A bill introduced 31 years ago to legalize the jogo do bicho in the country is the federal government's bet to leverage revenue and divide President Jair Bolsonaro's base. Priority of the president of the Chamber of Deputies, Arthur Lira (PP-AL), in the resumption of voting in February, the initiative can inject R$ 20 billion (US 3.8bln) a year into the federal coffers, but faces resistance from the conservative benches. Most of the 31 gaucho (from Rio Grande do Sul) deputies are cautious and await the final text to position themselves.
The original bill, filed by the then deputy Renato Vianna (MDB-SC) in March 1991, was limited to revoking all legal provisions that prohibited the jogo do bicho in the country. Now, the discussion has gained billionaire contours, with the inclusion of the release of bingos, casinos and several other types of betting modalities.
The main argument in favor of legalization is the creation of jobs, the stimulation of tourism and the increase in tax collection. Rapporteur of the proposal, Deputy Felipe Carreras (PSB-CE) is still working on the wording of the substitute that will be appreciated in plenary. He declined to comment on the scope of the releases he will propose. “The report is not ready and there is no date yet for the vote”, says Carreras.
In 2016, the date of the last movement of the original project, a report was even approved by a special commission created to discuss the topic. Carreras should take advantage of most of the proposals discussed at the time. The main initiative suggested at the time was the creation of a federal agency for the supervision and regulation of gaming. The idea should be maintained, with the inclusion of a national register of gamblers.
The 2016 proposal also provided for a list of crimes related to the system, such as fraud in results, clandestine betting and punishment for those who allow gaming to be played under the age of 18. Among the punishments discussed at the time, the opinion included fines ranging from R$10,000 to R$5 million and sentences of up to 16 years in prison for anyone who circumvented the system and involved minors.
In taxation, the idea now is to establish a rate of 20% on gross revenue from games in casinos and online, and 10% on other accredited physical establishments. Winners would also pay 30% income tax on the net value of each prize.
In the division of revenues, the federal government would allocate 25% to the States and 50% to municipalities, in addition to using part of the collection in policies to encourage tourism, sports, animal protection, culture and public safety, among other areas, in addition to contemplating actions to combat compulsion to play.
There is no guarantee that all these measures are in the text that will be voted on. In recent months, interest groups have intensified lobbying Congress to get their demands addressed in the final report. Behind the scenes, there is information that large international groups are keeping an eye on the Brazilian market, especially in view of the possibility of building resorts with casinos in renowned tourist spots. The pressure bothers even those who, by ideological principle, sympathize with the legalization of gaming.
“They want to make some restrictions, such as only allowing bets in resorts or only releasing companies with social capital of so many millions of reais. If these are the changes, it is not releasing the activity, but concentrating on the hands of a few and leaving the majority illegally. I think this is an important issue, but we cannot leave the state monopoly for a private oligopoly,” comments deputy Marcel van Hattem (Novo-RS).
The pressure for approval of the matter began last year. Still in December, Lira narrowly missed putting the topic to a vote. In the last session of the year, he put on the agenda an urgent request that ended up being approved by 293 votes, with 138 against and 11 abstentions. Lira's intention was, in the sequence, to vote on the merits of the text, but there was resistance from part of the opposition and in the evangelical and Catholic benches.
In the end, Lira made an agreement whereby the Conservatives did not obstruct the urgency vote and he guided a project of interest to the category, exempting properties rented by churches from IPTU. PT leader at the time, Bohn Gass (RS) also negotiated with the president of the House.
“He wanted to close the discussion and vote. But without discussion it would no longer be possible to present amendments. So we struck a deal that no one else would sign up to speak, but the discussion continues. The PT, for example, voted against urgency, but still does not have a closed position on the merits,” he says.
In the Rio Grande do Sul bench, most have not yet established a position on the subject. Of the 31 deputies, 10 said they were waiting for the report to be presented to define the vote. There are 6 against and 6 in favor – another 9 did not respond or were not located (see list). In the past, of the 29 that were in plenary last December 16, 20 voted in favor of urgency and eight against, with one abstention.
Pressured by conservative caucuses and the evangelical electorate, President Jair Bolsonaro said that he intends to veto the matter, if approved in Congress. Behind the scenes, however, he has already freed the allies to override their own veto. Economy Minister Paulo Guedes and at least two of the president's sons, Flávio and Eduardo Bolsonaro, are enthusiastic about the initiative.
“We are going to increase revenue, end money laundering and fight organized crime. We will have resorts, millionaire investments in tourism. Those who are against it live in the Middle Ages, and if the president vetoes it, we overturn the veto,” says deputy Bibo Nunes (PSL-RS).
“In the days of bingo, I saw many people lose their homes and jobs because of gambling. I understand that now comes a speech that the government is going to raise money, it needs money and it is going to generate jobs, all right. But I vote no. I don't even know what is written, how the project will be, but I think the country has other priorities,” statess deputy Heitor Schuch (PSB-RS).
The position of Rio do Grande do Sul’s bench:
Deputy Urgency Merit
Afonso Hamm (PP) in favor undecided *
Afonso Motta (PDT) in favor not found
Alceu Moreira (MDB) in favor in favor
Bibo Nunes (PSL) in favor in favor
Bohn Gass (PT) against against
Carlos Gomes (REP) against against
Covatti Filho (PP) in favor undecided
Daniel Trzeciak (PSDB) in favor undecided
Fernanda Melchionna (PSOL) in favor undecided
Giovani Cherini (PL) in favor in favor
Giovani Feltes (MDB) against against
Heitor Schuch (PSB) against against
Henrique Fontana (PT) against against
Jerônimo Goergen (PP) in favor in favor
Liziane Bayer (PSB) against against
Lucas Redecker (PSDB) in favor in favor
Marcel van Hattem (Novo) in favor undecided
Marcelo Brum (PSL) against not found
Marcelo Moraes (PTB) in favor did not answer
Márcio Biolchi (MDB) in favor not found
Marcon (PT) absent undecided
Maria do Rosário (PT) absent undecided
Marlon Santos (PDT) in favor not found
Maurício Dziedricki (PTB) in favor undecided
Nereu Crispim (PSL) in favor in favor
Osmar Terra (MDB) against did not answer
Paulo Calefi (PSD) in favor not found
Paulo Pimenta (PT) abstention undecided
Pedro Westphalen (PP) in favor did not answer
Pompeo de Mattos (PDT) in favor did not answer
Sanderson (PSL) in favor undecided
*The undecided are waiting for internal discussion in the benches or the presentation of the final text to firm up their position
ARGUMENTS
Who is in favor
*Tax collection in excess of R 20 billion (US$ 3.8bln) per year
*Generation of 30,000 jobs in casinos and 450,000 jobs with the jogo do bicho
*Attracting international investments
* Promotion of tourism
Who is against
*Creates money laundering mechanisms
*Attracts international organized crime groups
* Stimulates playfulness (addiction to gambling)
*Fosters prostitution networks
Source: Jornal digital GZH
