DOM 19 DE MAYO DE 2024 - 21:13hs.
Opinion - Gildo Mazza, GMB specialized journalist

New-looking Congress could lead the way in releasing gaming sector in Brazil

Brazil is facing an unprecedented crisis caused by the COVID-19 and needs to recover its economy to avoid further damage to the country, and the National Congress has a fundamental role in this moment when a new direction takes over the Chamber of Deputies and the Federal Senate. There are proposals for regulation of the gaming sector ready to be voted on and the time is now to get hands-on and pass a broad law to attract investments, taxes and many jobs.

The release of the gaming activity in Brazil is a theme that has been going on for decades without a courageous Congress endeavoring to discuss and pass a broad law for the sector. Now, with the new presidencies of the Chamber of Deputies and the Federal Senate, the Brazilian legislature has the opportunity to put itself at the forefront and change the direction of history.

In the Senate, Bills 186/2014, by Senator Ciro Nogueira (PP from Piauí), which authorizes casinos, bingos, jogo do bicho and bets, is ready to be voted on. In it, casinos would be allowed in integrated complexes consisting of hotels, restaurants, convention center and space for shows. Bingos, on the other hand, would be authorized in municipalities with more than 200 thousand inhabitants.

The Bill 186 rapporteur conservatively projects that the tax collection could reach R$ 29 billion (US$4.47b) in the next three years. The figure is certainly much higher, as studies indicate that Brazil currently moves around R$ 20 billion (US$3.08b) a year in illegal gambling and could reach, in a widely regulated market, R$ 80 billion (US$12.3b), generating almost 1 million jobs.

Senator Angelo Coronel (PSD of Bahia), rapporteur of another project in the Senate (Bill 2648 / 2019) that proposes the exploitation of casinos in resorts, defends that the approval of a broader project, which includes casinos, bingos, slot machines, jogo do bicho, etc., could reach at least R$ 50 billion (US$7.7b) and expand the Bolsa Família aid program, which currently serves 14.5 million people. “With the revenue generated by the gaming sector, the government's social program could serve almost 23 million Brazilians,” he says. In his report, Angelo Coronel defends other games and not just casinos in resorts, as in the original project.

The Chamber of Deputies also has its project for the sector ready to be voted on. Bill 442/91 has passed through all the committees and almost four years ago it was approved by a special commission that discussed the topic extensively. This project also includes all the verticals of gaming and ended up shelved by the now ex-president of the House, deputy Rodrigo Maia, who preferred the Las Vegas model, with the approval of only integrated casino resorts.

President Jair Bolsonaro opposed the approval of the gaming sector in Brazil during his campaign for the Presidency of the Republic, but after two years at the head of the Executive, he has already left to his closest interlocutors (including his sons) the movement for approval of casinos.

With the new presidents of the Chamber and the Senate aligned with him, it is very likely that the projects shelved or in the reporting phase will come to the discussion and one of the two Houses could leave in front of the Supreme Federal Court, which put on the agenda for April 7 this year RE 966177, which addresses the typical nature of the conduct of establishing and exploring games of chance. The matter is under the report of the President of the STF, Minister Luiz Fux.

Even though it is difficult to predict the outcome of the vote, it is possible to imagine that the Court will decriminalize activity in Brazil, given the vanguard posture that the Supreme Court has adopted recently.

That is, if the National Congress does not approve the return of gaming to Brazil, regulated and a strong generator of taxes, jobs and wealth, the Supreme Federal Court may do so by interpreting the law.

It remains to be seen whether there is a willingness in Congress to take the lead, in his prerogative as a legislator, and approve the activity, or whether the STF will wait to take the vanguard step and release all types of games in Brazil. It is only to guide.

If the Supreme Court does this, even sports betting, whose regulation is under SECAP, may be a dead letter, since it is considered a lottery modality, it will be free for exploration by the states.

The time is now. Place your bets, gentlemen and senators of the National Congress and Ministers of the Supreme Court.
 

GILDO MAZZA
Gildo Mazza, GMB journalist, specializing in the gaming industry for 25 years