Brazil’s Senate committee passes land based expansion bill
The Constitution and Justice Committee approved, by 14 favourable votes and 12 against, PL 2234/2022. The proposal now moves on to the Senate Plenary for analysis. The rapporteur, Senator Irajá argued that it was an opportunity for income and jobs and a way to bring activities operating on the fringes of the law into legality.
“We will collect from these currently illegal and clandestine games, which are operating in the shadows – where we currently collect absolutely nothing – around R $22 billion annually. Of course, this revenue will be divided among the states, municipalities, and the Union,” he said according to the Senate Radio news agency.
Senator Carlos Portinho however, pointed out that the sports betting law, had not yet translated into benefits because the government is taking too long to regulate the legislation.
“Six months later, what’s the result? Everything remains exactly as before – the government has not regulated a single line. Therefore, bets continue as before, not paying taxes or licensing fees. So, all the government’s discourse that it was important to regulate because this would result in revenues was not true, is not true.”
According to the text of the bill, casinos may be installed in resorts as part of an integrated leisure complex that must contain at least 100 high-end hotel rooms, meeting and event venues, restaurants, bars and shopping centres. In order to determine where casinos can be opened, the Executive Branch must consider the existence of the tourism industry and the economic and social potential of the region. According to the proposal, gaming houses will also be able to operate on sea and river vessels. Each economic group may hold only one licence per state, and licensing will be carried via a public bidding process which be decided on the technical and financial bids put forward by potential operators.
The law also permits municipalities and the Federal District to licence bingo halls. Bingo halls will also be allowed in stadiums with a capacity of over 15,000 spectators. Bingo halls must be located in places with a minimum area of 1,500 square meters, where up to 400 video bingo machines can also be located, but slot machines will be prohibited. Only one bingo hall will be accredited for every 150,000 inhabitants in the municipality where the establishment will operate, in accordance with the regulations. In municipalities with less than 150,000 inhabitants, only one bingo hall will be accredited. Licenses will be granted for 25-years and will be renewable for an equal period. In addition, the bill defines rules for electronic and card bingo.
For the legalization of the street lottery “jogo de bicho” accreditation will be for a period of 25 years, renewable for an equal period if the requirements are met. There may be, at most, one operator of this game for every 700 thousand inhabitants of the state or Federal District. In those with less than 700 thousand inhabitants, there can only be one accredited licence holder for the animal game.
Meanwhile horse racing may be operated by tourism entities accredited by the Ministry of Agriculture, which may also be accredited to operate, at the same time, bingo and video bingo games.
Draft Law Projeto de Lei (PL) nº 442/91 passed the Special Committee on the Regulatory Framework for Games in 2016 and was the most comprehensive gambling bill under consideration in the Chamber of Deputies. It replaced the texts of all other related gambling laws which had been put before the house over several years. In all the bill replaces and is in part an amalgamation of as many as twenty other gambling related projects. When it finally passed the Chamber of Deputies and went to the senate it became PL 2234/2022.
