well as municipalities in Brazil. Besides boosting the country with tax proceeds, legalizing gambling would also help move the country’s economy and reduce the share of the black market.

Legalization of Gambling Faces Opposition in the Country

Considering that previous efforts to legalize gambling have failed, Passos pointed out that the main opponents of the activity remain the “evangelical bench” as well as Brazil President Jair Bolsonaro, who vowed to veto gambling laws. Passos revealed that one way to get past a President’s veto is by first voting for gambling in the Chamber and then in the Senate. According to him, voting in such a way would “overturn the veto.”

But even if that happens, a gambling law must also find a way through to the evangelical leaders. On that point, Passos said that although he respects the opinion of evangelical leaders, he doesn’t understand why they are opposing gambling. He added that according to evangelical leaders, gambling increases addiction. However, Passos stressed that not legalizing gambling means that the country has been losing revenue for more than 7 decades.