The Justice and Citizenship Commission (CCJ) approved this Wednesday (19), by 14 votes to 12, the bill that authorizes the operation of casinos and bingos in Brazil, legalizes gambling and allows betting on car races. horses.
The text now goes to the Senate Plenary for a vote.
PL 2,234/2022, already approved by the Chamber of Deputies, received a favorable vote from the rapporteur, senator Irajá (PSD-TO), who accepted suggested amendments and proposed adjustments.
At the meeting, Senator Irajá mentioned that countries that “responsibly regulated” gaming and betting had social and economic growth, with an increase in the flow of tourists.
The rapporteur stated that investments following the approval of the project could reach R$100 billion, with the generation of around 1.5 million direct and indirect jobs. The potential revenue per year, according to him, would be R$22 billion, divided between the states, municipalities and the Union.
“We can no longer lose this great opportunity that other competing countries have already understood and seen to generate jobs, income and taxes, which will obviously be reversed into benefits for the Brazilian people in the most essential areas, such as health, education, social and infrastructure”, he said.
According to the rapporteur, the various types of games currently considered illegal would have generated something between R$14.3 billion and R$31.5 billion in 2023. The estimate considered data from 2014 with the inflation update as a basis.
“Even as a misdemeanor, gambling already constitutes a relevant economic activity and, as such, should be subject to regulation by the State”, argues the senator.
The proposal has been under analysis in the Senate since 2022
The proposal has been under analysis in the Senate since 2022. The original text was presented in the Chamber in 1991. Parliamentarians against the text claim that the project could encourage ludopathy (gaming addiction) and crimes, such as money laundering, trafficking and prostitution.
Members of the evangelical bench are the biggest critics of the proposal. For Senator Magno Malta (PL-ES), gaming addiction is as “harmful” to society as drug addiction.
President of the CCJ, senator Davi Alcolumbre (União-AP) reported at the meeting that the project had already been discussed several times, but had not yet been voted on due to lack of consensus.
The project establishes specific rules for different types of games.
According to the rapporteur, by establishing numerical quantity limits for commercial establishments that can offer casinos, bingo and Jogo do Bicho, the project “facilitates inspection by the Ministry of Finance and allows greater State control of possible negative externalities”.
Casinos
According to the approved text, the installation of casinos in tourist centers or integrated leisure complexes will be authorized, that is, high-end resorts and hotels with at least 100 rooms, in addition to restaurants, bars and places for meetings and cultural events.
An amendment by Senator Ângelo Coronel (PSD-BA) included in the text determined that casinos must operate in integrated leisure complexes or vessels specifically intended for this purpose.
There will be a limit of one casino in each state and the Federal District, with the exception of São Paulo, which may have up to three casinos, and Minas Gerais, Rio de Janeiro, Amazonas and Pará, which may have up to two, each, in ratio of the size of the population or territory.
Casinos may also be installed on maritime vessels (with a limit of ten, throughout the country) and on river ships with at least 50 rooms, within the following limits: one casino on each river with a length between 1.5 thousand and 2.5 thousand kilometers; two in each river with a length between 2,500 and 3,500 kilometers; and three in each river with a length of more than 3,500 kilometers.
River vessels with casinos cannot be anchored in the same location for more than 30 days in a row.
To operate, each casino — defined as a place where games of chance or skill are played through bets on roulette wheels, cards, dice or gaming machines — will need to prove a minimum paid-up share capital of at least R$100 million.
Accreditation will be valid for 30 years, renewable for the same period.
Bingo
The bingo game can be played permanently in specific locations, both in card format and in electronic and video bingo formats.
There may be a bingo house in each municipality, with larger cities being able to have one establishment for every 150,000 inhabitants.
Municipalities and the Federal District will be authorized to play bingo games in stadiums with a minimum capacity of 15 thousand fans, as long as this is not occasional.
Bingo houses will be authorized to operate for 25 years, renewable for the same period. To apply for authorization, they will need to prove a minimum paid-up share capital of R$10 million.
Jogo do bicho
In each state and the Federal District, one legal entity for every 700 thousand inhabitants may be accredited to explore the animal game.
In Roraima (the only state with a population below this limit, according to the 2022 Census) the installation of a Jogo do Bicho operator will be allowed.
Legal entities may be authorized to operate Jogo do Bicho for 25 years, renewable for the same period. To apply for authorization, they will need to prove a minimum paid-up share capital of R$10 million.
Turf
Betting on horse races may be operated by tourism entities accredited by the Ministry of Agriculture. These same entities may also be accredited to operate, at the same time, bingo and video bingo games, as long as it is in the same place where turf competition takes place.
Machines
The project also regulates the rental of betting machines and requires the registration of all of them with the public authorities, as well as the carrying out of periodic audits.
Gaming and betting machines must be operated in a proportion of 40% for the rental company and 60% for the bingo or casino establishment, on the gross revenue, this being the difference between the total bets placed and the prizes paid.
Taxation for casinos, bingos and other games
Two new taxes will be created and must be paid by licensed gaming and betting operators: the Gaming and Betting Inspection Fee (Tafija) and the Economic Intervention Contribution levied on the marketing of games and betting (Cide-Jogos) .
Bookmakers will be exempt from other taxes and contributions.
