The Senate’s Constitution and Justice Committee (CCJ) approved on Wednesday (19/06) the proposal (PL 2234/22) that legalizes gambling in Brazil, such as bingo, Jogo do Bicho, and casinos. The project creates rules for the exploration and mechanisms for monitoring and controlling games. It also establishes the taxation of betting houses and prizes, in addition to a series of rights for players.
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Approved by the Chamber
The proposal had been approved by the Chamber in 2022 and faced obstacles during passage through the Senate. Resistance from conservative parliamentarians and social movements led to a series of postponements in the discussion of the text.
End of a Ban of Almost 80 Years
The text puts an end to a prohibition, provided for in a 1946 law, on the exploitation of games of chance throughout the national territory. It also revokes sections of the Criminal Offenses Law, which establishes punishments for the practices.
Rules
The operation of gambling, however, must follow a series of criteria. For example, minimum amounts of company capital and proof of the lawful origin of the resources will be required. Only companies based in Brazil will be able to operate the games, which will be permitted in previously authorized locations.
Who Can Play
The project establishes that only adults will be able to play. Minors will also not be able to access accredited addresses for offering games, which cannot have gaming machines installed abroad.
Taxation
Player winnings (the value of the prizes minus betting costs in 24 hours) will only be taxed if they add up to or exceed R$10,000. The charge will be made by Income Tax, with a rate of 20% on the prize. The tax will be withheld directly by the bookmaker.
Companies accredited to operate gambling in Brazil will have to pay an inspection fee, a quarterly charge, and different amounts for each type of game offered.
Oversight
The proposal that liberalizes gambling establishes a series of rules for transparency and supervision of betting. All financial movements of bookmakers will have to be registered in the Audit and Control System (SAC), which can be accessed in real-time by the Ministry of Finance. Companies accredited for betting will also have to present half-yearly balance sheets of operations. At the end of each year, they will also need to undergo an audit.
Crimes
In addition to administrative punishments, the project also makes some practices related to betting a crime. According to the text, anyone who exploits gambling without a license could be imprisoned for up to four years. Betting fraud can also lead to jail, with a sentence of up to seven years.
Analysis:
The recent approval by the Senate’s Constitution and Justice Committee (CCJ) of the proposal that liberalizes gambling in Brazil represents a significant change in the country’s entertainment policy and economy, with substantial implications for public security. The regulation of gambling represents a strategy to formalize and monitor the sector, which traditionally operates underground.
Historically, the ban on gambling in Brazil was a response to associated risks, including exploitation by criminal organizations and the occurrence of illicit activities, such as money laundering and fraud. In Rio de Janeiro, for example, the criminal factions that exploit gambling are involved in a wide range of illicit activities that go beyond the simple control of clandestine betting. These organizations use the income generated by Jogo do Bicho to finance other serious crimes, such as drug trafficking, corruption of public officials, money laundering, and even homicides. Violent control of the territories where they operate, often resulting in armed clashes, is a striking characteristic of these factions.
