Bill No. 2944/2004 authored by Representative Valdemar Costa Neto

BILL NO. 2944/2004

Establishes rules for bingo games throughout the national territory and provides other measures.

I- OF BINGOS
Article 1 – Bingo games, as a recreational activity for their participants, are permitted throughout the national territory, under the terms of this law.
Article 2 – The revenue from bingo games, as provided for in this law, will be used to promote, develop and encourage sports and to raise funds for social programs against hunger throughout the national territory.
Article 3 – Bingo games are permitted in the following formats: group, electronic, and individual.
§ 1 – Collective Bingo is that which is carried out on printed cards, duly authorized, used in the course of the activity, whose numbers – from 1 to 90 – are drawn successively, by means of a ball extraction process, using electromechanical or electronic equipment, without external interference and free from human contact that ensures the complete fairness of the results, until one or more competitors reach the previously determined objective (full or accumulated card line), thus becoming entitled to the established prize.
§ 2 – Electronic Bingo – is bingo played on virtual cards, whose numbers are drawn by an electronic device, without manual contact from the operator, until one or more players achieve the objective.
as previously determined, thus entitling the recipient to the established prize.
§ 3 – The installation of a closed-circuit television and sound broadcasting system is mandatory, allowing all participants to see and hear each procedure of the draws and to follow them.
§ 4 – Video Bingo (Individual Electronic Bingo – BEI) is electronic bingo played on a video monitor, displaying balls, figures, cards or any other form of demonstration of the winning combination, whose combinations are drawn electronically, up to a pre-determined limit, by means of a dedicated program, activated individually by the player, whose flash memory, inviolable and linked to the machine's electronic program, records all operations performed during its use in which a single player competes for a winning sequence, previously established in a prize table.
§ 5 – Philanthropic or charitable bingo games of an occasional nature are not subject to this law, and the specific legislation for their organization shall apply.
Article 4 – In locations designated for the operation of Collective Bingo, with a minimum capacity of 250 (two hundred and fifty) seated persons, in a comfortable and safe manner, the operation of Video Bingo and Individual Electronic Bingo (BEI) may be authorized.
§ 1 – The installation and operation of Video Bingo or Individual Electronic Bingo (BEI) in exclusive locations is prohibited.
§ 2 – Individual Video Bingo (VBI) machines may not exceed three-quarters of the number of seats in Collective Bingo, in the same operating location.
Article 5 – The bingo cards to be used in bingo games will be standardized, according to a model approved by the Social Fund for Hunger, Culture and Sports – FSFCD.
Article 6 – The sale of raffle tickets is prohibited outside the location where the drawings will take place.
Article 7 – Bingo halls may maintain bar and restaurant services, as well as supplementary artistic and cultural performances in addition to their main activities.

II – THE AWARDS
Article 8 – The amount collected during the day, in the Collective Bingo and Electronic Bingo, will be applied as follows:
I – Bingo and Line – 75% (seventy-five percent) of the prizes must be guaranteed, and of this, 10% (ten percent) for the line and 85% (eighty-five percent) for the full card.
II – Accumulated – will be 5% (five percent) of the amount allocated to prizes, distributed as follows: 4% (four percent) for the accumulated amount and 1% (one percent) for maintaining a reserve of the accumulated amount.
III – Individual Electronic Bingo (BEI) – each machine must ensure, randomly, in a time cycle set by it, the return of 85% (eighty-five percent) of the amount wagered, with 1% (one percent) being allocated to the formation of its accumulated bingo amount.

