[bsa_pro_ad_space id=1 link=same] [bsa_pro_ad_space id=2]

Skip to Content

Legislation

Brazil – Brazil sets date for Gaming Law vote

By - 21 November 2016

The President of the Senate, Renan Calheiros has said that the Senate will vote on new gaming legislation on December 7 before the Christmas parliamentary recess.

The Special Committee in the Brazilian Senate approved new gambling legislation earlier this month. The bill is an updated and modified version of legislation originally drafted by Senator Ciro Nogueira in 2014 but with a number of significant changes. It now needs to go forward for a vote before the full Senate and must be approved by a majority . If approved it will go before the Chamber of Deputies for approval.

The bill proposes the legalisation of casinos, bingo halls, slot parlours and the popular “Jogo do Bicho” or “Animal Game.” The text defines the types of gaming that can be played in Brazil, the criteria for how licences are to be granted and the rules for the distribution of prizes as well as how gaming is to be taxed in the future. According to the act online gambling will be permitted over all platforms including mobile phones “or any other digital communication channel.”

According to the Senate news portal, online gaming will be run on an exclusive basis by Caixa Econômica Federal, known locally as CAIXA and gaming will come under the supervision of the Federal government. Caixa, meanwhile, will also become the regulatory body and will be responsible for monitoring the industry and granting licences. A bidding process will be initiated and gaming licences will be granted for as long as 25 years depending on the purpose of the licence and may be renewed for the same period but only once.

Casinos will be permitted to operate in new tourist complexes built specifically for that purpose and will be part of hotels which may have additional facilities such as, restaurants, convention centres and performing arts centres. The latest version of the new act also states that at least two-fifths of all casinos will be permitted in the North, Northeast and Midwest regions of Brazil. Casinos will also be permitted as part of jokey clubs which are licensed to run race tracks in cities with over 300,000 inhabitants, provided that they are already established by the time the law is passed.

Meanwhile, bingo halls will be permitted in cities with more than 200,000 inhabitants. However the number of licences will depend on the number of inhabitants but will be limited. So cities with a million people may have up to five bingo halls.

The law also puts in place requirements which will make it obligatory for gaming establishments to keep records on bets as well as security camera footage for five years. In addition the act in its latest version will make it illegal for politicians and their relatives to run or operate gaming establishments in the future.
Tax income generated by gaming will be allocated to social security (91 per cent), the National Penitentiary Fund (3 per cent) and the Federal Police Department (2 per cent). In addition funds will also be allocated to the National Culture Fund (2 per cent) while the remaining two per cent will be earmarked for Olympic and Paralympics sport.

The new text also states that an Income Tax of 30 per cent will be placed on winning bets and operators will have to pay a so called “Gambling Inspection Fee” which will be used to cover inspection costs.

However the bill could face serious opposition in the lower house. Last week it was revealed that more than a third of the members of Brazil’s Chamber of Deputies have signed a petition to block legislation which would liberalise gaming.

Share via
Copy link