Brazil is once gambling that is again mulling, lawmakers in the cash-strapped country in the midst of economic devastation scrambling to find ways to invest in the government without putting extra tariffs on residents.

The Brazilian Senate Commission for Regional Development and Tourism voted this week in favor of Bill 186 of 2014, legislation that would authorize up to 35 land-based casinos and permit gambling enterprises to commence operations online.

Casinos are prohibited in the country since 1946.

Illegal gambling in Brazil is estimated to be a nearly $5 billion industry that is annual and legislators affirm tapping into that market is needed to offset a dismal economic year for the country. Moody Investors Service recently downgraded Brazil to ‘Junk Status’ citing an economy that is rapidly deteriorating ‘worsening governability.’

Public Opinion

Legalizing gambling and Internet casinos seems to be a viable solution to make up at least part of the mounting spending plan deficit. Persuading residents to get behind gambling might be a more difficult task than in other countries.

Brazilians associate gambling with corruption, many believing the venues become nothing a lot more than resources from criminal syndicates to meet and exchange monies.

‘ You talk about gaming and people think about fraud, money laundering, addiction and mafia,’ Sao Paulo lawyer Luiz Felipe Maia told Reuters.

Neymar Jr, the country’s most famed soccer star of late, signed a sponsorship deal with PokerStars in 2015. That might help change the opinion that is overall of and gambling one of the newer generation.

On the other hand, it may not.

Brazil is currently seeking Neymar on claims of tax evasion. Judge Carlos Muta affirmed in September that the athlete owes Brasilia almost $16 million in taxes stemming from 2011 to 2013.

Inadequate Too Late

It isn’t hard to understand Moody’s labeling of ‘worsening governability’ in Brazil, the globe’s fifth-largest nation by area. Deciding to potentially legalize gambling now comes at a rather strange and perhaps baffling time.

Less than 18 months ago, the nation played host to the most active and lucrative event that is sporting the world: the entire world Cup.

The 2014 month-long competition generated an estimated $130 billion in legal and illegal bets all over the world. Brazil profited zero dollars on that colossal pot.

Of course, Brazil does have another spectacle that is international its way by means of the 2016 Summer Olympics. Nonetheless, hosting the wintertime or Summer Games tends to place financial strains on presenting countries.

‘They have political and difficulties that are economic’ International Olympic Committee Vice President Craig Reedie stated recently to the Associated Press. ‘They have challenges. I think they and we shall have to get through it.’

Now that Bill 186 has passed committee, the proposition will head to the Senate’s general assembly. Then off to President Dilma Rousseff’s desk for her signature, assuming she isn’t impeached before its arrival if approved, it would next make its way to the House of Representatives for endorsement and.

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