The legalization of gambling and the reopening of casinos in Brazil are under analysis in the Commission on Constitution, Justice and Citizenship (CCJ), which has a meeting scheduled for Wednesday (22), starting at 10am. PLS 186/2014, by Senator Ciro Nogueira (PP-PI), authorizes the exploitation of online or face-to-face games throughout the national territory.
The original proposal was amended by the rapporteur, Senator Benedito de Lira (PP-AL), to become a substitute text, which was presented to the members of the committee at the meeting on the 8th of this month. The discussion and voting process was postponed to attend a collective request.
Through the rapporteur's text, gambling regulation should include local jogo do bicho, bingo, videobingo, casinos in integrated leisure complexes, sports and non-sports betting and online casinos.
The substitute determines the inclusion of companies authorized to explore gambling in the Money Laundering Law, obliging them to register customers and inform operations to the Financial Activities Control Council (Coaf). It also requires the Central Bank (BC) to take steps to prohibit the use of payment instruments, such as credit cards, in online gambling administered by an uncredited company.
The control measures on accredited establishments should oblige them to promote the identification of all players who receive awards over R$ 10,000 (USD 3,065). These data will need to be forwarded to the federal government.
The substitute also establishes minimum and maximum limits for fines charged for administrative infractions. This taxation should start at R$ 10,000 (USD 3,065), and can reach R$ 500,000 (USD 154,000). The amounts collected should be applied in the area of public security.
Addiction and penalties
The risk of addiction associated with the activity was recognized in the report by Benedito de Lira. Thus, it was defined the obligation of establishments that exploit gambling to display, with prominence, a message warning of this possibility in case of excessive practice.
Three crimes, with their respective penalties, were foreseen in the substitute of the rapporteur. Those who allow the participation of children under 18 years of age in games or explore the activity without accreditation should sour a sentence of three months to a year of detention, in addition to paying a fine. Anyone who defrauds, adulterates or controls the outcome of the game or pays the award in disagreement with the law may be subject to detention from six months to two years and to payment of a fine.
Benedito de Lira also took advantage, in his substitute, a suggestion examined by the extinct Special Commission of National Development (CNEDN) on the new contribution to be generated by the legalization of games of chance. As explained in the report, the tax should be paid by those who explore the activity and will have a 10% or 20% rate, depending on, respectively, the offer of the game in a physical or virtual environment.
The basis of calculation of the tax should be the total gross revenue, after deducting the prizes paid. As for the proceeds of the collection, the Union will have to pass 30% to states and the Federal District and 30% to municipalities for compulsory application in health, welfare and social assistance.
"Imaginary of civilization"
The CCJ rapporteur is convinced that regulation of gambling is desirable. In his vow, Benedito de Lira uses the term "games of fortune".
"It is necessary to remember that games have always been part of the imagery of civilization. They are at the origin of culture. In addition, the long period of prohibition of the gaming in Brazil, about 75 years, eventually mislabeled this activity as a moral issue, including, contaminating the debate on the legislation of the games," he said.
Benedito de Lira also considered the "extremely serious budgetary situation" faced by the Federation's entities to strengthen the defense of PLS 186/2014.
In justifying the presentation of the bill, the author, Senator Ciro Nogueira, argued that gambling is legal in 75% of the 193 member countries of the United Nations. Brazil is part, therefore, as pointed out by the parliamentarian, of the 25% who did not legalize the activity. In case the activity is recognized again by law, according to the calculations presented, the country could proceed to collect about R$ 15 billion (USD 4,6b) more in taxes per year.
Critics
The issue, however, is far from a consensus among parliamentarians. Senators from various parties have already opposed the proposal. One of the recurring criticisms holds that the practice will facilitate the crime of money laundering. Senator Lindbergh Farias (PT-RJ) opposed the inclusion of the project in the CCJ's agenda.
The legalization of gaming returned to the news after the meeting of the governors with the presidents of the Chamber of Deputies, Rodrigo Maia, and the Senate, Eunício Oliveira. At the meeting, they suggested the legalization of the activity to increase the collection, with the allocation of taxes to the area of public security. The president of the Senate acknowledged that the issue is controversial, but said that the decision will eventually be the Plenary, and it is up to it to regulate the matter.
Understanding the proposal
Senate Bill No. 186/2014 regulates the exploitation of games of fortune in the country, where the gain and loss depend exclusively or mainly on a random future event.
Games of fortune are considered:
» Jogo do bicho
»Videobingo and videogame, online and in person
»Bingo Game
»Casino games in integrated leisure complexes
»Sports and non-sports betting, online and in person
»Online casino games, among others
The project defines the following terms and operating methods:
»Bet: The player's choice of the options available in the game and the amount he wishes to allocate in the available option, where the win depends on the outcome of the match, event, competition or any other random future events, over which does not have control or interference
»Prorated game: any game in which the amount to be paid to the winners is fixed from the percentage of the amount collected before the realization
»Banked game: any game in which the bettor places bets in opposition to the accredited company and in which the amounts paid for each winner are established in advance, regardless of the amount collected from the bets.
»Payout rate: percentage of the amount allocated to the prizes according to the amount to be paid, in prorated play.
»Control Management System (SGC): administration software responsible for the supervision of gambling activities, which controls and monitors bets, revenues, expenses and premium payments to bettors.
Source: GMB / Agência Senado
