The State of Play: Gambling in Brazil

The laws around gambling in Brazil represent an ever-changing history. One day it’s legal; the next it’s not. Yet, no matter the status of the law, clandestine gambling sites always existed.

From the 1930s to the 1940s, you could find approximately seventy casinos throughout Brazil, including one inside the famous Copacabana Palace in Rio. But in 1946, all games of chance were prohibited by presidential decree.

Then, after nearly fifty years, a new era began. Two laws enacted in 1993 and 1998 authorized bingo establishments. The game became so popular that huge buildings started showing up. That is, until 2003 when bingo halls were once again declared illegal.

Despite being banned, bingo never really went away. Bingo halls were replaced by suspicious doors around the city where people could be seen entering early in the evening. Last year in São Paulo, they came back disguised as charities due to a loophole in the law.

So what about horse racing, poker, and sports betting? Well, they’re all allowed but for different reasons. A law enacted in 1984 states that bets on horse races are authorized only in jockey clubs. As to poker, it’s authorized because it requires some mental acuity rather than sheer chance. And finally, betting on sports is allowed under Law 13.756, which passed in 2018.

It’s estimated that BRL$4 billion is spent on online sports betting every year in Brazil. Considering the potential tax revenue, don’t be surprised if the government looks for ways to incentivize gambling going forward.