Brazil Justice Says Casino Ban Sends Revenue Abroad
Brazil Supreme Court Justice Defends Casino Legalization – Says Current Ban Sends Gambling Revenue Abroad
Key Takeaways
- Supreme Court Justice João Otávio de Noronha said Brazil’s ban on land-based casinos drives gambling revenue to foreign destinations.
- He argued that Brazilian gamblers spend money in places such as Monaco, European cities, and Las Vegas instead of domestically.
- Noronha distinguished between land-based casinos and online betting, stating they should not be treated identically.
- His comments follow a 2025 court decision authorizing the collection in Brazil of a US$1 million casino debt incurred in Las Vegas.
Justice Noronha Criticizes Brazil’s Ban on Land-Based Casinos
Brazilian Supreme Court Justice João Otávio de Noronha has publicly defended the legalization of land-based casinos, arguing that the country’s current prohibition results in a transfer of gambling revenue abroad. He made the remarks during an interview with TV Migalhas at the 14th Lisbon Forum, held in Portugal from June 1 to 3.
According to Noronha, Brazilian citizens regularly travel to international gambling hubs such as Monaco, other European cities, and Las Vegas to participate in casino gaming. As a result, spending that could generate domestic jobs and tax revenue instead benefits foreign jurisdictions. He described the situation as “a system that turns a blind eye to reality and penalizes the State itself.”
Noronha framed the issue as one of regulation rather than moral debate. In his view, the continued ban on land-based casinos does not prevent gambling activity but shifts it beyond Brazil’s borders.
Distinction Between Land-Based Casinos and Online Betting
While advocating for the legalization of physical casinos, Noronha made clear that his position does not extend to online betting in the same way. He argued that land-based casino gambling represents “one that can be controlled,” suggesting a regulatory distinction between in-person and digital formats.
At the same time, he questioned what he sees as inconsistencies within Brazil’s broader gambling framework. During a previous court proceeding, he stated that maintaining a prohibition on casinos while authorizing other forms of gaming creates contradictions in the legal system.
“We can no longer maintain this hypocrisy that gambling is prohibited, but online gaming isn’t. They are authorized, but casinos are not. This is an inconsistency in our legal system,” Noronha said during that earlier session.
He also compared casinos to lotteries and betting sites, arguing that all are games of chance. “What is the difference between a casino and betting sites? None. What’s the difference between a casino and a lottery? None. They’re all games of chance. So why is one allowed and the other not?” he said.
Background: US$1 Million Las Vegas Casino Debt Case
Noronha’s recent comments come in the context of a May 13, 2025 decision by the Fourth Panel of the Superior Court of Justice, or STJ. In that ruling, the panel unanimously authorized the enforcement in Brazil of a US$1 million debt incurred at the Wynn casino in Las Vegas.
The case involved Valdemir Garreta, a former campaign strategist for the Workers’ Party. In 2015, during a trip to Las Vegas, Garreta accumulated gambling losses totaling approximately R$ 5.6 million. After exhausting his financial resources, he signed a promissory note committing to repay the amount but later failed to do so.
The STJ decision allowed the foreign debt to be collected in Brazil. During the proceedings, Noronha criticized what he viewed as legal inconsistency: although casino gambling is banned domestically, Brazilian courts were being asked to enforce obligations arising from lawful gambling activities conducted abroad.
The ruling and the accompanying statements highlight a practical dimension of cross-border gambling. Even when domestic law restricts certain activities, Brazilian residents may legally participate in gambling in jurisdictions where it is permitted, and disputes related to those activities can return to Brazilian courts.
Lisbon Forum Context and Regulatory Debate
Noronha delivered his latest remarks at the 14th Lisbon Forum, an event focused on “New International Order, Technology and Sovereignty: Democratic, Economic and Social Challenges.” Discussions at the forum addressed artificial intelligence, digital platform regulation, child protection in online environments, public safety, and the broader impact of technology on democracy.
Within this setting, Noronha presented the casino debate as part of a wider regulatory discussion. He emphasized that Brazil should directly confront what he described as contradictions in its legal treatment of gambling activities.
For international observers and users of gambling services, the statements underscore that debates over land-based casino legalization remain active at the highest levels of Brazil’s judiciary. Although Noronha’s comments do not constitute legislative change, they reflect ongoing scrutiny of how different gambling verticals are regulated and how cross-border gambling activity interacts with domestic law.
Our Assessment
Justice Noronha’s remarks place renewed attention on Brazil’s prohibition of land-based casinos and its interaction with other authorized forms of gambling. His comments, together with the 2025 STJ ruling on the enforcement of a US$1 million Las Vegas casino debt, highlight legal tensions between domestic bans and international gambling activity. The issue is being framed by a member of the Supreme Court as a matter of regulatory coherence and state revenue, rather than solely as a question of prohibition.
