Bill 2234/2022 was brought up for discussion in the Senate Plenary last December, but due to pressure from opponents of legal gambling, Senator Irajá, the project’s rapporteur, requested its removal from the agenda, fearing it would not be approved.
The decision by Senator Davi Alcolumbre to resume discussion was made on Friday night (4) and took lawmakers by surprise, as the traditional meeting of party leaders, usually held the day before, was canceled by the Senate President.
The original bill, introduced in 1991 and approved by the Chamber of Deputies in 2022, proposes the legalization of casinos, bingo halls, the jogo do bicho (a popular but illegal numbers game), and betting on horse races. Gambling has been banned in Brazil for nearly 80 years.
"The current prohibition does not work, as 70% of Brazilians believe it does not reduce the supply of illegal gambling in the country. Only 25% still think the law is effective today in curbing criminal activities related to illegal gambling, which is dominated by organized crime,” said Senator Irajá in April, after the release of a DataSenado poll.
Irajá estimates that legal gambling could generate around R$ 20 billion (US$3.7bn) in revenue, primarily from taxes on financial transactions involving casinos, bingo halls, jogo do bicho, and horse racing, as outlined in the bill. This amount is comparable to the total budget freeze imposed by the government at the end of March, showing the potential positive fiscal impact of the project's approval.
In addition to tax revenue, the rapporteur projects that regulating the gambling market could attract more than R$ 100 billion (US$18.5bn) in investments and create over 1.5 million new jobs, including both direct and indirect employment.
What does the Bill say?
Casinos: Among other points, the bill authorizes the establishment of casinos in tourist hubs or integrated leisure complexes, such as resorts and high-end hotels. Casinos could also operate on maritime vessels (limited to ten nationwide) and on riverboats with at least 50 rooms, with the number of riverboat casinos proportionally distributed based on the length of the rivers.
Each state and the Federal District may have one casino, with exceptions for São Paulo (up to three), and Minas Gerais, Rio de Janeiro, Amazonas, and Pará (up to two), due to population size or territory.
Bingo: The bill also covers bingo, allowing it to be permanently operated in designated locations, including traditional cards, electronic formats, and video bingo. Each municipality may have one bingo hall, with one additional establishment for every 150,000 inhabitants in larger cities.
Betting Machines: The leasing of betting machines must be registered with public authorities and undergo regular audits. Revenue from gaming machines will be split 40% for the leasing company and 60% for the bingo hall or casino, based on net earnings (total bets minus prizes paid out).
Horse Racing: Betting on horse races may be conducted by turf entities accredited by the Ministry of Agriculture. These same organizations may also be licensed to operate bingo and video bingo games, provided it occurs at the same site as the horse racing.
Taxes: The creation of two new taxes for gaming operators is also planned: the Gaming and Betting Inspection Fee (Tafija) and the Economic Domain Intervention Contribution on the sale of gaming and betting (Cide-Jogos).
To be entitled to an operating license, in addition to other requirements, the company will need to prove the lawful origin of its funds and a minimum capital:
- R$ 10 million (US$1.85m) for bingo halls
- R$ 100 million (US$18.5m) for casinos
- R$ 10 million (US$1.85m) for jogo do bicho operators
Bill 2234 is the fourth item on the voting agenda in the Senate Plenary next Tuesday (8), starting at 2 p.m.
Source: GMB
