Separate vote by Senator Magno Malta on the final report of the Bingo CPI (Parliamentary Commission of Inquiry).

Separate vote by Senator Magno Malta on the final report of the Bingo CPI (Parliamentary Commission of Inquiry).
Regarding the Final Report of the Bingo Parliamentary Inquiry Commission, presented by Senator Garibaldi Alves Filho, concerning the presentation of a bill regulating the operation of bingo in the country.
 
I – REPORT
In the Final Report of the Bingo CPI (Parliamentary Commission of Inquiry), Senator Garibaldi Alves Filho suggests, among other measures, the presentation of a bill regulating the operation of bingo in the country.
 
II – ANALYSIS
 
II.1 – From the CPI:
The Bingo CPI (Parliamentary Commission of Inquiry) was established following a request initiated by us and signed by twenty-three senators, with the objective of investigating and ascertaining the use of bingo halls for the practice of "money laundering" or concealment of assets, rights, and values, as well as the relationship between these halls and the companies that operate the betting system with organized crime.
Although most of the testimonies gathered by this Parliamentary Commission of Inquiry were not related to the specific event that motivated its creation, the witnesses who addressed the topic made it clear that bingo halls are widely used by organized crime. Federal Prosecutors Ronaldo Meira de Vasconcelos, José Pedro Taques, Celso Três, and Roberto Santos Ferreira, professionals who work daily in defense of the legal order and social interests, as stipulated in Article 127 of the Constitution, reported to this Commission the numerous irregularities detected in bingo halls, as well as their association with organized crime.
Furthermore, there is a large amount of material sent to this Commission, especially complaints from the Public Prosecutor's Office, which highlight this regrettable association between organized crime and gambling, including bingo.
 
II.2 - Constitutional and Legislative Provisions:
According to items I and XX of article 22 of the Federal Constitution (CF), the Union has exclusive legislative power over criminal law and over consortium and lottery systems.
The Brazilian Supreme Federal Court (STF), judging Direct Actions of Unconstitutionality (ADIs) of state laws that created lotteries, decided that these laws were unconstitutional, considering the exclusive competence of the Union to legislate on "raffles" established in item XX of article 22 of the Federal Constitution, which includes "lotteries" and "bingo," according to the understanding of the majority of the Ministers of that Court of Justice.
Therefore, only the Union has the authority to legislate on lotteries and bingo, as well as on criminal law.
Decree-Law No. 3.688, of October 3, 1941 (LCP), establishes, in caput Article 50 states that it is a misdemeanor to establish or operate gambling in a public place or a place accessible to the public.
Decree-Law No. 204, of February 27, 1967, stipulates in its Article 1 that the operation of lotteries constitutes an exclusive public service of the Union, prohibiting the creation of state lotteries and authorizing only the maintenance of state lotteries existing at the time of entry into force of that legal instrument, and even then, limiting the issuance of tickets to the quantities of tickets and series in effect at that time.
Federal law, for a time, made an exception to the illegality of operating bingo games.
Law No. 8.672, of July 6, 1993 (Zico Law), authorized sports management and practice entities to operate bingo games.
Law No. 9.615, of March 24, 1998 (Pelé Law), repealed the Zico Law and also allowed the operation of bingo games throughout the national territory by sports administration and practice entities, directly or through a commercial company, upon accreditation with the Union.
Law No. 9.981, of July 14, 2000 (Maguito Law), revoked, as of December 31, 2001, the articles of the Pelé Law that allowed the operation of bingo, stipulating, however, that authorizations in effect until their expiration date should be respected. The last authorizations expired at the end of 2002.
Therefore, federal legislation authorized the operation of bingo games from 1993 to 2001. Since then, given the repeal of the special laws that authorized this activity, its operation has once again become a criminal offense, according to article 50 of the Law on Criminal Offenses.
Despite the aforementioned federal legislation, which establishes that lottery operation constitutes an exclusive public service of the Union, and which, since 1967, has prohibited the creation of new state lotteries – authorizing only the maintenance of state lotteries existing in 1967, limited to the number of tickets and series in effect at that time – as well as the penal law, which classifies the operation of lotteries without legal authorization as a criminal offense, most of the States of the Federation have created state lotteries and regulated their operation. Regarding games of chance, including bingo, these States have also legislated on the matter, classifying the operation of these games as a lottery modality.
To support this argument, they relied on opinions from renowned jurists, whose understanding is that the lottery is a public service common to the Union and the States. Their thesis is that the Constitution does not grant the Union exclusive competence to legislate or to operate this public service, which implies, considering the residual competence established by § 1 of article 25 of the Constitution, that the States can legislate freely on the matter.
This argument was undermined by the aforementioned decision of the Supreme Federal Court that the power to legislate on lotteries is exclusive to the Federal Government. The Superior Court of Justice has also ruled in the same sense.
Current legislation therefore prohibits the operation of bingo games. Bingo halls that are currently in operation are protected by injunctions granted by the courts.
In general, the following crimes are typically associated with the exploitation of bingo games:
a) crimes against the tax order: conduct listed in article 1 of Law No. 8.137 of 1990; collection of proceeds from the sale of bingo cards or video bingo machines (MEPs); taxation of the prize amount paid to the winner;
b) crime of smuggling (article 334 of the Penal Code): importation of gambling machines;
c) Money laundering crime (Article 1 of Law No. 9.613 of 1998): payment of prizes; investment in one's own establishments;
d) crime of misappropriation of social security funds (article 168-A of the Penal Code): payment of wages "off the books" to employees;
(e) crimes against the organization of labor (articles 197 to 207 of the Penal Code) and irregular stay of foreigners (Law No. 6.815 of 1980).
 
