The physical game and the new legislative perspective according to Senator Irajá
This article was first published in Portuguese on 27 February 2025.
The debate on regulating physical gaming in Brazil has regained momentum in the Federal Senate. According to Senator Irajá, the expectation was that the vote would occur last year. He stated during his participation in the SBC Summit Rio:
“We expected to have voted last year so that we could enter 2025 offering a new business environment, a healthier environment, generating more jobs, more income, investments in production, and national tourism.”
Irajá acknowledges that the legislative process has faced several challenges, mainly due to a “reputation crisis” in the sector. He compared the current situation of the gaming industry to the image crisis that Brazilian agribusiness faced around 25 years ago. Back then, producers engaged in practices such as financial defaults, deforestation, and slave labour.
“Agribusiness rebuilt its image and reasserted itself as a sustainable sector that respects the environment and meets its financial commitments on time.”
For him, the gaming sector must also demonstrate to society and public opinion that the industry can be responsible and legalised.
Brazil and responsible gaming in the international context
Irajá also highlighted that Brazil is among the few G20 countries that have not yet approved the legalisation of gaming, alongside Indonesia, a predominantly Muslim country.
“OECD countries have all approved legalised and responsible gaming, except for Iceland. Here in South America, only Brazil and Bolivia have yet to approve responsible and legal gaming.”
He mentioned that neighbouring countries such as Argentina, Uruguay, Paraguay, and Chile have already regulated the sector and are reaping the benefits, including boosting tourism and economic development. Speaking about tourism, the senator also pointed out how the lack of regulation affects Brazilian tourism.
“Some people enjoy gaming tourism and travel to other countries, but not to Brazil because we do not offer this option. We lose out. Brazil has spent 10 years failing to surpass the mark of 6.3 million foreign tourists per year. Not even the World Cup and the Olympics could break that number.”
He argues that regulating the sector could help increase this number to 12 million in five years, as in other countries adopting similar models.
The impact of tourism on economic growth is significant. Gaming regulation could help Brazil attract investments in hospitality, gastronomy, and the entire entertainment chain. This would further boost the services sector and create new business opportunities. Legalisation would also allow for greater control and oversight of the activity, preventing clandestine operations and ensuring a safe environment for both players and operators.
Expectation of approval in 2025 and the creation of a regulatory agency
“I expext that we will approve it in 2025, and, of course, the government will have time to carry out the regulation. I believe that at some point, we will create a regulatory agency. This is fundamental.”
He stated that this regulation could begin by the end of this year or in early 2026. It would allow specific modalities, such as bingo halls and the ‘jogo do bicho,’ to start operating sooner than expected.
Creating a regulatory agency would ensure the implementation of good practices, oversight, and clear guidelines for the sector’s operation, following international standards. This measure would also help increase transparency and legal security for investors, contributing to a more stable and reliable business environment. He says establishing a regulatory agency is essential, just as in other sectors. Examples such as Anatel and various other agencies exist to regulate, oversee, and maintain order in their respective industries.
The debate on gaming regulation in Brazil is increasingly advancing. Irajá’s speech reflects the Congress’s intention to drive forward a sector that could have a massive economic impact on the country. If well managed, legalisation could pave the way for Brazil’s new economic growth and tourism development cycle.
