Todd Eilers, founder of Eilers Research, LLC and Director of Research of the firm, said in a report that Brazil could turn into a major slots market if the country eventually legalizes casino gaming.
According to Mr. Eilers, Brazil will be able to operate 25 casinos with an average of 1,000 slot machines at each. Thus, the country will have at least 25,000 Class III gaming devices. What is more, Mr. Eilers said that the machines would likely be sold than leased to operators.
Another 195,000 Class II devices may be demanded if 600 bingo halls open doors in Brazil and feature an average of 325 devices each. Under a proposed bill, the country could open up to 35 casinos as well as one bingo hall per every 150,000 residents.
The legislation was voted in favor of by the Senate Commission for Regional Development and Tourism last week and is to be presented to the House of Representatives for the necessary approval.
Casino gambling was banned in Brazil back in 1946. If approved, Bill 186/2014 would allow for the construction of land-based casinos and bingo halls across the country and would provide the necessary regulatory framework for Internet gambling.
Earlier this year, a similar proposal was voted in favor of by House members but was turned down by President Dilma Rouseff. Commenting on her decision, she said that the previous bill would have called for a “more comprehensive regulation” that would provide “adequate levels of fraud control and tax evasion.”
Proposed by Senator Blairo Maggi, Bill 186 is part of a special legislative package that includes measures for the country’s economic recovery. This year, Brazil has reported its worst economic growth performance in more than two decades. This is why legislators have been looking for urgent measures to avoid a serious economic crisis. If approved, the casino effort would result in more than BRL15 billion being annually contributed to the country in tax revenue.
As already mentioned, apart from the land-based casinos and bingo halls, Bill 186 is also focused on the legalization and regulation of online gambling. If backed by lawmakers, the proposal would open the country’s gaming market to international Internet gambling operators that tend to work with regulated markets.
According to Mr. Eilers as well as other analysts, Brazil is now closer to legalizing its casino industry than it has ever been before due to the challenging economic environment in the country. If the bill passes early in 2016, Brazil is likely to open its first casinos in 2019.
