Brazil is suffering a prolonged economic downturn and recession with budget cuts and tax increases attempting to remedy a crippled government budget. Another idea is being entertained and that is to increase revenues through gambling taxes with a potential move to legalize gambling in the country.

Historically, proposals to legalize gambling in Brazil have been met with stiff opposition from ministers with close ties to the Roman Catholic Church, but the current economic crisis may cause some of them to rethink their positions or at least take the issue to their constituents to test the waters.

A current proposal being considered would wrest control of a popular lottery game, known as animal game or locally, “jogo do bicho” from underground operators in 25 states. The game is currently only legal and regulated  in the state of Paraiba, but enjoys widespread participation elsewhere including Rio de Janeiro. The proposal would legalize many forms of gambling including online casinos – this move to keep the flight of capital out of the country to offshore casinos neatly within the Brazilian economy. Large scale casinos could also be built under the proposal.

The proposed legislation is to be crafted after successful laws in Western Europe according to a report on G3 Newswire.