DOM 19 DE MAYO DE 2024 - 00:56hs.
Presented by Felipe Carreras

New Brazil’s gaming law report includes sports betting with operator limit by state

With several relevant changes, Deputy Felipe Carreras presented a new Plenary Opinion to Bill 442/91 that legalizes the exploitation of the gaming sector in Brazil. Sports betting is incorporated into the text, which will be limited to one operator for every 1 million inhabitants in each State. Thus, Brazil could reach a maximum of 203 legal sites. The same limitation applies to online gaming and jogo do bicho. To access a license, companies must have a minimum share capital of R$ 100 million (US$ 19.5m). Jockey clubs will not be able to operate bingo and video bingo games.

*Download here the new Report of the Rapporteur's Full Plenary (available in Portuguese)

The new text presented by Deputy Felipe Carreras maintains the operation of casinos, bingos, video bingo, Jogo do Bicho, online gaming and, now, sports betting (fixed quota) has been included, which are already legalized through Law 13,756, of 2018, pending regulation. To this end, the review is proposing to repeal the articles of the law dealing with fixed-odds bets.

The document provides that sports betting will be explored in a competitive environment, but will be limited to one operator for every 1 million inhabitants in each State or Federal District where the company operates. For states with less than 1 million inhabitants, only one license will be granted.

This new territorial limitation introduced by the law indicates that, for example, Sao Paulo (the most populous state in the country) could have a maximum of 46 legal sports betting sites in operation, since it has just over 46 million inhabitants according to the latest census of 2021. On the other hand, states such as Trocantis, Acre or Roraima will have access to only 1 bookmaker since their population is less than 1 million inhabitants.

 



From this new limitation, it follows that in total a maximum of 203 licenses may be granted to operate sports betting in Brazil, always remembering that the accreditation for its exploitation must be limited to the territorial limits of each State.

Another key data for the market is the inclusion of a minimum capital to access an online gambling license or fixed quota (sports betting). The text stipulates that the legal entity interested in exploring these modalities must be constituted under Brazilian law, with headquarters and administration in the country and, also, with a minimum paid-up capital of R$ 100,000,000 (US$ 19.5m).

In addition, for sports betting and online gaming, it was defined a Gambling Inspection Fee (Tafija) of R$ 600 thousand (US$ 115k) per licensed domain each quarter. For the other modalities, the values were maintained:

I – Bingo Houses – R$ 20,000 (US$ 3,900) per licensed establishment.
II – Casinos – R$ 600,000 (US$ 115k) per licensed establishment.
III - Jogo do Bicho – (US$ 3,900) to each licensed entity.

Jogo do Bicho

In addition to sports betting, according to the new version of the substitute for Bill 442/91, online gaming and Jogo do Bicho operators will also be limited to one license for every 1 million inhabitants in each State or Federal District where the company operates. Also for this modality, there will be a maximum of 203 licenses to be granted throughout the country, always divided by state.

Accreditation for the exploitation of Jogo do Bicho will be granted for a specified period of 25 years (previously 20 years), renewable for an equal period, provided that the requirements set forth in this Law are observed.

In order to give greater security to the operation, inspection and compliance with international standards, the text adds that for the accreditation of video bingo machines and electronic games machines in casinos, the issuance of a technical report by specialized independent laboratories will be mandatory.

Bingos and Casinos

The new text maintains the limitation of three casinos in integrated resorts for states with more than 25 million inhabitants (Sao Paulo), two in states between 15 and 25 million inhabitants (Rio de Janeiro and Minas Gerais) and one for other states (less than 15 million inhabitants).

The licenses for the casinos will be through a bidding process of the largest investment type and the largest proposal to obtain the license, which will have a fixed term of 30 years, renewable for an equal period.

Bingos will also be limited in the number of houses, with a maximum of 1 venue per 150,000 inhabitants in the city where they settle. In them, video bingo or electronic bingo may work, and the use of any other type of gaming machine, such as slots, is prohibited.

The new text provides for the operation of a maximum of 400 video bingo machines in bingo houses. The authorization will be valid for 20 years, renewable for an equal period.

Turf

In the new text, articles that allowed jockey clubs to operate bingo and video bingo games were excluded
, in addition to horse racing bets, but maintained the possibility of exploring bingo games in stadiums with a capacity of over 15,000 fans.

Source: GMB