Collected from the National Treasury, Tafija must be paid every three months, amounting to R$600,000 for casinos; R$300,000 for online gaming houses; and R$20,000 for bingo halls, Jogo do Bicho operators and tourism entities.
Cide-Jogos will have a rate of up to 17% (which may be reduced at the discretion of the Executive Branch) for all entities that operate games and bets, focusing on gross revenue — that is, the difference between the total bets placed and prizes paid.
Of the amount collected,
- 16% will go to the States Participation Fund,
- 16% to the Municipal Participation Fund (FPM),
- 12% to the Brazilian Agency for International Tourism Promotion (Embratur),
- 10% for actions in the field of sport,
- 10% to the National Culture Fund.
The remainder will be used in actions to prevent gaming addiction, in health, public safety, animal protection, student financing, actions in areas impacted by natural disasters and in the National Fund for Children and Adolescents.
In addition, gaming and betting operating entities must allocate 1% of gross revenue to the training of athletes, with transfers made directly to the Brazilian Club Committee and the Brazilian Paralympic Club Committee.
Prizes valued at R$10,000 or more received by players will pay 20% Income Tax, already withheld at source. The calculation will consider the difference between the prize received and the bets placed by the same bettor in the last 24 hours.
Bettors
People in full exercise of their civil capacity may place bets. People declared insolvent or deprived of the management of their assets and over-indebted consumers who have been, in the last two years, in a judicial process of debt renegotiation will be excluded from the games.
Public agents who are members of bodies responsible for regulating or supervising gaming, as well as administrators and members of gaming house controlling groups, will also be prevented from placing bets.
PL 2,234/2022 provides for the creation of the National Registry of Prohibited Persons (Renapro), a register of people who will be prevented from placing bets and even entering casinos and other places where games are played, including applications and electronic websites.
Gaming houses must check whether or not people requesting entry to these establishments are registered with Renapro. The inclusion of names in the register may be done at the request of the citizen, by court order or by the Public Prosecutor’s Office.
Bets placed by prohibited persons will be considered void, as will the obligations and promises related to the games assumed by them.
The approved text creates the National Policy for the Protection of Players and Bettors, with measures to guarantee the honesty of games and discourage compulsion. Bettors must be clearly informed in advance about the rules of each game and the probabilities of winning.
All stages and routines must be transparent, and it must be ensured that the winners will be random and unpredictable. The project establishes that at least 80% of the amounts collected must be used to reward players in casino games, bingo, online bingo and video bingo. In the case of Jogo do Bicho, the minimum will be 40%.
The text provides that gaming operating entities must maintain trained staff to answer questions and receive complaints from bettors, and it is prohibited for these employees to also act in carrying out, promoting or offering games.
Gaming and casino advertising
Gaming advertising cannot use children and teenagers, nor associate placing bets with financial and social success or seek to instill the idea that betting is something virtuous. Nor may it negatively represent anyone who chooses not to bet or opposes games for any reason.
Furthermore, gaming and betting operating entities may not offer loans, bonuses, advances or any type of prior advantage to bettors, not even as a promotion.
They also cannot enter into partnerships or agreements with other companies in order to facilitate access to credit for certain categories of bettors. Agencies or representations of companies that grant credit may not be installed on its premises.
The project also determines that contracts and promises involving the transfer of assets to guarantee or pay gambling debts will not be legally valid. Furthermore, only debts contracted with regularly licensed entities will be considered valid.
Prevention
PL 2,234/2022 provides for the regulation, by the Executive Branch, of guidelines to prevent and combat the use of gaming and betting operating entities for money laundering and terrorist financing practices.
Bookmakers must collect and verify registration information from their employees, service providers and bettors and monitor suspicious behavior.
Bets cannot be placed using banknotes directly on electronic machines or gaming tables. All bets and prizes paid must be registered in a specific system, the Audit and Control System. The Executive Branch must have full access to the data.
At the suggestion of Senator Alessandro Vieira, the rapporteur included in the substitute that the obligations and penalties provided for by Law 9,613, of 1998, which deals with money laundering, will also apply to games and betting.
Amendment by senator Mecias de Jesus (Republicanos-RR), accepted by the rapporteur, prevents people convicted of crimes related to money laundering, human trafficking, exploitation of prostitution and terrorism from taking up positions in statutory bodies of gaming and betting operating entities.
Fines
The project lists a series of administrative infractions that may subject betting operators to sanctions such as a warning, suspension of activities for up to 180 days, revocation of the operating license, prohibition on obtaining a new license and a fine, which could reach R$2 billion. for infringement.
Among the infractions foreseen are exploiting games and betting without due authorization; carry out operations that do not comply with the authorization granted; make it difficult for the competent body to supervise; and fail to comply with other legal regulations.
Crimes against gambling in casinos, bingo and other modalities
The project typifies new crimes against gambling and betting. Exploring games that do not comply with the requirements of the law or exhibiting or selling games without authorization may result in up to four years in prison.
If such practices involve minors, the penalty will be doubled. Receiving bets illegally can result in up to a year in prison.
Rigging games and tampering with results, in turn, can lead to up to seven years in prison. The penalty will be applied double if the victim is an elderly person, a minor or a compulsive gambler registered with Renapro. Allowing minors under 18 to enter or participate in betting could result in up to two years in prison.
