Brazil Approves Bill to Legalize Casinos and Betting

Brazil’s Justice and Citizenship Commission (CCJ) has taken a significant step towards legalizing various forms of gambling, including casinos, bingo, the popular jogo de bicho, and horse racing bets. The bill, PL 2,234/2022, received approval on June 19 with a close vote of 14 to 12. Having already cleared the Chamber of Deputies, it will head to the Senate for further deliberation.

Senator Irajá, speaking during the CCJ meeting, highlighted the potential benefits of regulated betting and gaming, calling it a “great opportunity” for the country. He emphasized that legalizing these activities could lead to job creation, increased income, and higher tax revenues, which would support essential services such as healthcare, education, and infrastructure.

The bill sets out detailed regulations for casinos, betting machines, bingo, and animal racing, including tax provisions. It proposes the introduction of two new taxes: the Gaming and Betting Inspection Fee (Tafija) and the Economic Intervention Contribution on the marketing of games and betting (Cide-Jogos).

Under the proposed law, Tafija would be payable quarterly, with casinos facing a total annual fee of R$600,000, online gaming venues R$300,000, and bingo halls, Jogo de Bicho operators, and tourism companies R$20,000 each. Additionally, the Cide-Jogos tax would be set at 17% of gross revenue, and prizes exceeding R$10,000 would incur a 20% income tax.

If the bill becomes law, casinos would be permitted in tourist areas or integrated leisure complexes, specifically in resorts and hotels with at least 100 rooms, bars, and meeting spaces. This requirement was an amendment introduced by Senator Ângelo Coronel. Casinos would also be allowed on ships with a minimum of 50 rooms, subject to specific river length criteria.

There would be a restriction of one casino per state and the Federal District, except in larger states like São Paulo, which could have up to three casinos, and Minas Gerais, Rio de Janeiro, Amazonas, and Pará, which could each host two casinos. Operators would need to demonstrate a minimum paid-up share capital of R$100 million to be eligible for a license.

Several live casino suppliers have already entered the Brazilian market through partnerships with local operators. Pragmatic Play is one of them, and one of the most recent agreements was the one signed with bplay.

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PL 2,234/2022 includes measures to protect bettors, such as the establishment of the National Registry of Prohibited Persons (Renapro), a self-exclusion program for land-based gamblers. Casinos would be required to verify that patrons are not registered with Renapro before allowing entry.

The bill also proposes the creation of a National Policy for the Protection of Players and Bettors, which would establish rules for fair play and discourage compulsive gambling behaviors.

New criminal offenses related to gambling are also introduced in the bill. Participating in or promoting unlicensed games could result in up to four years in prison, with doubled penalties if minors are involved. Tampering with game outcomes could lead to a seven-year prison sentence, with doubled penalties if the victim is a minor, elderly, or listed in Renapro.

Brazil has been moving swiftly towards a regulated gaming industry since President Luiz Inácio Lula da Silva signed Bill 3,626/2023 in December, legalizing sports betting and iGaming. The Ministry of Finance has then detailed the steps required for implementation, aiming to legalize these activities by the end of July.

Currently, Brazil is in stage three of this process, where the Regulatory Policy of the Prizes and Betting Secretariat (SPA), the national gaming regulator, is setting technical and security standards for igaming operators.

Source:

, igamingbusiness.com, June 20, 2024.