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Brazil’s commission approves legalisation of casinos and bingo

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The Justice and Citizenship Commission of Brazil (CCJ), has passed a law that will legalise casinos, bingo games, jogos de bicho, and horseracing betting in Brazil.

Yesterday (19th June), PL 2,234/2022 passed with 14 votes against 12. The bill, which was under discussion since 2022, now goes to the Senate plenary in Brazil for another vote.

During the CCJ’s meeting yesterday, Senator Iraja stated that regulating gambling and betting was a great opportunity for Brazil. It would be beneficial to Brazilians.

He said: “We cannot afford to miss this opportunity, that many other countries already understand and are able to create jobs, income, and taxes. These will be redirected into the Brazilians’ most important areas such as education, health, and social infrastructure.”

This bill contains rules governing casino games, gambling machines, horse racing, and animal races, including bingo. It also includes tax. The bill creates two types of taxes, the Gaming and Betting Inspection fee (Tafija), and the Economic Intervention Contribution (CideJogos) levied upon the marketing of gaming and betting.

The bill would require that Tafija be paid out every three months. Tafija amounts to R600 000 for casino, R300 000 for online gaming sites and R20,000 for bingo halls and Jogo de Bicho operators.

Cide-Jogos will tax gross revenues at a rate of 17%. Taxes on prizes exceeding R$10,000 are 20%.

What is the casino rules?

The bill, if it becomes law, would allow casinos in integrated leisure centres and tourist centers. The casinos are classified as hotels and resorts with meeting rooms, bars and at least 100 rooms.

Only integrated resorts will be allowed to operate casinos. The amendment introduced by Senator Angelo Coronel led to this rule.

On boats or ships that have a minimum 50 rooms and meet certain criteria on the length of rivers, casinos would be allowed.

With some exceptions, there would be an upper limit on the number of casinos in each state or Federal District. Sao Paulo can have three casinos while Minas Gerais Rio de Janeiro Amazonas Para and Para each have two.

In order to operate, each casino would need to provide proof of a minimum paid-up share capital of R$100m (PS14.5m/EUR17.1m/US$18.4m).

Bingo and racing: what’s the difference?

The bingo game will be allowed in electronic, card and video formats.

Each municipality would have the right to open a bingo hall. However, larger cities may allow one per 150,000 residents. Bingo houses will be allowed to run for 25 years, subject to renewal, once they have been licensed and vetted. As part of licensing, bingo houses will also be required to prove that they have a minimum of R$10 million in paid up share capital.

According to the bill, one racing entity per 700 000 inhabitants is allowed. The only exception is Roraima which, according to the Census of 2022 is the only country that falls below the threshold. Roraima can have an operator of jogo de bicho instead.

Brazilian tourism companies would operate the betting on specific horseracing events. These entities will need to be accreditated by the Ministry of Agriculture. The entities will also be allowed to offer bingo and video games on the same ground as the racing.

Additional protection for Bettors

The PL 234/2022 introduced a self exclusion program for bettors who wager on land, called the National Registry of Prohibited Persons. The venues must verify that anyone entering the casino has registered on Renapro.

This bill proposes the National Policy for the Protection of Players and Bettors. The bill also proposes the National Policy for the Protection of Players and Bettors.

If PL 2,234/2022 were to be written into Brazilian Law, it would also result in new gambling crimes. Participating in or advertising unlicensed gaming could lead to up to 4 years of prison. The penalty is doubled when the crime involves minors.

A person who tampers with the results or games of a game could face seven years behind bars. This penalty is doubled if the victim is an elderly person, minor or registered at Renapro.

A career in a regulated sector

Brazil is on a fast track towards regulating the gaming industry since Luiz inacio Lula approved Bill 3,626/2023, which legalised sports betting and online gambling, back in December.

Brazil’s Ministry of Finance has laid out the steps to implement sports betting and online gaming. According to this report, igaming and sports betting will be legalized in Brazil at the end of July.

We are currently in the third stage. In this stage, the Regulatory Policies of the Prizes and Betting Secretariats (SPA), which is the gaming regulator in the country, will publish technical and security standards for igaming providers.

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