A bill regulating gambling is on the agenda of the CCJ (Committee on Constitution, Justice and Citizenship).
While the author and rapporteur – Ciro Nogueira (PP-PI) and Benedito de Lira (PP-AL), respectively – defend the need to establish a regulatory framework for the operation of these games in Brazil, some senators do not see the legalization decision as correct. Ciro and Benedito take into account the historical and cultural aspect of the games and the relevance of their social function for the country.
According to Ciro, it is necessary to abandon demagogic rhetoric and recognize that prohibitive legislation has not altered the illegal gambling landscape in Brazil, which annually generates more than R$ 18 billion in clandestine bets through the jogo do bicho (animal lottery), bingo, slot machines, sports betting, e-gaming, and online poker.
Benedito also points out that games have always been part of the collective imagination of civilization, are at the origin of culture, and in Brazil, they were "mistakenly" labeled as a matter of morality, which has contaminated the debate on gaming legislation.
Contraries
For Magno Malta (PR-ES) and Randolfe Rodrigues (Rede-AP), authors of the two alternative texts that call for the rejection of the bill, the exploitation of gambling encourages money laundering, has impacts on habitual gamblers, and is not expected to increase tax revenue or promote tourism in Brazil.
The text of PLS 186/2014 contemplates the regulation of the jogo do bicho (a type of illegal lottery); video bingo and video games; bingo; casino games in integrated leisure complexes; sports and non-sports betting; and online casino games. The licensing for operating bingo and video bingo will be valid for 20 years, renewable for an equal period, and will be the responsibility of the states. Casino licensing will be valid for 30 years, renewable for successive periods.
The rapporteur also decided to incorporate, in his substitute bill, a suggestion examined by the Special Commission for National Development (CEDN) regarding the new contribution to be generated by the legalization of gambling in the country. As explained in the report, this tax will be due from those who operate "games of chance" and will have a rate of 10% or 20%, depending, respectively, on whether the game is offered in a physical or virtual environment.
Its calculation basis should be the total gross revenue, less any bonuses paid. Regarding the proceeds from its collection, the Federal Government must transfer 30% to the states and the Federal District and 30% to the municipalities for mandatory application in health, social security, and social assistance.
Money laundry
Another initiative by the rapporteur of the CCJ (Committee on Constitution, Justice and Citizenship) was to include companies authorized to operate gambling in the Money Laundering Law, obliging them to register clients and report transactions to the Council for the Control of Financial Activities (Coaf). Benedito de Lira also stipulated in the text that the Central Bank (BC) should take measures to prohibit the use of payment instruments, such as credit cards, in online gambling games administered by non-accredited companies.
Control measures over accredited establishments should require them to identify all players who receive prizes exceeding R$ 10. This data will have to be sent to the federal government.
The substitute bill also established minimum and maximum limits for fines levied for administrative infractions. This taxation should start at R$ 10 and reach up to R$ 500, with the collected funds to be applied to public safety.
If approved by the CCJ (Committee on Constitution, Justice and Citizenship), since it is a substitute bill, the project must go through a supplementary round of voting.
