Brazil continues to reform its gambling framework amid efforts to expand the industry. Pro-gambling activists just marked a major victory as bill 2,234/2022 was approved by the Senate’s Constitution and Justice Committee.
With 14 votes in favor of the measure and 12 votes against, the measure could usher in land-based casino gaming and instant win games in the LATAM country. Under the bill, the 1946 Decree Law of President Gaspar Dutra, which banned casinos, could be revoked, marking a new era for Brazilian gaming.
The new bill will effectively amend Brazil law to allow the establishment of land-based casino in tourist locations or integrated resorts. As per the bill, the number of casinos will be limited to one casino per state.
As bigger cities, Amazonas, Minas Gerais, Paraná and Rio de Janeiro will be allowed to host two casinos instead. São Paulo, on the other hand, will be allowed three.
In addition to permitting land-based gaming, the legislative measure would ease up the rules on bingo gaming, allowing municipalities to host bingo venues. Candidate operators must have a capital of at least $1.8 million. Licenses will be valid for 25 years. The new bill also envisions similar regulations for the operation of jogo do bicho games.
The framework requires casino and bingo operators to channel at least 80% of their revenue to prizes. Jogo do bicho operators, on the other hand, must ensure to reinvest at least 40% of their revenue in prizes.
Prizes of over $1,800 will incur a 20% tax. Speaking of taxes, Brazil plans to reinvest gambling proceeds into the tourism, culture and sports sectors.
Brazil Continues to Reform Gambling Senator Irajá Abreu was among the key proponents of the measure, arguing that it is impossible for the whole world to be wrong and only Brazil to be right. According to him, this means that Brazil should regulate gambling properly and allow Brazilians to enjoy it in a safe way.
Abreu also argued that gambling could also generate a myriad of direct and indirect jobs, and generate approximately $18.4 billion in revenue.
The bill is part of ongoing efforts to expand Brazil’s gambling industry and allow the country to capitalize on the demand for games of chance. Proponents have called for the creation of a framework that would provide adults with more options to wager legally.
However, the new framework would prevent gambling operators’ staff and leadership from gambling. Other people who would be unable to wager include insolvent and over-indebted persons. To that end, the bill promotes the creation of a National Register of Prohibited Persons (Renapro).
Speaking of barring individuals from gambling, the ongoing project would also create a customer protection scheme.
While proponents have been going full steam ahead with the reforms, not everyone is on board. The Evangelical Caucus of the Senate, for example, challenged the reforms, saying that it should not become a reality until its advocates can guarantee that they will prioritize player safety.
The Caucus would therefore seek amendments, such as exempting certain crime-heavy areas from gambling.