II.3 – From the Report:
Although the rapporteur, in his preliminary report, mentions the global trend of legalizing gambling in international legislation and the gaming market in the Americas, it is necessary to consider Brazil's natural vocation. Given the peculiarities of a country with a continental shelf, with a vocation for tourism – due to its natural beauty and undeniable taste for sports – and not for gambling, with open borders to almost all South American countries, and which is targeted as a transit point for trafficking in various evils, such as drugs, weapons, and even human lives and all types of contraband combated worldwide, it cannot afford to legalize bingo.
With a country of over one hundred and eighty million Brazilians, legalization would generate substantial revenue. If legalization ensured proper oversight, we wouldn't have to investigate the "Getech Case," with its rigged bidding process, which took place under the jurisdiction of one of the country's most respected institutions, the Caixa Econômica Federal (Brazilian Federal Savings Bank). What good is it to collect taxes, generate jobs, and provide entertainment at the expense of permissiveness, tax evasion, sexual exploitation, money laundering from drugs, weapons, corruption, tax evasion, and similar activities, placing it under the cloak of legality, the risk of which is far too high for experimentation?
The actions of the Parliamentary Commission of Inquiry (CPI) must be supported by law, otherwise they will be annulled. This is the case with facts and investigations that have deviated from the specific event that motivated the creation of this CPI, and for this reason, it will be pointless to forward requests for indictment to the Judiciary. Instead, we should send all the material collected by the CPI to the Federal Public Prosecutor's Office, State Public Prosecutor's Offices, Federal Police, and State Police, trusting in their capacity, competence, and legal backing, which the CPI lacks. Society is waiting for and demanding answers in these cases, but the effective punishment of those responsible rests with the Judiciary, in whom I have full and complete confidence.
I cannot help but applaud the removal of gambling from the Law of Criminal Offenses (Decree-Law No. 3.688, of October 3, 1941) to relocate it to the Penal Code, which is where gambling belongs: a crime! As well as the inclusion of the new typical figure in the list of predicate offenses for money laundering (Law 9.613, of March 3, 1998).
Unfortunately, several injunctions have been granted by the Judiciary, ensuring the operation of bingo halls.
A survey conducted by the Senate's Research and Public Opinion Secretariat during the Bingo CPI (Parliamentary Commission of Inquiry) found significant resistance to the legalization of this type of gambling. Only 19,3% of those interviewed declared themselves in favor of legalizing bingo halls and slot machines. If gambling were legalized, only 15,2% said they would frequent betting establishments. 30% of those interviewed said they were indifferent to legalization, and 48,2% were against the idea.
It is necessary to definitively prohibit the exploitation of these games, which have brought so much harm to society. In this regard, three bills are being processed in the Senate, one of them authored by me, PLS 121 of 2004, which would definitively prohibit the exploitation of all forms of bingo games, as well as electronic, electromechanical, or mechanical machines known as slot machines, regardless of their trade names.
We therefore fail to see how this Parliamentary Commission of Inquiry could conclude its work with the presentation of a bill regulating the activity. Such a conclusion contradicts everything that was already known about bingo, confirmed throughout the work of this Commission, including public opinion research.
First, the operation of any form of bingo games, as well as games on electronic, electromechanical or mechanical machines known as "slot machines," must be prohibited throughout the national territory, including the removal of the public service status conferred on the operation of bingo games.
We need to legislate in a way that allows for the annulment of all licenses, permits, concessions, or authorizations for the operation of gambling, directly or indirectly issued by Caixa Econômica Federal, state authorities, the Federal District, or municipalities, and allow Caixa Econômica Federal to unilaterally and immediately terminate existing contracts or revoke the authorizations for the operation of the respective establishments operating bingo games and slot machines.
 
III – VOTE
For all the reasons stated above, we express our rejection of the final report presented by the rapporteur, given the proposal that regulates bingo in the country by law. Therefore, we support the approval of this separate vote with the recommendations it presents, excluding facts unrelated to the specific event that motivated the creation of the CPI, and the acceptance of PLS ​​121 of 2002, authored by me, as a proposal for the CPI.
 
