Senators introduce another bill regarding bingo.

Bingo I 11.05.04

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The leader of the PSDB party in the Senate, Arthur Virgílio (AM), presented a bill this Thursday that prohibits the operation of slot machines and electronic bingo but allows the operation of traditional bingo halls. The bill also stipulates that Caixa Econômica Federal (a Brazilian bank) can unilaterally rescind contracts authorizing the operation of electronic machines, leaving only lotteries for sports, numerical, and social prediction contests, such as Mega-Sena and state lotteries, permitted. According to the bill, traditional bingo halls may operate as long as they are regulated by law. For the PSDB leader, the proposal combats money laundering and guarantees the maintenance of the 320 direct and indirect jobs generated by the sector.

Senate Bill No. ____, of 2004

It prohibits, throughout the national territory, the operation of games on electronic, electromechanical or mechanical machines, regardless of their trade names, and provides other measures.

Article 1. The operation of games on electronic, electromechanical, or mechanical machines is prohibited throughout the national territory, regardless of their trade names.

§ 1 The prohibition referred to in the heading of this article implies the express removal of the public service nature conferred on this type of gambling operation, which exceptionally derogated the rules of Criminal Law.

§ 2. The provisions of the first paragraph of this article do not apply to the following lottery modalities:

I – Sports Prediction Contest Lottery;

II – Lottery for Numerical Predictions Contest;

III – Permanent Bingo;

IV – Occasional Bingo;

V – Social Lottery.

Article 2. All licenses, permits, concessions, or authorizations for the operation of games prohibited by this law, whether directly or indirectly issued by Caixa Econômica Federal, state authorities, the Federal District, or municipal authorities, are hereby declared null and void.

Sole paragraph. Caixa Econômica Federal and the authorities referred to in the heading of this article must proceed with the immediate unilateral termination of existing contracts or revoke the authorizations for the operation of their respective establishments, without any type of compensation.

Article 4. Failure to comply with the provisions of Article 1 of this law shall result in a daily fine of R$ 10.000,00 (ten thousand reais), without prejudice to the application of applicable criminal measures.

Article 5. Failure to apply the provisions of this law subjects the federal public servant or employee of Caixa Econômica Federal who causes it to the penalties of dismissal from public service or, as the case may be, dismissal for just cause, without prejudice to any applicable criminal sanctions.

Article 6. The lottery modalities referred to in paragraph 2 of Article 1 that do not have regulations must be regulated and established as a public service.

Article 7. This law enters into force on the date of its publication.

JUSTIFICATION

The Waldomiro Diniz episode, widely publicized by the media starting on February 13, 2004, prompted a hasty decision by the government to propose the elimination of all forms of bingo and other gambling games through Provisional Measure No. 168/04.

On the other hand, the issuance of the Provisional Measure was an overwhelming, hasty, and contradictory decision, since the Presidential Message sent to the National Congress on February 16, 2004, to open legislative work, intended to regulate the activity of bingo games, as detailed in the text of the Message itself.

Even so, the government only looked at the dark side of the activity, thinking about eliminating money laundering, tax evasion, illegal gambling, and other illicit activities that, according to reports, are behind this activity.

However, the government did not take into account the social impact that the measure would have. According to information from representative entities in the sector, approximately 320 people would be directly or indirectly employed in the activity.

Because the Provisional Measure was not widely debated and due to its immediate impact and effects, it was rejected in the Senate Plenary Session on May 5, 2004.

In this sense, we are proposing the following bill so that the matter can be widely debated in the Senate and that all sectors involved can express their opinions and contribute to the development of consistent and lasting legislation that brings to the legal system the necessary rules to provide transparency to the activity.

Meeting Room, May 2004.

Senator Arthur Virgílio Senator José Agripino

PSDB Leader PFL Leader

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