Brazil marks 80 years since the shameful law that banned casinos in the country.
On April 30, 1946, President Marshal Eurico Gaspar Dutra signed Decree-Law 9.215, which mandated the immediate closure of all casinos in Brazil. This Thursday (30), the law turns 80 years old. Dutra made the decision one hundred days after assuming the presidency, influenced by the Minister of Justice Carlos Luz, Cardinal Dom Jayme de Barros Câmara and his wife Carmela Dutra, known as “Dona Santinha” due to her Catholic devotion.
Carmela Dutra was an influential religious figure in power circles during the 1930s and 1940s. A teacher and widow from a first marriage, she was very active among the group of Catholic educators who preached "the re-Christianization of the country" and was close to the Catholic Electoral League (LEC). Historical documents show that she actively participated in dinners with diplomats, church inaugurations, and social campaigns, and was frequently photographed alongside President Getúlio Vargas in a prominent position—a sign of her political influence.
According to records from that time, she was seen as "an example of a wife, mother, Brazilian, and Christian," and she bombarded Dutra's ears with sermons she heard from priests. Not even the argument that gambling taxes financed the social works for which she, as first lady, was responsible, moved her.
The historical irony lies in the fact that Dutra had been elected with the support of Getúlio Vargas, the same president who, 12 years earlier, had authorized the operation of casinos in the country.
The measure extinguished an economic activity that operated in more than 70 establishments distributed between Rio de Janeiro and inland cities, such as São Lourenço, in Minas Gerais. The industry employed approximately 55 people.
Casinos functioned as entertainment complexes in the 1930s and 1940s.
Between the 1930s and 1940s, Brazilian casinos operated as entertainment complexes. These establishments offered games like roulette and baccarat, as well as orchestras and performances by renowned artists. They also featured restaurants and shows that launched the careers of artists such as Carmen Miranda.
Experts say that the Brazilian casino model was so sophisticated that it served as inspiration for Las Vegas. “I constantly hear in Las Vegas that their model was copied from Rio de Janeiro. Why? Because here there were hotels, shows, restaurants; it was a spectacle of entertainment. In the US, in the beginning, it was just gambling,” explains Magnho José, president of the Legal Gambling Institute – IJL.
The industry generated direct and indirect jobs for croupiers, waiters, musicians, cooks, seamstresses, and security guards. More than 70 casinos operated legally during this period. The establishments were mainly concentrated in Rio de Janeiro and tourist resorts in Minas Gerais. Among the most luxurious were the Quitandinha, in Petrópolis—built from 1941 onwards to be the largest casino-hotel in South America—and the Urca, Atlântico, and Copacabana Palace casinos in Rio de Janeiro. In São Lourenço, Minas Gerais, there were eight establishments linked to casino operations.
The prohibition of gambling in the country dates back to the Imperial period. In 1920, the Executive Branch authorized the operation of casinos in seaside resorts and hotels. The objective was to stimulate health tourism and increase local tax revenue. Throughout the 1920s, however, these establishments were frequently closed by court rulings and state laws, until they were banned in 1924.
From 1930 onwards, during the centralization of the State under Getúlio Vargas' policies, casinos expanded their operations. It was Getúlio who legalized gambling throughout the country in 1934. Large establishments emerged in Rio de Janeiro, Petrópolis, Poços de Caldas, and other cities. Casinos attracted tourists, celebrities, and high-net-worth clients. In 1941, Vargas prohibited only the jogo do bicho (a type of illegal lottery) through Decree-Law No. 3.688, of October 3, 1941 (Law of Criminal Offenses), keeping the casinos in operation.
The president justified the closure with moral and religious arguments.
The decree of April 30, 1946, halted this activity without a transition period. Dutra justified the prohibition by citing the "moral, legal, and religious tradition" of the Brazilian people. The president argued that gambling was incompatible with "good morals" and considered "the abuses harmful to morals and good customs."
DECREE-LAW No. 9.215, OF APRIL 30, 1946
It prohibits the practice or exploitation of gambling throughout the national territory.
The President of the Republic, using the powers conferred upon him by Article 180 of the Constitution, and
Considering that the suppression of gambling is an imperative of universal conscience;
Considering that the penal legislation of all civilized peoples contains precepts tending to this end;
Considering that the moral, legal, and religious tradition of the Brazilian people is contrary to the practice and exploitation of gambling;
Considering that, as a result of the exceptions made to the general law, abuses harmful to morality and good customs have arisen;
Considering that the licenses and concessions for the practice and operation of gambling in the Federal Capital and in hydrotherapy, spa, or climatic resorts were granted on a temporary basis, and may be revoked at any time:
DECREE:
Article 1. The validity of Article 50 and its paragraphs of the Law on Criminal Offenses (Decree-Law No. 3.688, of October 2, 1941) is hereby restored throughout the national territory.
