Brazilian City moves ahead of Federal debate with local casino law

Araxá positions itself as a pioneer while Brazil’s Congress continues to debate national casino regulation.

The City Council of Araxá, Minas Gerais, has approved a local bill authorizing the concession of tourism-related gaming services to private operators. 

The initiative precedes Brazil’s federal debate on legalizing casinos and other forms of gambling, with Araxá aiming to establish itself as a pioneer in the sector.

Araxá, with around 111,000 residents, has historic ties to casino activity because it hosted Brazil’s first casino in 1944 at its tourist hot spot, Grande Hotel Termas. 

Local officials believe reviving the industry could stimulate the regional economy and reinforce the city’s role as a tourism hub in Minas Gerais.

Ítalo Marcus Borges, the municipal Secretary of Economic Development, pointed to Araxá’s strong hotel infrastructure, expansion capacity, proximity to major markets like São Paulo and Goiás and high Human Development Index. 

“All of this favors the arrival of new ventures,” he said, noting that two new hotels are scheduled to open in 2025.

Good to know: Finance Minister Fernando Haddad has publicly supported casino regulation

Mayor Robson Magela, who authored the local bill, described the law as a step toward preparation. 

“We want to show that Araxá is ready to receive this type of enterprise and ensure benefits reach the population through jobs, income and new investment,” he said.

At the federal level, the bill remains under consideration in the Senate. The measure would regulate casinos, bingo halls and other games of chance, allowing up to three casinos in Minas Gerais.

Carlos Mendez

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