Brazil: The Influence of Religious Mentality on Gambling Regulation

The global gambling industry has eagerly awaited legislative changes in Brazil, particularly concerning the regulation of gambling and sports betting. An article in IGB's specialized publication delves into how religion and the religious mindset of local residents impact attitudes toward gambling and the progression of gambling legislation in Brazil.

Are Latinos Religious?

Surprisingly, Latin America has no official state religion, but Christianity is deeply intertwined with the region's identity. "Latin Americans are overwhelmingly Christian," says Magno José, editor of BNLData and president of the Instituto Brasileiro Jogo Legal. "In most countries, the number of Christians exceeds 80%, including Catholics and evangelicals."

According to José and Hugo Baumgartner, vice president of global markets at Aposta Ganha, religion is playing an increasingly influential role in regional politics. "The power of religion on the continent and its influence in institutional politics are well known," explains José. "More and more religious people, both progressive and reactionary, are coming together to promote their projects in the public sphere."

Baumgartner adds, "Religious influence is growing year by year, with the number of different types of religions increasing. Today, they even have their own politicians, forming groups to exercise their power and influence."

Influence of Religion on Law in Brazil

Notwithstanding Brazil's status as a secular country, religion wields a potent influence over gambling policy and broader politics, unlike many other Latin American nations. Brazil even observes a national holiday, Freedom from Religion Day, celebrated on January 7th.

According to the Global Religion 2023 study of 26 countries, Brazil boasts the highest percentage of citizens believing in God or a higher power, standing at 89%. This widespread religious belief has predictably shaped the country's political landscape.

"Over the past 82 years, numerous topics, including the legalization of gambling, have sparked intense debates at the highest political and public levels in Brazil," explains Zose. "For outsiders, understanding the lack of objectivity and common sense among Brazilian politicians in gambling discussions is challenging. Religious concerns frequently contaminate and distort these debates."

In recent years, Brazil has experienced a seismic rise in the influence of the evangelical movement, with approximately a third of the population identifying as evangelical as of 2022. Consequently, evangelical lawmakers actively opposed Bill 3626/2023, which aimed to regulate sports betting and gambling, nearly halting its progress.

"Brazil remains the most pivotal country where gambling faces staunch religious opposition," notes Felipe Fraga, a Latin America expert. "This is due to Brazil having the highest proportion of evangelicals among the most populous countries, alongside the formidable political clout of the neo-Pentecostal movement."

In conclusion, Brazil's unique religious landscape profoundly influences its legislative process and policy outcomes, particularly in contentious areas such as gambling regulation.

Religious Opposition and the Impact on the Black Market

In Brazil, the debate over gambling regulation has highlighted significant concerns about the operation of black and gray markets. According to Baumgartner, the religious arguments of evangelicals may inadvertently exacerbate these issues.

"Evangelicals argue that gambling is against their faith and God," Baumgartner explains. "They use this stance to sway other politicians, viewing gambling as 'the devil's business'. However, they fail to grasp that times have changed and regulating gambling is preferable to leaving it in unregulated gray and black markets."

Fraga, an evangelical himself, agrees with this perspective, emphasizing that regulation can protect Brazilian citizens. "From a societal perspective, we consider the risks of addiction and its impact on society, as well as concerns about money laundering and match-fixing," he says.

Evangelicals and other religious leaders in Brazil are concerned that legalizing gambling will promote negative behaviors and criminal activity. Conversely, supporters of gambling legislation argue that these fears are unfounded, as regulation would ensure taxation of the industry and enhance public safety.

"This is precisely what the industry needs: clear rules to provide modern entertainment options," adds José.

José points out that evangelical opposition often centers on the perceived destruction of family values. He notes that the National Conference of Bishops of Brazil (CNBB) recently described gambling as causing "irreparable moral and social damage, especially harmful to family life and relationships."

The CNBB stated, "Voting in favor of gambling would effectively mean disregard for life, family, and its core values."

However, the dispute extends beyond moral arguments. Religious leaders and their supporters also highlight industry problems like money laundering and tax evasion, which they argue could be better controlled through regulation.

Yet, José contends, "Religious leaders and their supporters fail to recognize that banning gambling drives the industry underground, into the black market. Clear regulation is the only safe way to mitigate the negative consequences associated with the gambling industry."

In conclusion, while religious opposition in Brazil aims to protect societal values, it inadvertently risks perpetuating the very issues it seeks to address by driving gambling into unregulated markets. Advocates for regulation argue that a legal framework would provide safeguards against criminal activities and ensure responsible gambling practices.

The Long Road to Gambling Regulation in Brazil

The influence of religion on gambling legislation in Brazil has shaped a complex and lengthy journey. Gambling was initially banned in the country in 1946 under the influence of religious beliefs. Despite this, bingo was briefly legalized between 1994 and 2005 before facing prohibition once again.

The adoption of Bill 3,626/2023 in December 2023 marked a significant milestone and received a positive response after years of anticipation. Currently, Brazil is actively working towards regulating its gambling and sports betting market. The Ministry of Finance, in collaboration with the newly established Secretariat for the Regulation of Prizes and Betting, continues to release market regulations. These rules include provisions such as banning payments by credit cards and cryptocurrency.

The road to regulation has been arduous, but with the adoption of the new bill and ongoing regulatory efforts, Brazil is moving closer to establishing a structured and controlled framework for the gambling industry.

Could Brazil Deregulate?

Despite recent regulations, Brazilian gambling experts warn that the industry may face challenges in the future.

"There is a significant risk of regression," warns José. "While I don't believe the gambling laws will be completely repealed, religious leaders could hinder industry expansion and attempt to suppress existing gambling operations."

Many experts in Brazil argue that the ecumenical opposition, which criticizes the possibility of legalized gambling, should consider the substantial benefits of legal gambling compared to the drawbacks cited by opponents.

Baumgartner emphasizes that gambling is fundamentally a business, and its acceptance in other countries has neutralized opposition and changed public perceptions.

Experts and companies planning to enter the Brazilian gambling market believe that talk of repealing the law is premature, at least for now. According to Fraga, "As long as the industry grows in Latin America and demonstrates its importance to society—creating jobs, boosting the economy, providing entertainment, and addressing addiction—there will be no justification for repealing the laws."

"Even considering the risks, significant changes are unlikely to occur in the near future."

In conclusion, while concerns about potential deregulation persist, the consensus among experts is that as long as the gambling industry in Brazil continues to grow responsibly and contribute positively to society, the regulatory framework is likely to remain intact.