IV – REFERRALS
1) Forward to the competent authorities (Federal Public Prosecutor's Office, State Public Prosecutor's Offices, Federal Police, State Police) all the material collected by the CPI, including that which refers to episodes not related to the specific fact established by request 245 of 2004 that gave rise to the creation of this commission, such as: G-Tech Case, Loterj, Garbage Mafia, Toninho de Campinas Case, Celso Daniel Case, Influence Peddling (Serpro, Cofiex, Banco Prosper), Cuban Dollars, Corruption in the Municipalities of the Interior (CEPEM, Paulo Okamotto, Roberto Teixeira), Francenildo Case. And the material gathered from all the businessmen cited in illicit activities such as the Angolans José Paulo Teixeira Cruz de Figueiredo, Artur José Valente de Oliveira Caio, José Mario Roberto Ventura, and Mr. Roberto Carlos da Silva Kuzweil, Ademirson Ariovaldo Silva. It is further recommended that the investigation of any irregularities be conducted with the utmost rigor, thoroughness, and speed, given their seriousness.
2) Forward to the Supreme Federal Court, the Superior Court of Justice, the State Courts of Justice, as well as the instances of the Federal Justice, a recommendation from this Parliament for the closure of all Bingo Halls and reconsideration of the current injunctions that allow their operation.
 
Senate Bill No. 121 of 2004
 
It prohibits the operation of all forms of bingo games, as well as games on electronic, electromechanical or mechanical machines known as "slot machines", regardless of their trade names, and provides other measures.
 
The National Congress decrees:
 
Art. 1th  The operation of all forms of bingo games, as well as games on electronic, electromechanical or mechanical machines known as "slot machines," is prohibited throughout the national territory.
Single paragraphThe seal referred to in caput This article implies the removal of the public service status previously conferred upon the operation of bingo games.
 
Art. 2th All licenses, permits, concessions, or authorizations for the operation of gambling activities covered by this Law, whether directly or indirectly issued by Caixa Econômica Federal, state authorities, the Federal District, or municipal authorities, are hereby annulled.
 
Art. 3th The Caixa Econômica Federal (Brazilian Federal Savings Bank) must proceed with the unilateral and immediate termination of existing contracts or revoke the authorizations for the operation of the respective establishments operating bingo games and slot machines.
 
Art. 4th  The practice of an act prohibited under the terms of Article 1 subjects the offender to a daily fine of R$ 50.000,00 (fifty thousand reais), without prejudice to the application of applicable criminal measures.
 
Art. 5th  The administrative penalty referred to in Article 4 of this Law shall be imposed by the Ministry of Finance, after the issuance of an infraction notice.
Single paragraphThe Ministry of Finance must send a copy of the infraction notice referred to in caput This article should be forwarded to the Federal Police Department for the adoption of measures within its jurisdiction.
 
Art. 6th  Failure to apply the provisions of this Law subjects the public official who causes it to the penalties of dismissal or termination for just cause, without prejudice to any applicable criminal sanctions.
 
Art. 7th  This Law shall enter into force on the date of its publication.
 
Art. 8th  Articles 2, 3, and 4 of Law No. 9.981, of July 14, 2000, are hereby repealed; Article 59 of Law No. 9.615, of March 24, 1998, and article 17 of Provisional Measure No. 2.216-37, of August 31, 2001.
 
JUSTIFICATION
The Federal Senate has just rejected Provisional Measure No. 168 of 2004, due to a failure to meet the constitutional requirements of relevance and urgency to justify its enactment.
The purpose of this proposal is to resubmit the matter to this House in the form of a bill.
It should be noted that the rule in Article 67 of the Constitution – according to which a rejected matter can only be the subject of a new bill in the same legislative session if proposed by an absolute majority of the members of either House of the National Congress – does not apply in this case, given that the merits of the Provisional Measure were not analyzed by the Senate, which rejected it for failing to meet the requirements of relevance and urgency.
Since the Zico Law (Law No. 8.672, of July 6, 1993) authorized the operation of bingo games, this activity has always been strongly associated with criminal offenses, such as tax evasion and money laundering, among others.
Another negative consequence of authorizing the exploitation of this activity and "slot machines" is the significant increase in the number of compulsive gamblers in Brazil, prone to irresponsible behavior, compromising not only their personal assets but also those of their families to finance their addiction. In extreme cases, compulsive gambling has resulted in suicide attempts by its practitioners.
Despite previous attempts to prohibit this type of gambling, the succession of regulations governing the matter has resulted in legal uncertainty regarding the legality of its operation.
Several injunctions have been granted by the Judiciary, ensuring the operation of bingo halls.
It is necessary to definitively prohibit the exploitation of these games, which have brought so much harm to society, and for this reason we count on our esteemed colleagues to approve this project.
Session Room,
Senator Magno Malta