Brazilian Federal Police Oppose Land-Based Gambling Legislation Over Money Laundering Concerns

Federal Police Seek to Block Casino Regulation

Brazil’s Federal Police are attempting to halt the regulation of land-based casinos, which is expected to be voted on in the first half of 2024. According to CNN Brasil, law enforcement officials have expressed concerns that legalising physical gambling venues could lead to increased money laundering activities.

Opposition to the Legislation

The proposed bill seeks to legalise casinos, jogo do bicho, bingo, and horse race betting. However, it has faced significant resistance, including from politicians such as Senator Eduardo Girão, who has stated that regulating land-based gambling would be a mistake.

CNN Brasil reports that the Federal Police have submitted a list of legislative proposals they either support or oppose to the Ministry of Justice and Public Security (MJSP). This document, signed by the Deputy Director of the Federal Police, Wiliam Murad, explicitly lists land-based gambling as one of the national projects they oppose due to the risks associated with money laundering.

Delays in Legalisation Process

The bill was narrowly approved by the Committee on Justice and Citizenship in June 2024, passing with a vote of 14-12. Since then, it has faced multiple delays, most recently in December, when Senator Irajá Silvestre withdrew it following a debate on its content. Despite ongoing opposition, the bill is still expected to pass within the first half of 2024, with key stakeholders predicting that President Luiz Inácio Lula da Silva will sign it into law.

Potential Tourism Boost

While concerns over gambling addiction persist, legalising land-based casinos could provide a significant economic boost to Brazil’s tourism sector.

Alex Pariente, Senior Vice President of Casino and Hotel Operations at Hard Rock International, commented in September that the introduction of land-based gambling could be highly beneficial for Brazil’s tourism industry. He highlighted the example of the Dominican Republic, which, despite being much smaller than Brazil, attracted over 10 million tourists in 2023, compared to Brazil’s six million visitors.

“Brazil is an incredibly beautiful and diverse country,” Pariente told iGB. “There is so much to see, but we lack a clear and consistent tourism policy to attract more visitors.”

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