Legislation

Brazil – Brazilian court turns down appeal for poker licence

A court in Brazil has upheld the denial of a poker licence in São Paulo. The 13th Chamber of Public Law of the São Paulo Court of Justice unanimously backed a court decision after it had denied a poker room a business license. The club had aimed to promote tournaments, games and other activities, with an emphasis on poker which it considered a ‘sport of the mind’ as opposed to a game of chance.

According to the case file, the plaintiff requested authorisation to operate in the Municipality of Adamantina in São Paulo which in turn denied the request, as it argued that poker was a game of chance and therefore a criminal offence. The club, therefore, filed a lawsuit asking for the granting of the permit. This was consequently dismissed by the 1st Court of the District of Adamantina (SP) and then upheld by the São Paulo Court.

The appeal’s rapporteur, Judge Maria Isabel Caponero Cogan, dismissed the appeal, despite the appellant’s statements in defence of poker as a sport. “Indeed, there is no denying that the game of poker requires the intellectual dexterity of players, involving logical reasoning, mathematical calculations, statistical checks, emotional control and other skills,” wrote the magistrate. “On the other hand, it cannot be denied that the game also involves the element of ‘luck’ in terms of receiving the cards distributed to the participants and the positioning of the player on the gaming table. In that respect, the qualification of poker as a game of chance cannot be totally excluded.”

The rapporteur also argued that the club itself recognises that it would not be able to control the placing of bets by the public and how much access to the gaming tables would cost, nor the value of the prizes to winners. “Thus, even though the appellant has the noble purpose of encouraging a game that stimulates mental activities, the environment where these games would take place could foster activities contrary to positive legislation and adverse to customs and social peace, without control by the establishment.”

The decision could have wider implications if it is mirrored by other local governments. Poker is hugely popular in Brazil. There are currently around 7 to 8 million players signed up to poker clubs. In 2012, poker was officially recognised as a game of skill by the Brazilian Ministry of Sport. Poker is now listed on the Ministry website as a sport, noting that it requires a player to develop a broad mix of skills to succeed. The CBTH (Brazilian Conferederação Texas Hold’em) is the governing and regulatory body. Poker can be operated by private entities. These activities do not require any specific licence.