Brazilian senators seek consensus on controversial casino and bingo bill

The House bill authorising the operation of casinos and bingos in Brazil (PL 2.234/2022) was approved by the Constitution and Justice Committee (CCJ) on 19 June. It then received 11 amendments, which need the committee's opinion before being voted on by the full Senate. The text also legalises gambling and allows betting on horse races.

The issue is controversial. Advocates of approval argue that in countries where casinos have been regulated, there have been social and economic benefits. According to the rapporteur, Senator Irajá (PSD-TO), approval of the text could result in investments of R$100 billion, generating around 1.5 million direct and indirect jobs. The potential revenue per year, according to the senator, could reach R$22 billion, divided between the states, municipalities and the Union.

Parliamentarians opposed to the text warn of the risk of encouraging ludopathy (addiction to games) and crimes such as money laundering, trafficking and prostitution. The vote on the text was postponed several times in committee due to a lack of consensus.

New Taxes 
The bill creates specific rules for different types of gambling and imposes limits on the commercial establishments that can offer casinos, bingos and games of chance. For example, there will be a limit of one casino in each state and the Federal District, with the exception of São Paulo, which can have up to three casinos, and Minas Gerais, Rio de Janeiro, Amazonas and Pará, which can have up to two each, due to the size of their population or territory.

Bingo parlours are limited to one per municipality, but larger cities can have one establishment for every 150,000 inhabitants. In each state and in the Federal District, one legal entity may operate a game of bicho for every 700,000 inhabitants. Betting on horse races, on the other hand, may be operated by horse racing organisations accredited by the Ministry of Agriculture.

The regulations include the creation of two new taxes: the Gaming and Betting Inspection Fee (Tafija) and the Contribution for Intervention in the Economic Domain levied on the commercialisation of gaming and betting (Cide-Jogos). Of the amount collected, 16 per cent will go to the State Participation Fund, 16 per cent to the Municipal Participation Fund (FPM), 12 per cent to the Brazilian Agency for International Tourism Promotion (Embratur), 10 per cent to actions in the area of sport and 10 per cent to the National Culture Fund. The rest will be used in various areas, including actions to prevent gambling addiction.

Senado Agency