Brazil Senate Committee Approves Landmark Casino and Gaming Reform

Brazilian Senate Committee Approves Landmark Reform for Land-Based Gaming

Picture Brazil, a nation renowned for its vibrant culture and tourism, now embracing a regulated casino industry.

The Senate’s approval of Bill No. 2,234/2022 signifies a major shift in Brazil’s approach to land-based gaming.

Discover how this reform promises economic growth, job creation, and a revitalized tourism sector in Brazil.

Explore the comprehensive details of the bill and its potential impact on Brazil’s gaming landscape.

Brazilian Senate Committee Approves Landmark Reform for Land-Based Gaming

In a significant step towards reshaping the gaming landscape, the Brazilian Senate Constitution and Justice Committee (CCJ) has approved Bill No. 2,234/2022, aimed at reforming the legislation for land-based casinos, horseracing betting, bingo, and instant win jogo do bicho games. The committee voted 14-12 in favor, and the bill now advances to the State Plenary for further revision.

A Major Shift in Gaming Legislation

The approval of this bill marks a pivotal moment in Brazil’s history. Land-based gambling, which has been a contentious issue for decades, is now set for a comprehensive overhaul. Unlike sports betting, which saw its regulatory framework established after President Lula da Silva signed off on the legislation in December, land-based gambling reforms had stalled until recently. The resurrection of this bill by Senator Irajá Abreu (PSD-TO) signifies renewed legislative momentum.

Senator Abreu emphasized the economic potential of the reform, stating that it could generate “about 1.5 million direct and indirect jobs in the country.” He argued that Brazil could no longer ignore the global trend towards regulated gambling, which could significantly benefit the nation’s economy.

Key Provisions of the Bill

The bill seeks to reverse President Gaspar Dutra’s 1946 Decree Law, which banned casinos from operating in municipalities and districts. If passed, the legislation will allow land-based casinos in tourist locations or “integrated leisure complexes,” with a limit of one casino per state and the Federal District. However, larger states such as Rio de Janeiro, Minas Gerais, Paraná, and Amazonas would be allowed two casinos each, while São Paulo could have up to three.

Bingo would also see significant changes. The bill permits one designated establishment per municipality, with additional venues allowed based on population size. Licenses for bingo operations would be valid for 25 years, requiring a minimum capital of R$10 million. Similarly, jogo do bicho operators would be limited to one per 700,000 inhabitants in each state and the Federal District.

Modernizing Horseracing

The bill proposes significant modernization efforts for horseracing. These reforms would be overseen by the Ministry of Agriculture, aiming to enhance the infrastructure and operational standards of turf courses across the country. This modernization is expected to attract more participants and spectators, boosting the overall popularity of the sport.

Protective Measures and Regulations

The legislation includes several protective measures to ensure responsible gambling. Betting would be restricted to individuals with full civil capacity, excluding those declared insolvent, over-indebted, or involved in debt restructuring within the past two years. A National Register of Prohibited Persons would be established, requiring operators to verify customers against this list.

Additionally, the bill introduces a National Policy for the Protection of Gamblers and Bettors, which outlines guidelines for responsible gambling practices. Operators would be mandated to allocate at least 80% of casino and bingo revenue to prizes, with jogo do bicho required to allocate 40%. Furthermore, operators would be prohibited from offering loans or promotions, ensuring a focus on fair play.

Taxation and Fees

The financial aspects of the bill include the introduction of a Gaming and Betting Inspection Fee and the Contribution of Intervention in the Economic Domain. These taxes would be administered by the states, ensuring that the economic benefits of legalized gambling are distributed fairly across the country. Prizes exceeding R$10,000 would be subject to a 20% withholding tax, providing additional revenue for public services and infrastructure.

Potential Revisions and Opposition

Despite its progress, the bill is expected to face revisions. The Senate Evangelical Caucus has historically opposed gambling reforms and is likely to push for amendments. One such amendment aims to exclude gambling in districts with high crime rates, addressing concerns about the social impact of casinos and betting establishments.

Economic and Social Impact

The potential economic impact of this reform is substantial. By legalizing and regulating land-based gambling, Brazil stands to gain significant revenue, which can be reinvested into public services and infrastructure. The creation of approximately 1.5 million jobs, both direct and indirect, would provide a significant boost to the economy, particularly in regions reliant on tourism.

Moreover, the modernization of horseracing and the introduction of regulated bingo and jogo do bicho operations are expected to enhance the entertainment options available to Brazilians and tourists alike. This diversification of attractions could lead to increased tourism, further bolstering the economy.

A Global Perspective

Brazil is not alone in its efforts to reform gambling legislation. Countries around the world have recognized the benefits of regulated gambling industries, from job creation and revenue generation to the promotion of responsible gambling practices. By aligning with global trends, Brazil is positioning itself as a forward-thinking nation ready to embrace the economic and social benefits of a well-regulated gambling industry.

Conclusion

The approval of Bill No. 2,234/2022 by the Brazilian Senate Constitution and Justice Committee marks a significant milestone in the country’s journey towards a regulated gambling industry. With comprehensive reforms aimed at legalizing and regulating land-based casinos, bingo, horseracing, and jogo do bicho, Brazil is poised to unlock substantial economic benefits and create millions of jobs.

While the bill is likely to undergo revisions and face opposition, its core provisions highlight the potential for a transformative impact on Brazil’s economy and society. As the bill advances to the State Plenary, the nation watches closely, anticipating a new era of regulated and responsible gambling that aligns with global standards and promotes sustainable growth.