We here at Game2Bet have the largest selection of sportsbook and casino. This means we always keep our eyes open for any interesting news from the sector, and we just got some interesting news from Brazil. Senators on the Constitution and Justice Committee approved a bill that legalizes gambling in Brazil. This bill, which includes casinos, bingos, and Jogo do bicho, will go to the full Senate for review next.
The bill ends the ban on gambling in the South American country, which has existed since 1946. It had been in the Senate Constitution and Justice Committee for over a year. The bill’s rapporteur said that regularizing games of chance helps to create jobs and increase tax collection. Below we will discuss the regulations for each modality and what may come to be in the future. Let’s talk about it.
Gambling in Brazil: Ending an almost 80-year ban
The bill puts an end to a 1946 law banning the operation of games of chance throughout the country. It also repeals parts of the Criminal Contraventions Law, which establishes punishments for the practice. The operation of games of chance, however, will have to follow a series of criteria. For example, minimum amounts of company capital and proof of the lawful origin of funds will be required. Only companies based in Brazil can operate gambling, and they can do so in locations that have received prior authorization.
According to the bill, the Ministry of Finance will be responsible for defining the licensing, inspection, and authorization processes. The government will also be able to create a regulatory agency. Under the proposal, only those over 18 can play. There will be a ban, for example, on people with compulsive gambling or judicially interdicted.
What will be legalized?
The proposal approved authorizes the practice and operation of the following in Brazil:
- Casinos
- Bingo
- Video bingo games
- Online gambling and casino
- Jogo do bicho
- Horse race betting
Standards for each type of game
Each type of game will have previously established criteria for operation:
Horse racing
The company offering the service will need to apply, for example, for prior accreditation from the Ministry of Agriculture for horse racing and request, within a year, authorization to operate betting from the Ministry of Finance. If the betting venue also wishes to offer bingo, it must also prove the requirements for this type of game.
Casinos
Public auctions will accredit it, and it may operate only in integrated leisure complexes or on boats. The version approved by the House of Representatives stipulated that casinos should be "built specifically for this purpose". However, they later changed the text to specify places "specifically intended for this purpose". The rapporteur believes that the change will "guarantee greater participation by the hotel sector" in the provision of casinos.
Bingo
The offer can only take place at permanent addresses - the so-called bingo halls. Operating licenses will be valid for 25 years.
Jogo do bicho
It will also have a 25-year license, granted only to companies that can prove they have sufficient resources to meet their obligations. Furthermore, a digital platform will contain all betting records. Specifically in this practice, it will not be necessary to identify bettors who receive prizes up to the income tax exemption limit.
Who can play
The bill establishes that only those of legal age will be able to play. Minors will also not be able to access addresses accredited to offer the games, and they will not be able to have gaming machines installed abroad. According to the bill, gamblers will have up to 90 days to claim their winnings. The text establishes restrictions for betting on any of the following modalities:
- Legal entities;
- Individuals with a gambling compulsion who request inclusion in the National Prohibited Persons Register (Renapro);
- Those judicially interdicted, at the request of family members, for gambling addiction;
- People considered insolvent - that is, those who have debts greater than their assets;
- Individuals linked to gaming companies;
- Public agents linked to gaming supervisory bodies;
The bill also provides for the creation of a national policy to protect bettors, with the obligation for bookmakers to maintain customer service for bettors and mechanisms to prevent gambling addiction. In addition, the text prohibits betting companies from offering, granting, or facilitating loans to gamblers. Moreover, it allows companies accredited by the Ministry of Finance to collect betting debts.
Gambling in Brazil: Only registered companies
To begin with, the text establishes that only companies registered, based, and managed in Brazil can offer games of chance. The offer will depend on the granting of a license by the Ministry of Finance. According to the rules set out in the bill, the company’s bylaws must establish that the main activity of the CNPJ will be the exploitation of these practices. However, companies may register activities such as food and beverage trade, and artistic and cultural activities as secondary activities. To be entitled to an operating license, besides other requirements, the company will need to prove the lawful origin of funds and a minimum capital.
- For bingo: $ 1.84 million
- Casinos: $ 18.42 million
- Jogo do Bicho: $1.84 million
The ministry will define the criteria for the licenses, which may be granted permanently or for a fixed term. Also, the ministry may authorize operations for specific or previously defined locations, known as gaming zones. These authorizations will be non-negotiable and non-transferable. Furthermore, only physical or virtual establishments authorized by the federal government can offer games.
Brazil could become the world's third-largest gambling market
Brazil could become the world’s third-largest gambling market. The forecast comes from the Federation of Hotels, Restaurants and Bars of the State of São Paulo (Fhoresp), which estimates investments of more than R$ 382 billion in this segment. Even before the approval of the bill by the Senate’s CCJ, 56 foreign companies visited Brazil to evaluate sites for future operations. Clearly, the bill’s signing into law can increase this number.
The bill provides for the installation of three types of casino: integrated into resorts, a model inspired by those already existing in Las Vegas (USA) and Singapore; smaller tourist casinos, similar to those in Punta del Este, Uruguay; and bingos in cities with more than 150,000 inhabitants. Each state will have the right to license a specific number of casino establishments integrated into resorts, based on its population. São Paulo, for example, will be able to have up to three casinos integrated into resorts, while Rio de Janeiro and Minas Gerais will have two each since each state has more than 20 million inhabitants. The other federative units will be able to have one establishment in the sector.
The future of gambling in Brazil
With Brazil on the brink of legalizing a wide array of wagering activities, from casinos and bingos to the traditional Jogo do Bicho, the landscape of gambling in Brazil is set to transform dramatically. This legislative change is poised to boost the economy and create numerous job opportunities while ensuring a regulated and fair environment. At Game2bet, we are excited about these possibilities and committed to bringing you the best in gaming experiences. Join us today — open an account at Game2Bet and stay updated with the latest developments and opportunities in the world of gambling!
