MAR 26 DE NOVIEMBRE DE 2024 - 10:44hs.
Senate’s President would be in favor

Regulation of sports betting may pave the way for the release of casinos in Brazil

The regulation of online sports betting has come to be seen by members of the government and at the top of Congress as a first step towards a possible release in Brazil of games of chance, such as bingos, casinos and the jogo do bicho, two sources said to Reuters. Stalled in the Senate, Bill 442/91 approved in the Chamber awaits definition by the House President, Rodrigo Pacheco.

According to Reuter’s sources, who directly follow the discussions, the intention was verbalized by the president of the Senate, Rodrigo Pacheco, in closed meetings with members of the government and parliamentarians.

The release of gambling has the support of the new Minister of Tourism, Celso Sabino, and would also not face resistance from the Ministry of Finance, which, with an eye on the initiative's revenue potential, proved to be "ready to regulate" the issue if the measure goes forward, said an official in the economic area.

Sought, the Minister of Tourism did not respond immediately. Last week, Sabino said in an interview with Metrópoles website that he is in favor of legalizing gambling.

While still acting as a deputy, he voted in favor of Bill 442/1991, which was approved by the Chamber in early 2022, after more than 30 years of processing. The matter is currently stalled in the Senate and still has no definition of rapporteur in the Constitution and Justice Commission (CCJ).

The text approved by the deputies defines that the exploration of bingos, casinos, jogo do bicho and online gaming will be admitted in Brazil. Obtaining an operating license must comply with a series of criteria, in addition to requiring periodic payment of an inspection fee.

According to one of the sources, the president of the Senate is using the issue of sports betting as a reference to "see how the Treasury controls and puts it in a box of regulation", to then resume conversations in the Senate about the legalization of all gambling verticals.

The Ministry of Finance published this week the provisional measure (PM) to regulate and tax sports betting in the country. The text has the force of law, but still depends on congressional approval.

"Pacheco mentioned that he really wants to see the government's capacity to work on these sports betting to rethink the casino issue," said the source from the economic area, who spoke on condition of anonymity.

A congressional source who participated in a conversation with the senator on the subject said that Pacheco deals with the subject with "the caution that the subject requires", but that he considers the regulation of sports betting a test.

"Obviously, if there is this whole context of 'bets', with this working well, it opens the way for games (of chance) to also be treated in the same way, it ends up being a test," he said.

Sought, the president of the Senate did not comment. The Ministry of Finance, for its part, stated that his job "is to regulate sports betting, having nothing to do with gambling."

US$ 4.2 billion in revenue

Calculations by the office of deputy Felipe Carreras (PSB-PE), rapporteur for the project in the Chamber, point out that the regulation of gambling has the potential to generate an annual collection of R$ 20 billion (US$ 4.2bn). This would be possible by charging the Contribution for Intervention in the Economic Domain (Cide) at a rate of 17%.

The measure would give a boost to government revenues in the midst of an attempt by Finance Minister Fernando Haddad to reverse the fiscal deficit in federal accounts. According to the project, the budget would have defined destinations for areas such as tourism, sports, culture, health, public safety and programs to encourage responsible gaming, in addition to direct transfers to States and municipalities.

The project establishes restrictions on participation in games, such as those under 18 years of age, people in debt, public agents and individuals linked to operating companies. Criminal concepts related to infractions involving games will also be created.

According to the congressional source, party leaders have shown greater sympathy for the measure in recent meetings between senators.

Source: Terra