Article 2. This Law revokes Decree-Laws No. 241 of February 4, 1938, No. 5.089 of December 15, 1942, and No. 5.192 of January 14, 1943, and any conflicting provisions.
Article 3. All licenses, concessions, or authorizations granted by federal, state, or municipal authorities, based on the laws hereby repealed, or which in any way contain authorization contrary to the provisions of Article 50 and its paragraphs of the Law on Criminal Offenses, are hereby declared null and void.
Article 4. This law enters into force on the date of its publication.
Rio de Janeiro, April 30, 1946, 125th year of Independence and 58th year of the Republic.
EURICO G. DUTRA
Carlos Coimbra da Luz.
Jorge Dodsworth Martins.
P. Góes Monteiro.
João Neves da Fontoura.
Gastão Vidigal.
Luiz Augusto da Silva Vieira.
Carlos de Souza Duarte.
Ernesto de Souza Campos.
Octacilio Negrão de Lima.
Armando Trompowsky.
Public discourse linked gambling to vices, corruption, and social "danger." The decision was influenced by religious, media, and political pressures. Justice Minister Carlos Luz considered "gambling a moral cancer that ruined good men and destroyed families. The big losers killed themselves." Luz allegedly worked to convince Dutra that the decision to prohibit gambling would be very popular, including with the support of newspapers of the time, which were averse to gambling. The measure had the support of the press and a significant part of the Parliament at the time.
Newspapers such as Correio da Manhã and Jornal do Brasil supported the measure in their publications. Accounts of the government's motivations range from the moralistic convictions of advisors and the first lady to the intention of symbolically breaking with the legacies of the Vargas era. Rumors also circulated—never proven—that the casinos were supplying the family of former president Getúlio Vargas. Businessman Joaquim Rolla, owner of the main casinos in Rio de Janeiro, allegedly had ties to Benjamim Vargas (Benja Vargas), Getúlio's brother, and to the Brazilian Communist Party. Santinha is also credited with influencing Dutra to prohibit PCB activities.
The closure of the casinos occurred abruptly. The newspaper O Globo recorded the last words spoken on the last night of operation of the casino at the luxurious Copacabana Palace hotel, on the Rio de Janeiro waterfront, at 23 pm on April 30, 1946.
“It fell to the casino's then-director, José Caribé da Rocha, to spin the final roulette wheel. Visibly moved, he announced: 'Ladies and gentlemen, place your bets for the last round of roulette in Brazil!' The draw came up 'black 31',” Caribé announced. Businesses went bankrupt. Hotels and tourist complexes lost revenue. 55 workers became unemployed in a country with weak social protection.
The government issued a regulation to avoid paying workers' compensation.
The decree was drafted quickly. Weeks after its publication, the government had to enact another law to try to avoid the obligation to compensate dismissed workers, as stipulated by the CLT (Consolidation of Labor Laws).
The government issued a regulation that eliminated the automatic application of severance payments stipulated in labor laws. Many laid-off workers did not receive compensation. The labor debt remained with the business owners in the sector. Most casino owners went bankrupt after the establishments closed.
The government did not present a plan to assist the thousands of workers who lost their jobs. The measure generated intense debates in the Constituent Assembly. The decision represented a cultural and economic breaking point.
Workers in the sector were left unemployed without government support. The decision affected croupiers, musicians, waiters, cooks, seamstresses, and security guards who depended on the activity for their livelihood.
The ban did not eliminate gambling and generated an illegal market.
The ban did not eliminate gambling in the country. Despite the legal prohibition, gambling did not disappear from Brazil. The activity migrated to illegality. It began to operate without control, oversight, or tax collection.
Even with the prohibition of casinos, Brazil currently has a large supply of unregulated gambling and dozens of clandestine casinos operating outside the law. Over the decades, clandestine activities, informal gambling, and later, betting have proliferated. online Accessible through foreign platforms. With the legalization and regulation of gambling. onlineBrazilians have a wide range of casino games to choose from. online and live on cell phones. Brazil began to live with "unregulated gambling" in the following decades.
Illegal casinos and the jogo do bicho (a type of illegal lottery) began operating outside the law. Prohibition did not eliminate demand or the illegal markets. The country gave up tax revenue and the generation of formal jobs in the sector.
The Brazilian prohibitive model failed to end the game. The policy prevented the collection of billions in taxes. Public policy did not achieve its goal of eliminating the practice.
In the early 1990s, another type of gambling was legalized again in Brazil: bingo. The Fernando Collor government authorized its operation to raise funds for national sports. In the early 2000s, first under the Fernando Henrique Cardoso government and then under Lula, bingo was once again restricted, with the activity being completely banned in 2007.
