DOM 5 DE ENERO DE 2025 - 06:38hs.
TWO PROJECTS IN CONGRESS

Brazilian gaming legalization: current situation

Local newspaper O Globo published last weekend a summary on the current situation of the possible legalization of gaming in Brazil. The House of Representatives and the Senate examine two separate bills that could release gambling in the country after seventy years. At the beginning of the 21st century, bingos were allowed to function. Permission lasted only three years.

How many projects are in progress to release gaming activity?
There are two different bills under discussion in Congress.

One of them is the Regulatory Framework of the Gaming in Brazil, which is in the Chamber of Deputies. It evaluates 14 proposals on legalization of casinos, bingos, slot machines, local popular "jogo do bicho” and online gaming. All proposals were brought together in Bill 442/91, presented 26 years ago.

Casinos: They would work within leisure complexes built for the purpose of gaming. The same economic group could not have more than one establishment in the same state and would be limited to five casinos in Brazil. Accreditation would be worth 30 years.

Bingos: it would be the municipality's responsibility to license and supervise bingos, whose concession term would be 20 years. City with more than 50 thousand inhabitants could have up to 500 videobingo machines; With less than 50 thousand, the limit is 300 machines. There are still restrictions on the proximity between bingos and casinos.

Jogo do bicho: Licensing and enforcement would be in charge of the states. The term of accreditation would be 20 years.

The other bill is in the Senate. Introduced last year, bill 186/2016 intends to legalize the operation of casinos, bingos, and "jogo do bicho”. The proposal is divided into three sections: casinos, bingos and "jogo do bicho”.

Casinos: They would work within leisure complexes, with hotel accommodations, restaurants, bars, shopping centers and venues for events. A maximum of 35 casinos would be allowed in the country, only three per state. Accreditation for each casino would be worth 30 years.

Bingos: They could not have other games of chance in the same establishment. A bingo would be allowed for every 150,000 inhabitants of a city. Municipalities with populations under 150 thousand could only have one bingo.

"Jogo do bicho”: It would be regulated by local city halls. The activity would cease to be criminal contravention.

What does the government think?
Officially, President Michel Temer is against regulation and should not interfere in the negotiations of projects that are in Congress. However, according to sources heard by GLOBO, some ministers work the opposite way. Seduced by the possibility of generating incomes through gambling taxes, the economic team has prepared a provisional measure to allow sports betting if Congress delayes approving the projects. Even in terms of intentions, this year's budget already counts with legalization, according to the Ministry of Planning.

How much can the games yield to the government?
Officially, this year's Budget includes only the sale of 49% of Lotex (the lotteries of Caixa), which should yield around US$ 965 million. However, internally, the Ministry of Finance projects to raise US$ 5.5 billion in three years. The account of the technicians is very conservative. Only in 2017, the forecast is something around US$ 2.25 billion without the operation of Lotex. Other technicians, more optimistic, say that the collection can reach US$ 9.65 billion per year. For the "Arrecada Brasil" movement, which advocates legalization, the expectation is that if the gaming is released, the government will raise US$ 11.9 billion per year.

How much illegal gambling does move?
The main pro-gaming NGOs estimate that, today, the illegal gambling market circulates almost US$ 6.45 billion, much more than the official games in the country, around US$ 3.85 billion. The estimate is that only the "jogo do bicho”, the most popular in the country, move US$ 3.85 billion in illegality, distributed in 350 thousand points of game across the country, against only 13 thousand lottery points.

Is there another proposal?
Tourism Minister, Marx Beltrão, defends the release only for large casinos with integrated resorts. The money raised from them should be linked to health, education and social security. The idea is that Brazil could open six concessions immediately in the states of Rio and São Paulo and another four in the South, Midwest, North and Northeast regions. The assessment is that there is room to house up to 20 ventures like this. The example is Singapore, which gave only one concession - a huge resort with casino, shopping, restaurants, theater, convention center and even amusement park. The number of tourists in the country jumped from 9.7 million per year to 17 million. Tourism revenue increased from US$ 12.8 billion to US$ 23.5 billion, Beltrão said.

Online betting is allowed?
Betting websites are not regulated in Brazil. Despite this, sites, especially those involving sports betting, operate freely. It is estimated that the online gaming moves, today, around US$ million per year in the country. Several sites already produce content in Portuguese. The estimate is that there are about 700 sites, 10% of them in Portuguese and betting for games of Brazilian championships. However, the main betting sites used by Brazilians are based in Costa Rica, Gibraltar, Isle of Man and other tax havens. Sports marketing experts say the simple regulation of online gambling does not mean that the sites would have headquarters in Brazil. The reason is simple: payment of taxes.

Has gambling been allowed in Brazil?
Gambling has been banned since 1946, when then-President Eurico Gaspar Dutra gave way to women's pressure, known as Dona Santinha, and banned all forms of gambling on national territory. In 2001, bingos were allowed to operate. In that year, the federal government's revenue was only US$ 19.6 million. Permission lasted until 2004.

Source: GMB / O Globo