Legislation

Brazil – Senate Committee approves Brazilian gaming bill

By Phil - 11 December 2015

The Special Committee on National Development has approved Senate Bill Brazil 186/2014 which seeks to establish a regulatory framework for the legalisation of both land based and online gaming.

The text of the new version of the bill would allow for 35 casinos, with at least one per state while some states would be permitted to have as many as three, depending on the population and the economic outlook in each state. Casinos will only be permitted in hotel leisure complexes with venues for meetings and events, restaurants, bars and shopping centres.

The Committee approved the bill which is now being debated as part of “Brazil Agenda” a set of new rules put forward by the President of the Senate, Renan Calheiros – a business-friendly agenda which is designed to provide a much needed boost to economic growth.

The report on the text was introduced by Senator Maggi last week with Senators voting yesterday on the bill (Wednesday 9th). It was approved by eight votes in favour, two against with one abstention. However the bill was not without controversy and a number of amendments were made to the draft which means that the committee will need to vote again on the bill again next week.

Senator Maggi introduced some changes in the text and ratified the amendment of Senator Benedito de Lira which bans politicians from owning gambling houses. In addition, the text includes a restriction, which is that only those people showing full tax compliance with local laws may participate in the operation of gaming.

Senator Cristovam Buarque opposed the bill, arguing that gaming encouraged illegal practices such as drugs and prostitution while Senator Gleisi Hoffmann announced that he would abstain from voting saying that he had “many doubts” about the project and felt that it should be discussed more deeply. He also added that “gaming encourages other activities that may cause a negative impact on society.”

Meanwhile, Senator Flexa Ribeiro suggested that casinos only be allowed in less developed regions and outside of the capital. However his proposed amendment was rejected.

The bill is a revised version of a bill initially put forward by Senator Ciro Nogueira in 2014 which 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.

The bill in its new form will now need to go before the Committee for approval a second time where it will in all likelihood be approved again next week. The commission has a special mandate and carries more weight which means that once approved it will go straight for analysis in the Chamber of Deputies.