III – THOSE RESPONSIBLE AND THEIR FUNCTIONS.
Article 9 – The individuals responsible for the activity areas in bingo halls, without prejudice to applicable labor legislation, are as follows:
I – Game Director – is primarily responsible for the Bingo Hall, overseeing and monitoring all operational activities, as well as administrative control; customer registration; financial transactions; receiving payments and paying out prizes.
Sole Paragraph – The Games Director will be appointed by the Board of Directors as its legal representative in each Bingo Hall.
II – Room Manager – is responsible for the gaming rooms in each establishment, and must oversee the operation of Conventional Bingo, Electronic Bingo, and Video Bingo games.
III – Head of Registration – is responsible for controlling and managing the registration of clients and their admission.
IV – Cashier Manager – is responsible for supervising cashier operations, receiving bets, paying prizes, and selling betting slips.

IV – ACCREDITATION AND AUTHORIZATION OF COMPANIES
Article 10 – The accreditation of companies managing bingo halls and companies operating individual bingo games will be the responsibility of the Social Fund for Hunger, Culture and Sports – FSFCD.
Article 11 – The following are requirements for the accreditation of companies that manage bingo halls:
I – a copy of the respective articles of incorporation, and subsequent amendments, duly registered or recorded in the competent registry office, or in the Commercial Registry;
II – proof of proper incorporation and registration with the National Registry of Legal Entities (CNPJ) of the Ministry of Finance;
III – Proof of State Registration, or in the Federal District, and Municipal Registration;
IV – proof of payment of a minimum share capital of R$ 250.000,00 (two hundred and fifty thousand reais) per bingo establishment;
V – the formalization of a "grant guarantee" through insurance in the amount of R$ 250.000,00 (two hundred and fifty thousand reais), to be deposited into a National Treasury account in authorized banks.
V – Certificates of no outstanding federal, state, and municipal taxes, Social Security contributions, and contributions to the Guarantee Fund for Length of Service (FGTS);
VI – submission of certificates from federal and state courts, including civil, labor, and criminal records, as well as protest registries, in the name of the company, its partners, and directors;
VII – submission of a complete floor plan, approved by the Municipal Authority, and the respective permit for the location of the bingo hall, with a favorable opinion on the urban and social aspects of the project.
Sole Paragraph – The amount referred to in item V of this article will be refunded, in the event of the company's dissolution with the termination of its economic activity, in accordance with article 811 of Decree 3.000, of March 29, 1999, adjusted for inflation using the SELIC rate.
Article 12 – In addition to the requirements mentioned in items I, II, III, V and VI of the previous article, the following are requirements for the accreditation of companies operating individual bingo games:
I – proof of fully paid-up share capital of at least R$ 3.000.000,00 (three million reais);
II – proof of ownership of at least 2.000 (two thousand) Individual Video Bingo (VBI) machines, authorized to operate, through the acquisition of social operating seals, in accordance with the established technical standards.
in this law.
III – a copy of the contract between the individual bingo operator and the collective bingo administrator, with a minimum term of 1 (one) year, having as its object the installation of at least 2.000 (two thousand) Individual Video Bingo (VBI) machines, in their own suitable rooms, in accordance with this law.
IV – submission of technical reports, prepared by reputable companies, indicating the suitability and operability of the machines.
V – the formalization of a "grant guarantee" or surety bond in the amount of R$ 1.000.000,00 (one million reais), to be deposited into a National Treasury account at authorized banks.
Sole Paragraph – The amount referred to in item V of this article will be refunded in the event of the company's dissolution and cessation of economic activity, in accordance with article 811 of Decree 3.000 of March 29, 1999, and adjusted for inflation using the SELIC rate.
Article 13 – Individual Video Bingo machines must be manufactured domestically.
Sole Paragraph – Parts, supplies, and machinery similar to those in the national industry may be imported.
Article 14 – The accreditation referred to in Articles 9 and 10 of this law is valid for 1 (one) year, and upon renewal, the requirements mentioned therein must be proven, as well as the payment of taxes and fees.
Article 15 – The operating seals for Individual Video Bingo machines are valid for 3 (three) months from the date of issue, renewable for the same period, upon proof of payment of the fees referred to in this law.
Article 16 – Accreditation and authorization are non-transferable.
Article 17 – Participation in bingo game companies by employees, civil servants, or public servants of the direct or indirect municipal, state, or federal administration is prohibited under any circumstances.

