Brazil's Supreme Federal Court will hear a case on 5 August that could change the legal status of land-based casinos. Judges will examine whether the criminal prohibition on games of chance, in force since 1941, remains compatible with the 1988 Constitution.
At issue is Article 50 of Decree-Law 3,688/1941, which criminalises the operation of gambling. The appeal has been granted general representative status (Theme 924), meaning the STF ruling will bind all courts in Brazil. The case was brought by the public prosecutor's office in Rio Grande do Sul after a local appellate court found Article 50 incompatible with the constitutional principle of freedom of enterprise.
The court is not deciding whether to legalise casinos. Its task is to determine whether criminal prosecution of operators remains constitutionally valid. If the STF strikes down Article 50, the criminal basis for prosecution disappears, but that would not automatically create a regulated market. A licensing system would require separate legislation covering licensing, taxation and oversight.
Meanwhile, Bill 2,234/2022 on legalising land-based casinos, bingo, jogo do bicho and horse-race betting is under discussion in parliament. The bill's rapporteur, Senator Irajá Abreu, said in June that regulation would deliver economic benefits and stimulate tourism. He cited support in the senate and argued the sector could revive the dormant tourism industry, pointing to countries where tourism grew after legalisation.
The hearing will take place at the first plenary session after the July judicial recess.
