On June 19, 2022, Brazil took a significant step towards the legalization of casinos and bingo with the approval of PL 2,234/2022 by the Committee on Constitution and Justice (CCJ). The bill, endorsed by a narrow margin of 14 votes to 12, now moves to the Senate Plenary for a decisive vote. This legislative effort has been the subject of intense deliberation since its introduction in 2022 and has already received the green light from Brazil’s Chamber of Deputies.
Senator Irajá, a key advocate for the bill during the CCJ meeting, highlighted the potential benefits of regulating the betting and gaming industry in Brazil. He confidently asserted that this move would be a “great opportunity” for the country, promising numerous advantages for the Brazilian population.
“We can no longer lose this great opportunity that other competing countries have already understood,” said Senator Irajá. “It is seen to generate jobs, income, and taxes, which will obviously be reversed into benefits for the Brazilian people in the most essential areas, such as health, education, social and infrastructure.”
PL 2,234/2022 sets forth detailed regulations for various aspects of the gaming industry, including casinos, betting machines, bingo, animal racing, particularly horseracing, and associated taxation. The proposal introduces two new forms of tax: the Gaming and Betting Inspection Fee (Tafija) and the Economic Intervention Contribution on the marketing of games and betting (Cide-Jogos).
Specifics of the proposed taxation framework are as follows: Tafija would be due quarterly, with casinos mandated to pay an amount totaling R$600,000. Online gaming locations would face a fee of R$300,000, while bingo halls, Jogo de Bicho operators, and tourism companies would owe R$20,000. Additionally, the Cide-Jogos tax rate would be set at 17% of gross revenue, and income tax of 20% would apply to prizes exceeding R$10,000.
Should the bill be ratified into law, it stipulates that casinos could only operate within tourist centers or integrated leisure complexes, specifically those designated as resorts and hotels with bars, meeting spaces, and at least 100 rooms. This stipulation, introduced by Senator Ângelo Coronel, ensures that casinos would be exclusive to upscale venues designed to serve as integrated resorts.
Moreover, the legislation permits casinos on boats and ships with a minimum of 50 rooms, contingent upon compliance with river length parameters. The number of casinos would be strictly limited to one per state and the Federal District, with certain exceptions – São Paulo could host up to three casinos, while Minas Gerais, Rio de Janeiro, Amazonas, and Pará could each have up to two.
To operate a casino, each establishment would need to demonstrate a minimum paid-up share capital of R$100 million (approximately £14.5 million/€17.
.1 million/US$18.4 million). Bingo operations would also be legalized in both card, electronic, and video formats, subject to stringent regulatory frameworks.
Under the bill’s provisions, a bingo house could open in each municipality, with larger cities allowed one for every 150,000 inhabitants. Licenses for bingo houses would have a validity of 25 years, renewable upon expiration. These operators must also display proof of a minimum paid-up share capital of R$10 million as part of the licensing requirements.
Regarding animal racing, the bill decrees that one legally operated racing entity is allowed for every 700,000 inhabitants, with Roraima being an exception due to its population below this threshold based on the 2022 Census. Instead, Roraima could host a Jogo de Bicho operator.
Bets on horseracing would be managed by Brazilian tourism entities accredited by the Ministry of Agriculture, with these entities also permitted to offer bingo and video bingo games on the same grounds as the racetracks.
PL 2,234/2022 includes provisions for a self-exclusion program called the National Registry of Prohibited Persons (Renapro), requiring venues to check if customers are registered to prevent their entry.
Additionally, the bill proposes the National Policy for the Protection of Players and Bettors, focusing on maintaining integrity in gambling and discouraging compulsive gambling behavior. In line with these measures, the bill introduces new criminal offenses related to gambling.
Engaging in or promoting unlicensed games could lead to imprisonment for up to four years, with penalties doubling if minors are involved. Manipulating games or results could incur a seven-year sentence, again doubling if the victim is either elderly, a minor, or registered with Renapro.
Since President Luiz Inacio Lula da Silva’s approval of Bill 3,626/2023 in December, which legalized sports betting and igaming, Brazil has been fast-tracking the establishment of a regulated gaming industry. The Ministry of Finance has outlined the steps for implementing these measures, predicting the legalization of sports betting and igaming by the end of July.
Currently, Brazil is in stage three of this process, where the Regulatory Policy of the Prizes and Betting Secretariat (SPA) publishes the technical and security requirements for igaming operators.