V – BINGO ACTIVITIES – TAXATION OF PRIZES AND FEES
Article 18 – The annual accreditation fee for companies managing collective bingo games is R$ 10.000,00 (ten thousand reais).
Article 19 – The annual authorization fee, the basis for calculation, will be R$ 140.000,00 and will be based on the following for each bingo hall and its respective individual electronic bingo machines:
a) 0 to 100 BEI R$ 140.000,00 b) 101 to 150 R$ 210.000,00 c) 151 to 200 R$ 280.000,00 d) 201 to 250 R$ 350.000,00 e) above 250 R$ 420.000,00
Art. 20 – The value of the stamp referred to in article 13 of this law, corresponding to each individual Video Bingo machine, shall be R$ 2.400,00 (two thousand and four hundred reais).

VI- FROM THE SOCIAL FUND FOR HUNGER, CULTURE AND SPORT – FSFCD.
Article 21 – The Social Fund for Hunger, Culture and Sport – FSFCD is hereby created, to which the resources provided for in this law will be directly credited, intended for social and cultural inclusion and the promotion of sport throughout the national territory.
Article 22 – The following constitute the resources of the Social Fund for Hunger, Culture and Sport – FSFCD, as provided for in this law:
I – the fees;
II – fines resulting from administrative infractions;
III – other resources or funds allocated to them.
Article 23 – The resources of the FSFCD are intended exclusively for social and cultural integration programs and the promotion of sports, and may not be applied to other sectors or for other purposes.
Article 24 – The transfer of resources referred to in Article 19 of this law shall observe the origin of the revenue generation, as follows:
I – 30% (thirty percent) to the State or the Federal District;
II – 10% (ten percent) to the State or Federal District Department of Culture.

VII- FUND MANAGEMENT
Article 25 – The Ministries of Sport, the Extraordinary Ministry of Food Security and Combating Hunger, and the Ministry of Culture, as managers of the FSFCD, will form a joint commission, composed of a representative to be...
Nominated by each member, the following is the responsibility of:
I – to regulate social sports programs;
II – To perform all acts necessary for the management of the FSFCD, in accordance with the guidelines established in the social sports programs;
III – to regulate the disciplinary procedures for all actions within the scope of the FSFCD;
IV – to authorize the release of funds for its programs;
V – to control the application of resources;
VI – define the frequency and content of the management reports to be provided by the operating agent;
VII – to deliberate on other matters of interest to the FSFCD;
VIII – transfer to each federative unit the percentage established in article 24;
IX – to supervise, either directly or through delegation, the activities of bingo gaming companies, applying sanctions for administrative infractions after due administrative process, and to judge appeals filed.

VIII – ADMINISTRATIVE OFFENSES AND ADMINISTRATIVE PROCEDURE
Article 26 – The following constitute administrative offenses:
I – the entry and stay of minors under 18 (eighteen) years of age in the bingo hall;
II – the payment or offer of non-monetary rewards, or rewards of any kind;
III – to adulterate, defraud, manipulate or control, by any means or method, the outcome of bingo games;
IV – the practice of any kind of gambling or the installation of electronic amusement machines, other than those established in this law;
V – failure to comply with any of the obligations set forth in this law.
Article 27 – The administrative sanctions applicable for the infractions of the previous article are as follows:
I - warning;
II - fine;
1. R$ 50.000,00 (fifty thousand reais) per infraction;
2. R$ 100.000,00 (one hundred thousand reais) per infraction, in case of recidivism; III – seizure of bingo game equipment and materials;
IV – temporary suspension of operations;
V – revocation of authorization and/or accreditation.
Sole Paragraph – Administrative sanctions are applicable independently of the criminal sanctions provided for in this law.
Article 28 – Upon verification of the infraction, the respective report shall be drawn up, with a detailed description of the facts and indication of the legal provision infringed, and a copy shall be sent to the person responsible for the premises.
Article 29 – Once summoned, the offender will have a period of 15 (fifteen) days to request evidence and list witnesses.
Article 30 – After hearing the witnesses and completing the evidence, the offender will have a period of 5 (five) days for final arguments, after which the process will be decided, and the duly justified administrative sanction will be applied.
Article 31 – An appeal may be lodged against the conviction within 10 (ten) days of the date on which the offender is notified of the conviction.
Sole Paragraph – The appeal will have both devolutive and suspensive effect.
Article 32 – The provisions of Law 9.784, of January 29, 1999, shall apply to the administrative infraction process, where applicable.

