LUN 25 DE NOVIEMBRE DE 2024 - 11:42hs.
Wednesday at 10am

Senate committee votes on this week bill that authorizes casinos, bingos and jogo do bicho in Brazil

The Senate Constitution and Justice Committee (CCJ) has a meeting scheduled for this Wednesday (15), at 10 am, and the vote on Bill 2,234/2022, which legalizes casinos, bingos and jogo do bicho, is on the agenda. The rapporteur, senator Irajá, has already anticipated a vote in favor of the matter. Last week, the CCJ held a fruitful public hearing, which discussed the benefits of the activity for the country’s economy.

Bill 2,234/2022 authorizes the installation of casinos in tourist hubs or integrated leisure complexes, with the limit of one casino per state and the Federal District, with the exception of São Paulo, which could have up to three casinos, and Minas Gerais, Rio de Janeiro, Amazonas, and Pará, where the limit foreseen for each state is two casinos.

According to the proposal, already approved by the Chamber of Deputies under Bill 442/91, gaming houses on maritime and river vessels may also operate, following specific rules. The casino must prove a minimum paid-up share capital of at least R$ 100 million (US$ 19.5m) and can be accredited for 30 years.

The proposition also establishes rules for bingo games in card and electronic modalities and allows for the accreditation of one legal entity per 700,000 inhabitants in each state for the exploitation of the "jogo do bicho" (animal game).

In this case, the authorizations will be valid for 25 years, renewable for an equal period. Horse races may be operated by turf entities (associated with horse racing) accredited by the Ministry of Agriculture, which may also simultaneously operate bingo and video bingo games.

In his report, Irajá dismissed the concept of "indefinite legal concept" of offense to morals and good customs, used as an argument against gambling, and emphasized that the project aims to bring under state control an activity that currently constitutes a misdemeanor.

Citing statistics on the legal or illegal betting market, Irajá concludes that "gambling is already a relevant economic activity." The rapporteur rejected the amendments offered by the senators and offered a drafting amendment replacing references to the "Ministry of Economy" with "Ministry of Finance".

Positive public hearing

Last week, the CCJ held a productive public hearing to discuss the issue. In addition to some opponents of the approval of the matter, the hearing featured Alex Pariente, VP of casino and hotel operations at Hard Rock International; Carlos Henrique Sobral, from the Ministry of Tourism; Guilherme Luís Dias, specialist in inspection and regulation; Thiago Borges, VP of the Brazilian Association of Resorts; and Manoel Cardoso Linhares, president of the Brazilian Hotel Industry Association, among others.

The most consistent statements came from Alex Pariente, VP of casino and hotel operations at Hard Rock International.

For him, casinos are an entertainment activity and widely accepted worldwide. "There are few places where some form of gambling is not authorized. And the success of the industry as an economic activity is undeniable," he said.

He pointed out that "gambling already exists, it just needs to be legalized, as it does not guarantee revenue for the government. Legalization ensures control, creates formal jobs, and attracts foreign investment."

Representing the Minister of Tourism, Carlos Henrique Sobral presented an overview of the sector in Brazil and the challenge the country has to surpass the mark of 6 million foreign tourists per year.

"Our expectation, with integrated resorts, is to increase the number of jobs by 20%. In terms of investments, we can go from R$ 5.6 billion to R$ 66 billion, while revenues would jump by 15%, reaching R$ 74 billion."

According to him, the installation of integrated resorts in Brazil will be preceded by studies and research in terms of social and economic feasibility to define the locations that will receive such ventures.

Sobral emphasized that 71% of the countries that are members of the UN World Tourism Organization have legalized gambling. And of those that have not legalized the activity, 75% of them are Islamic. "In the G20, 93% of the nations have legalized gambling. Only Brazil, Saudi Arabia, and Indonesia do not authorize it, with the latter two being Islamic."

He concluded: "At the UN, 75% have legalized gambling, with Brazil among the 14% of non-Islamic countries that have not legalized the activity. And in South America, only Brazil and Bolivia have not legalized gambling."

In defending the activity, Sobral stated that "destinations with integrated resorts have achieved tremendous economic development, with Las Vegas, Macau, and Singapore being emblematic."

Source: GMB