Brazil's first Gambling Law draft legalizes the operation of casinos, bingo halls and “jogo do bicho”

Last Wednesday, Deputy Felipe Carreras's project, which advances on the revision of PL 442/91, was announced in Brazil.

The text presents some inaccuracies in relation to the modalities to be approved, and the form of exploitation of games of chance, but it authorizes the operation of casinos, bingo halls, sports betting, online gambling, and skill games, in addition to legalizing the Jogo do bicho.

The project also proposes the creation of the Sinaj — National Gaming and Betting System, as a federal regulatory body for all modalities.

The Working Group that reviews the text made the initial draft available on Wednesday in order to debate over the structure, organization, directives, and the main rules of the gambling and betting regulatory framework.

The draft is subject to modifications, and its purpose is to provide an initial basis for discussion among parliamentarians, as it seeks to view the Final Report of the Working Group, which will be presented to the President of the Chamber of Deputies, Arthur Lira.

The project does not define the model of casinos that will be implemented in Brazil, nor if they will be allowed only in integrated tourist complexes, but from what is initially understood, “urban” casinos would be enabled, since the only paragraph of art. 8 states the following:

"The practice and exploitation of games and wagers may be carried out in physical or virtual establishments, after obtaining by the interested party, the acts of the consent of the Public Authority, in the terms of this law."

The turf entities, according to the draft, will be able to exploit their own bets and also casino and bingo games, allocating the proceeds of the collection exclusively for the benefit of their corporate purpose. In addition, the document defines the creation of the National Gaming and Betting System - Sinaj, made up of a federal regulatory body, gaming, and betting operators, entities, and agents, as well as auditing companies and self-regulatory entities of the market.

In addition to the Sinaj, the creation of the Renajogo - National Registry of Players and Gamblers is proposed, to guarantee the control of the activity from the player's point of view.

According to the proposal, no player will be able to participate in games or bets without first registering. The database will be used to control and record access to bets and will allow following the behavior of the players to guarantee their protection and the prevention of compulsive gambling.

Consumer protection is also mentioned in the document and the creation of a National Policy for the Protection of Bettors and Players is anticipated. The rules for this policy are yet to be developed.

The document also includes the creation of Cide-Games (Contributions for Intervention in the Economic Sphere), a tax destined to fund actions in the field of tourism and sport, and whose objective is the fight against compulsive gambling. The percentages are not yet indicated in Felipe Carreras' review.

To operate in Brazil, companies must have headquarters and administration in the country and will be subject to the rules defined by the federal regulatory and supervisory body, which will establish the criteria for granting the operating license.

The rules for each type of game have not yet been established and are, according to the draft, in preparation or revision, as well as the license fees, taxes, and the division of resources between the Union, the States, and the Federal District.

According to federal deputy Bacelar, the draft presented by Carreras meets the expectations of the Working Group and represents the national interest.

Another of the points highlighted by Bacelar is that the new text aims to prevent and fight the use of games and bets for the practice of crimes, especially tax evasion, money laundering, and the financing of terrorism. "The Working Group has until December 9 to complete its work. We hope that by then the new text is complete and rounded. We are on the right path and we have good expectations," said Bacelar.

SEE THE ORIGINAL FULL TEXT OF THE PROPOSAL IN PORTUGUESE HERE