IX – OF CRIMES
Article 33 – To maintain, facilitate, or conduct bingo games, or games of chance, other than those provided for in this law, or without authorization.
Penalty: imprisonment from six months to two years and a fine.
Article 34 – To defraud, tamper with, or control in any way the outcome of an authorized bingo game.
Penalty: imprisonment from 1 to 3 years and a fine.
Art. 35 – Allowing minors under 18 (eighteen) years of age to enter a bingo hall.
Penalty: imprisonment from 1 to 3 years and a fine.
Article 36 – Failure to account for collected funds, or omitting information, or failing to comply with any of the obligations set forth in this law.
Penalty: imprisonment from 6 months to 2 years and a fine.

X – GENERAL PROVISIONS
Article 37 - In bingo establishments and on Individual Video Bingo (VBI) machines, messages will be posted, either prominently or on an electronic panel visible from a long distance, regarding the possibility of addiction due to a lack of moderation in the practice of the activity.
Article 38 - The values ​​expressed in this Law will be subject to annual review.
Article 39 – This law shall enter into force on the date of its publication, repealing any provisions to the contrary.

JUSTIFICATION
Bingo games have been the subject of controversy regarding their practice, although legal doctrine and jurisprudence from the country's courts have already established that they are recreational activities, without any criminal connotation.
with what are known as "games of chance".
Therefore, in order to define the scope of operations of companies in the sector, it is necessary to issue specific legislation, including to remove from the market those companies that are unable to maintain transparency in their operations, including those that fail to meet the minimum hygiene and comfort standards required of their practitioners.
This bill aims to regulate this activity and is divided into ten chapters. The first chapter, in its first article, defines bingo games as a recreational activity. Thus, it seeks to avoid any other interpretation that might characterize them as "games of chance," or any other designation, aiming to give them the profile of a practice already accepted and widespread in Brazilian society as recreation. The three accepted modalities are defined: collective bingo, using printed cards; electronic bingo, using electronic equipment; and video bingo (individual electronic bingo, using monitors on Individual Video Bingo - VBI machines).
It provides for the installation of a Collective Bingo hall with a minimum capacity of 250 (two hundred and fifty) seats, which will offer comfort and safety to participants. Electronic Bingo and Individual Video Bingo may also operate in the same location, the latter being prohibited from having exclusive areas and not exceeding three-quarters of the number of seats in the Collective Bingo hall. The Collective Bingo cards, standardized by the public authorities, are sold exclusively at the operating locations, and no other form of commercialization is permitted.
The second chapter deals with prizes, defining the application of the amount collected in Collective Bingo and Electronic Bingo, guaranteeing 75% to prizes, with 10% for a line and 85% for a full card. The accumulated prize will be 5% of the amount allocated to prizes.
The third chapter deals with those responsible and their functions, indicating the obligations of the games director, who is the general supervisor, appointed by the Board of Directors as its legal representative; the room manager, who oversees the conduct of the games; the head of registration, who controls and manages customer registration; and the cashier, responsible for receiving bets and paying prizes, as well as selling betting slips.
The third chapter deals with the accreditation and authorization of companies, requiring, for companies managing bingo halls, a fully paid-up capital of R$ 250.000,00 (two hundred and fifty thousand reais), in addition to proof of regularity of their constitution, and proof of payment of federal, state, and municipal taxes and fees. Regarding partners, certificates are required, including from criminal courts, in order to exclude individuals unsuitable for the composition of these companies. The premises must also offer comfort and security, which will be verified through a permit.
A grant security deposit of R$ 250.000,00 (two hundred and fifty thousand reais) is also required, to be deposited into a bank account in favor of the National Treasury.
