Regulatory framework should define gaming rules in Brazil

Created on 03/21/1991, by then Deputy Renato Vianna (PMDB / SC), Bill No. 0442 and its 16 annexes were gathered in a substitute called Regulatory Framework for Gaming in Brazil.

For the discussion,a Special Committee was set up to give its opinion on the matter, with Mr. Elmar Nascimento (DEM / BA) and Rapporteur Guilherme Mussi (PP / SP) as Chairman. The Committee on the Regulatory Framework for Gaming had its last meeting on 08/30/2016, which can be accessed at this link: Rapporteur's Opinion

PL 0442/1991 has 16 draft laws attached to it, which are included in the Work Plan (04/11/2015) of the abovementioned Commission.It can be seen in this link: Work Plan


Regulatory Framework

With several meetings held by the Commission during 2015 and 2016, the project deals with the legalization, licensing, implementation and supervision of services linked to the Games of Chance, namely:

• Casinos: competence of the Union;
• Bingos: in charge of the municipalities;
• Lotteries administered by CAIXA: privatization of the Exclusive Instant Lottery - Lotex ("Instant Games"), sports betting lotteries transformed into online games and the regulation of fixed-odds bettings.
• State Lotteries: with state control;
• Jogo do Bicho: in charge of the State Governments

The project also stipulates that the machines:

• Video-Bingo
• Electronic Games in Casinos
• BR1 type
• Slots

can only operate within the duly licensed locations.

Requirements

According to the Regulatory Framework for Gaming in Brazil, the licensing for the operation of a casino will require a space for the casino itself and for a complex attached to it that includes a leisure area, a hotel with a minimum number of rooms depending on the population, restaurants and bars. The number of casinos by state or Federal District is also limited by the local population. Already for the bingo halls, their requirements are as to the area to be used and the amount of machines to be installed. Other requirements are listed on the link: Rapporteur's opinion

Investments

• Caesars Entretainment: with investments for the installation of Casinos / Hotels / Shopings / Restaurants / Showrooms;
• Las Vegas Sands Corporation: Through its CEO, Sheldon Adelson, the group was in Brazil attending meetings with Deputies and President Michel Temer. It is interested in installing 3 Casinos in Brazil and only awaits the approval of the regulation gaming;
• Estoril Sol Casinos w: with casinos in Lisbon, Estoril and Póvoa, it has interest in Brazil, with the installation of Casinos and Hotels;
• MGM Resorts International: It is a collection of casino resorts. MGM Mirage is the second largest casino company in the world.

Conclusions

With the spreading of the Games of Chance in the Union, the States and the Municipalities, there are interests of each sector involved, in order to leverage the collection of taxes, boost tourism with its hotel network, create a large number of jobs and trade local level benefiting from all these investments, which will not be small.

Concerns about money laundering, trafficking in influence, tax evasion, drugs, prostitution, etc. should be raised. In view of this, the Commission should demand that inspection be rigorous and efficient!

On the other hand, it is asked:

- How will the Lottery stores stay in business with this avalanche provoked by Games of Chance?

Two games modalities, which are (or were) the Lottery's domain, are practically defined:

• Instant Lotteries: Exclusive Instant Lottery - Lotex ("Instant Games") that will be privatized soon;
• Sports Prediction Lotteries: Loteca (former Sports Lottery) and LotoGol that will be transformed into Online Games and possibly privatized also.

As for the other popular Brazilian lotteries (Mega Sena, Double Sena, Quina, LotoFácil and LotoMania) and the Federal Lottery (tickets), they are expected to continue with the Lottery Stores.

Cláudio Roberto Vigna

Bachelor of Pure Mathematics from the Institute of Mathematics and Statistics of the University of São Paulo / SP and a Licentiate Professor in Mathematics, Physics and Design from the Faculty of Philosophy Sciences and Letters of Moema - São Paulo / SP. He is a managing partner of CRV Sistemas & Consultoria, a company that since 1984 has supported Lottery Houses in all its segments. He is also a Consultant and Auditor providing specialized management services in the area of Lotteries.