From the night of approval in the Chamber of Deputies (February 24) until today, many international companies in the sector contacted GMB to obtain the full text of Bill 442/91 in English in order to analyze it in detail with their boards. It is due to this need and the enormous interest aroused by the promising Brazilian market that, thanks to the courtesy of AGS, GMB offers here the text translated by “The Spanish Group”, an internationally recognized certified translation service.
Download Bill's text in English here
AGS delivers the gaming experiences that delight operators + players around the world. Powered by high-performing Class II and Class III slot games, standout service and game cabinets, an award winning table products portfolio, and popular social and iGaming presence, AGS offers an unmatched value proposition for casino partners.
The scope of the approved law
Las week, the Chamber of Deputies approved by 246 votes in favor and 202 against Bill 442/91 to legalize gambling in Brazil. According to the final text, the exploration of casino, bingo, jogo do bicho and online gaming is allowed in the country. Bets may be operated through physical or virtual establishments. The regulation of sports betting came under Secap orbit. Thus, legislators took a historic step towards ending illegal gambling and creating a regulatory framework that generates jobs and revenue.
Gambling project provides for a contribution of 17% on the gross revenue resulting from the activity, the creation of an inspection fee for issuing a license and an incidence of Income Tax of 20% on the net prizes equal to or greater than R$ 10,000.
The text also includes the inspection fee for gambling and betting, the triggering event of which is the exercise of the police power legally assigned to the Ministry of Economy for the inspection of activities. According to the opinion, bingo operators will pay a fee of R$ 20,000 per licensed establishment. Online gaming will pay R$ 600,000 per licensed domain. Casinos, R$ 600,000 per licensed establishment, while jogo do bicho will pay a fee of R$ 20,000 per licensed entity.
Regarding the casinos, the license will be through a technical tender and proposed price and the highest bid to obtain the license and with paid-in capital of R$ 100 million. It is forbidden to license more than one establishment per state to the same economic group and more than five to the same economic group in the national territory.
The limited existence of licenses for integrated casinos is conditioned to the population criterion of 1 license for UF with up to 15 million inhabitants, 2 licenses for UF between 15 million and 25 million inhabitants and 3 licenses for UF with more than 25 million inhabitants. The text includes the possibility of operating casinos on river vessels and an additional license for the states of Pará and Amazonas due to their territorial dimensions.
The bill seeks to allow all 26 states and Distrito Federal in Brazil the ability to create a casino venue in the form of an integrated resort. This type of option allows for more installations aside from casino gaming such as dining, hotels, and additional entertainment.
License holders would have to complete a tender process with the highest bidder earning the license. Operators will not be allowed to have more than two licenses per state or five in total across the country.
For bingos, 1 venue is limited to every 150,000 inhabitants per municipality and with paid-in capital of R$ 10 million. Limited to 400 video bingo machines per establishment and authorizes operation in stadiums with a capacity of over 15,000 fans. Likewise, tourist entities will be able to explore bingo and video-bingo games.
Regarding jogo do bicho, the license will be through a bidding process of the largest investment proposed and the largest proposal to obtain the license, with a minimum value equivalent to the paid-in capital, with a paid-in capital of R$ 10 million and a resource reserve in guarantee for payment. Every 700 thousand inhabitants can be granted a license in each unit of the federation.
The exploitation of online gaming, through bets on electronic marketing channels, via the internet, mobile telephony, mobile computing devices or any other authorized digital communication channels, is authorized by means of accreditation with the Ministry of Economy.
Source: GMB
