The legalization of the betting industry will be one of the agendas that the government of Luiz Inácio Lula da Silva will have to deal with in the first months of office, as shown in the report published in last week edition of Veja. There is a willingness of the new management to face an issue that has always had resistance from the conservative electorate, especially the religious one. The possibility of moving forward with the regulation was also contemplated in the report of the tourism group of the transition team.
The market modalities, however, are still in different stages of regularization in the face of Brazilian legislation. Gambling, as the industry is called, has seven main strands: traditional lottery, turf betting, fixed-quota betting (when the bettor knows how much he will win if he gets it right), the jogo do bicho, bingo, casinos and online betting.
Of these, the first two ones are legalized and regulated by law. Betting on the traditional lottery, in modalities such as the popular Mega Sena, and in turf, a sport that promotes horse racing, is allowed in Brazil.
The third on the list is in a limbo. Fixed-quota betting was legalized by a law sanctioned by President Michel Temer in 2018, but it is not yet regulated, which should have occurred within four years. This means that the activity, in practice, cannot yet be fully carried out in Brazilian territory without falling into the Criminal Misdemeanor Act.
Fixed-quota bets became popular as sports betting, and spin billions of reais without operating with Brazilian CNPJs or going through inspection or taxation by the country's bodies. However, they are a short step away from regulation — a decree or an MP signed by the president is enough, without the need for congressional approval.
The other four have a longer road ahead, since none of them are legalized in the Constitution. Soon, its permission would need to be guided by a bill, which requires congressional approval. This Bill exists: it is 442/91, which has already been approved in the House, under the rapporteurship of Congressman Felipe Carreras (PSB-PE), and should be discussed in the Senate during this first semester.
The text allows, in general terms, the legal establishment of companies in Brazil that operate the jogo do bicho, bingo and videobingo, in addition to releasing the construction of casinos in hotels and resorts and giving the endorsement to sites ".com.br" offer online gambling in the country. Since 1946, any of these activities is prohibited in Brazil.
But that does not mean that legalization will be soon. To get a notion of the delay, the Bill was created more than thirty years ago (it is from 1991) and, after passing among the deputies, is in the hands of the President of the Senate, Rodrigo Pacheco (PSD-MG), since March 2022. In almost a year, a rapporteur has not yet been appointed for the matter in the House. If it obtains approval among senators, the law would need to be sanctioned by the President of the Republic and then regulated via decree —which can take years after the sanction, such as fixed-quota betting.
Source: Veja