Other countries adopted regulations while Brazil maintained the ban.
While Brazil treated gambling as a matter of religious morality, other countries began to see the activity as an economic sector. These countries developed regulatory models that generated jobs, tourism, and investments in social causes.
International experience shows that there are no successful examples in countries that have opted for a total ban. The Brazilian prohibitive model failed to end gambling. The policy prevented the collection of billions in taxes.
The current scenario differs from the context of 1946. The internet and casinos. online They made games accessible via mobile phone. Brazil already regulates sports betting. The country still has an offer of unregulated casino games.
The topic has returned to public debate on several occasions. The current debate also includes economic arguments related to job creation, tourism, and tax revenue.
Senate bill proposes controlled legalization of all forms of
Since 1946, several bills have been debated in the National Congress to legalize and regulate casinos, bingo halls, and other forms of gambling. Support for and resistance to these proposals have alternated according to political circumstances and social concerns.
At the turn of the century and in recent decades, proponents of regulation have highlighted economic advantages and modern controls. Opponents have reiterated arguments about social risks and the need for a strong enforcement structure.
Bill 2.234/2022 is currently being processed in the Senate. The bill proposes the controlled legalization of casinos in resorts and tourist areas, bingo halls, and the jogo do bicho (a type of illegal lottery). The proposal acknowledges the failure of the prohibitive model adopted eight decades ago. Under discussion for over 30 years, the bill has already been approved in the Chamber of Deputies and, in 2024, received approval from the Constitution and Justice Committee in the Senate.
The bill is awaiting a plenary vote and has received a favorable opinion from Senator Irajá Silvestre. The proposal under consideration foresees the permission to install casinos in tourist areas or integrated leisure complexes, such as high-end hotels with restaurants and bars. The text also proposes the possible issuance of a license for one casino in each state and the Federal District. Some states would have exceptions, such as São Paulo, which could have up to three casinos, and Minas Gerais, Rio de Janeiro, Amazonas, and Pará, with up to two each, based on the size of their population or territory.
The issue remains a subject of legislative debate. In Congress, conservative and evangelical parliamentarians are the most active in defending against gambling, arguing that environments like casinos increase gambling addiction and create an environment conducive to crime. But the bill also faces resistance from sectors of the left. In the Chamber of Deputies in 2022, PT and PSOL deputies voted overwhelmingly against the bill, which ended up being approved with the support of the majority of the centrist bloc.
In December 2023, amidst discussions about the new law that would legalize gambling, the CNBB (National Conference of Brazilian Bishops) issued a statement asking the Brazilian legislature to "reject the bill to legalize gambling in the country." "A vote in favor of gambling will, in practice, be a vote of contempt for life, family, and its fundamental values. Brazil doesn't need this!" the bishops wrote. This position keeps alive the religious tradition that influenced the 1946 prohibition.
Supporters of regulation also cite issues of social control, such as addiction prevention, combating money laundering, and consumer protection. President Lula has already stated that he is not in favor of gambling, but he also does not believe it is a crime and that he may approve the bill if it is passed by the legislature.
The "shameful law" of 1946, as characterized in public debate, did not eliminate gambling in the country. Current discussion points to regulation as an alternative to repression.
Interestingly, amidst the great controversy that has lasted for decades regarding gambling, one activity has never been prohibited in Brazil: betting on horse races. This so-called turf racing is practiced primarily by the elite.
Beyond the debate surrounding gambling, Brazil is also immersed in a dispute over the sports betting and online gaming market.
In 2018, then-President Michel Temer signed into law the legislation authorizing fixed-odds betting and online gambling, known as online games. bets In Brazil, gambling exists, but without specific regulations for the sector. During Jair Bolsonaro's administration, the government did not regulate the activity, as was foreseen in the new legislation—something that was done in December 2023 during Lula's administration. Regulation allowed the government to tax companies and bettors, as well as oversee the sector.
The 1946 prohibition left ambiguous marks. On the one hand, it symbolizes a moral choice and a state attempt to contain practices considered harmful. On the other hand, it revealed the limitations of prohibitionist policies in the face of persistent black markets.
The balance between permitting, taxing, and regulating, or maintaining the prohibition, remains an open issue. The debate includes relevant arguments about employment, public revenue, social integrity, and consumer protection. “Unfortunately, Brazil started building its house from the roof down by legalizing online gambling first instead of physical gambling. Political actors definitely cannot treat an economic activity recognized in more than a hundred countries as if it were a matter of custom,” argues Magnho José, from the Legal Gambling Institute – IJL.
There is no record in any country in the world of a successful experience, from a social, economic and public safety point of view, among those that have opted for the prohibition of gambling or simply the removal of the State from the control of this activity.
