The discussion about the legalization of gambling in Brazil has been going on for a long time. This issue has been debated since the constituent assembly, when, by choice, the text of the Federal Constitution did not include any prohibition on the legalization of gambling. This option foreshadowed that perhaps, one day, Brazilian society and its institutions would be mature enough for gambling to become legal again in the country. It seems that time has come.
With the approval of Bill 2234/2022 by the Constitution and Justice Committee of the Federal Senate, the legalization of gambling takes an important step towards becoming a reality in Brazil. Once the project is approved in the Senate Plenary and subsequent presidential sanction, both of which are likely, we will have the end of this legal saga.
However, any prediction about when and how activity in the country will actually develop will prove to be hasty. There are still many steps to be taken, until a casino actually operates along the lines of other countries. Legislation is an important step, but not the only one.
There are some challenges to be overcome after the project is approved. The first and most important, in our view, is for the government to organize a regulatory and supervisory agency for the activity, similar to what happens in other countries. The activity needs to be regulated in detail.
Nevada, the US state in which Las Vegas is located, for example, has a regulatory and inspection office that establishes operating rules for casinos called the Nevada Gaming Control Board (NGCB). This regulatory entity determines that all gaming operators, employees and suppliers obtain licenses to work in casinos. This ensures that all parties involved in the gaming industry meet rigorous standards of integrity and competence.
The NGCB also sets technical standards for all gaming devices, including slot machines, to ensure they operate fairly and accurately. This includes specifications for software, hardware, and random number generation. It also requires casinos to keep detailed financial records and submit regular reports, which help the board monitor casino finances and ensure proper accounting practices.
In Nevada, regulations exist to protect gamblers, including requirements for clear and accurate disclosure of gaming rules and odds. Casinos must also provide resources for responsible gaming and handle player disputes.
The NGCB has the authority to investigate and enforce compliance with gaming regulations. This includes carrying out audits, inspections and investigations, as well as imposing fines or revoking licenses for violations. These regulatory measures help maintain the integrity and stability of Nevada's gaming industry, protecting both players and the public interest.
In Bill 2234/2022, in its art. 7th, the establishment of the National Gaming and Betting System (Sinaj) is planned, which will be constituted by the Ministry of Economy, gaming and betting operators, accounting audit companies, self-regulatory entities of the gaming and betting market, machine rental companies and horse racing organizing entities. The sole paragraph of that same article authorizes the Executive Branch to create a regulatory agency.
After the creation of this regulatory agency, it is necessary to establish the operating rules for casinos. This is not a simple task, notably because it involves qualified professionals both in drafting the regulation and in its implementation. Just to give you an idea, the NGCB rules compilation has more than 400 pages, with detailed rules.
The Bill is suitable for the Brazilian reality and complies with the standards of other countries that explore the activity. But the challenge is just beginning. The regulation of the activity by an agency that has expertise is the major bottleneck for the proper functioning of gambling and betting in Brazil.
Luciano Andrade Pinheiro
Partner at Corrêa da Veiga Advogados. Graduated in Law from the Federal University of Bahia. Master in intellectual property and technology transfer from UNB; President of the OAB/DF Sports Law Commission.
Mauricio Corrêa da Veiga
Partner at Corrêa da Veiga Advogados. Master and PhD student in Legal Sciences from the Autonomous University of Lisbon (UAL); Postgraduate in Labor Law and Process from Cândido Mendes University; Founding member of the Brasiliense Academy of Labor Law (ABRADT); President of the IAB Sports Law Commission; professor of Master Diritto and Sport at the Sapienza University of Rome; founding member of the National Academy of Sports Law.
Lucas Barbosa Araújo
Graduated in Law from the University of Brasília (UnB). Master's student in Constitutional Law at the University of Brasília (UnB). Associated with Corrêa da Veiga Advogados. Member of the Young Commission of the National Academy of Sports Law (ANDD-Lab) and secretary of the Sports Law Commission of the Brazilian Bar Association, Federal District Section (OAB/DF).
