Brazil Moves Closer to Legalizing Casinos and Bingo with Senate Approval

Brazil's Justice and Citizenship Commission has approved a bill to legalize casinos, bingo, and horseracing betting. The bill now moves to the Senate Plenary for further voting, marking a significant step towards regulating the gaming industry.

Brazil Moves Closer to Legalizing Casinos and Bingo with Senate Approval

Brazil's Justice and Citizenship Commission (CCJ) has taken a significant step towards legalizing various forms of gambling by approving PL 2,234/2022. This bill, under consideration since 2022, aims to legalize casinos, bingo, jogo de bicho, and betting on horseracing in Brazil. Approved by 14 votes to 12, the bill now advances to the Senate Plenary for further deliberation, having already passed the Chamber of Deputies.

A Great Opportunity for Brazil

During the CCJ meeting, Senator Irajá emphasized the potential benefits of regulating betting and gaming in Brazil. He highlighted that this move could generate jobs, income, and taxes, which would be reinvested in essential areas such as health, education, social services, and infrastructure.

Proposed Taxation and Regulation

The bill proposes two new types of taxes: the Gaming and Betting Inspection Fee (Tafija) and the Economic Intervention Contribution (Cide-Jogos). Tafija would be paid quarterly, totaling R$600,000 for casinos, R$300,000 for online gaming locations, and R$20,000 for bingo halls, Jogo de Bicho operators, and tourism companies. Cide-Jogos would tax 17% of gross revenue, with prizes over R$10,000 subject to a 20% income tax. As opposed to Sports betting taxation, it stands at 12%. 

Casino and Bingo Regulations

If passed, the bill would permit casinos in tourist centers or integrated leisure complexes, which include resorts and hotels with at least 100 rooms. Casinos could also operate on boats and ships with at least 50 rooms. Each state and the Federal District would be limited to one casino, except for São Paulo, Minas Gerais, Rio de Janeiro, Amazonas, and Pará. Casinos must show proof of a minimum paid-up share capital of R$100 million to operate.

Bingo would be allowed in card, electronic, and video formats, with one bingo house per municipality. Larger cities could have one bingo house for every 150,000 inhabitants. Bingo houses would be licensed for 25 years, subject to renewal, and must have a minimum paid-up share capital of R$10 million.

Horseracing and Additional Protections

The bill permits one legal racing entity per 700,000 inhabitants, except for Roraima, which can have a Jogo do Bicho operator. Horseracing bets would be managed by tourism entities accredited by the Ministry of Agriculture. These entities could also operate bingo and video bingo games on race grounds.

PL 2,234/2022 includes measures to protect bettors, such as the National Registry of Prohibited Persons (Renapro) for self-exclusion and a National Policy for the Protection of Players and Bettors to encourage honest gambling and discourage compulsive behavior. New crimes against gambling, such as tampering with games or advertising unlicensed games, could result in up to seven years in prison, with harsher penalties for involving minors or elderly victims.

Towards a Regulated Gaming Industry

Following President Luiz Inacio Lula da Silva's approval of Bill 3,626/2023 in December, which legalized sports betting and igaming, Brazil is on the fast track to regulated gaming industry. The Ministry of Finance is implementing sports betting and igaming, which is expected to be legal by the end of July. This latest bill's approval marks another crucial step towards Brazil's fully regulated and thriving gaming industry.