With regard to companies operating individual bingo, the required capital will be R$ 3.000.000,00 (three million reais), in addition to a minimum one-year contract with the companies managing collective bingo, and also the installation of at least 2.000 (two thousand) individual Video Bingo machines.
These machines will be inspected quarterly upon license renewal, as stipulated in Article 10, IV and Article 13 of the draft law. Article 16 expressly prohibits the transfer of accreditation and authorization.
To avoid any problems with public bodies, Article 17 prohibits the participation, under any title, of officials, civil servants or public employees, from the direct or indirect administration, at the federal, state and municipal levels.
The significant benefit that the regulation of this activity will bring lies in the objective indicated in Article 2 of the bill, which is the allocation of all revenue from fees and other resources to social integration, cultural promotion, and the development of national sports.
For this purpose, the National Fund for Hunger, Culture and Sport is created, which will be responsible, in addition to its management, for overseeing, either directly or through delegation, the activities of bingo gambling companies. The management of the Fund will be the responsibility of the Ministries of Sport, Hunger and Culture.
The resources of this Fund are outlined in Chapter VI of the project, with rates appropriate to the activities, which may be updated annually in accordance with Article 38.
The application of the resources will also benefit the States, with 30% (thirty percent) of the revenue, and the State Culture Secretariats with 10% (ten percent).
It should also be noted that there is job creation, currently estimated at 00.000 (one hundred thousand) direct jobs and approximately 200.000 (two hundred thousand) indirect jobs, numbers that could increase with the regulation of the activity.
Aiming for strict control of the activity, Chapter VII outlines administrative infractions, notably the express prohibition of entry and stay of minors under 18 (eighteen) years of age in bingo game venues. Regarding prizes, they will always be in cash, prohibiting other forms of payment. The practice of gambling or the installation of electronic amusement machines is also prohibited, thus ensuring that bingo game venues are genuine recreational spaces.
In addition to administrative infractions, Chapter VIII specifies the crimes that may be charged against perpetrators of fraud, or who disregard the terms of the law, including with regard to allowing entry or stay of minors under 18 (eighteen) years of age in these places.
The aim, therefore, is to provide legal protection to the legal interest defined in this bill, namely, the maintenance of the activity as healthy recreation and, indirectly, with the social commitment to encourage sports in general, as well as ensuring employment for thousands of people in legitimate locations, complying with labor legislation, which will also provide security for these workers.
Criminal proceedings will be initiated independently of administrative infractions, demonstrating the seriousness with which the regulation of bingo games as a recreational activity is being considered.
Finally, article 37 also stipulates that players will be warned about the negative effects that can result from playing bingo without moderation and beyond the limits of recreation, which will be done through written messages or large electronic panels in the places where the games are played.
Therefore, the regulation of these activities is justified by the social benefits it brings, while at the same time excluding those who, using fraudulent means in inappropriate locations, clandestinely offer games without the proper authorization or oversight from public authorities.
In the social aspect, there is still the offer of work, in a difficult time in this field, to thousands of families, with all legal guarantees, since there is provision for inspection by public bodies in addition to proof of compliance with the Guarantee Fund for Length of Service and Social Security (article 11, V of the project).
These are the proposals we present for your consideration, with the aim of contributing to the improvement of Brazilian society, in accordance with the objectives of this bill.

Meeting Room, February 09, 2004.

Deputy Valdemar Costa Neto – PL/SP