REGULATION OF GAME BUSINESS IN BRAZIL
Categories: News | Published by: admin 08/02/2018
Brazil is the largest Latin American country occupying the 8th place in terms of GDP in the world. Today, practically all branches of the modern economy are actively developing there. What is happening in the gambling business of Brazil? The answer was found by Bitgambler experts.
HOW IT WAS BEFORE
A complete ban on gambling in the country was introduced in 1941. And it is still in force. But since 1991, there have been active discussions regarding gambling and small changes for gambling activities have nevertheless occurred over the past decades.
In 2001, bingo gambling houses were allowed. Gaming machines and bingo lotto were located there. Tax deductions from them amounted to about 61 million reais ($ 16.2 million) annually. But the resolution was valid only until 2004.
In 2012, poker was recognized as a game of skills and removed from the definition of “gambling”. From this moment on, poker clubs began to open in the country. In 2015, online poker was also legalized and online poker rooms became available to residents.
In addition, state lotteries and horse racing bets are legalized in the country too. The first online lottery opened in 2016.
The issue of legalizing all other types of gambling including online games has been considered in the Brazilian Congress for a long time. We are talking about land and online casinos, bingo, betting, and joogu du bichou.
GAMBLING IN BRAZIL TODAY
By the end of 2018, according to the government forecasts, more than 3 billion reais ($ 800 million) will go to the country’s budget only from the sale of the most popular lottery tickets. In 2017, the lottery received a budget of $ 475 million.
However, according to government experts, the shadow turnover from gambling in the country exceeds 20 billion reais ($ 5.3 billion).
For example, joogu du bichou translated as the game of animals, the most popular national lottery, is illegal. Its annual turnover is estimated at 12 billion reais ($ 3.1 billion)
Gambling sites of online casinos and betting shops, despite their illegal activities in the network, are not blocked. Online sweepstakes and online sports betting on Brazilian national championships are very popular among players.
CHANGES IN GAMBLING LEGISLATION
Supporters of gambling argue that the prohibitions do not work properly in modern realities. Therefore, it is necessary to legalize this industry, begin to control the gambling business, and receive very tangible revenues to the budget from it.
This issue has become particularly acute in recent years, when the state faced a financial crisis.
The public organization Arrecada Brasil, which advocates the legalization of gambling in Brazil, believes that if it was regulated legally, the budget will receive approximately 37 billion reais ($ 10 billion) annually additionally.
Therefore, the parliamentarians were forced to re-start the discussion on the issue of gambling legalization.
In December 2015, the CDEN National Development Committee approved Bill No. 186. It provides for the legalization of the entire gambling industry in the country.
The bill must be approved by the National Congress of Brazil, which consists of two chambers: the upper – the Federal Senate, and the lower – the Chamber of Deputies. After the legislative act is fully adopted by Congress, it will be submitted for final approval by the president. Only after that it will enter into force.
Over the years, the draft of No. 186 law was actively discussed many times in the congress, many amendments were made to it. However, so far it has not found the support of the majority of senators in the upper chamber.
The working version of the bill was divided into two parts: PL186 / 2014 and PL442 / 1991. The first was submitted to the Senate, the second – to the Chamber of Deputies.
PART PL186 / 2014 OF LAW NO. 186 ON THE LEGALIZATION OF GAMBLING
The discussions and amendments to PL186 / 2014 are carried out by the CCF (Commission of the Constitution and Justice and Citizenship) of the Brazilian Federal Senate. Over the years, the commission has made more than 70 changes.
On March 7, 2018, the latest version of PL186 / 2014 was put to the vote by the CCJC. However, once again, the bill was rejected on various grounds:
- the latest edition did not take into account the requirements of the president to create an industry regulatory agency;
- No definitive market research for online gambling;
- the mechanisms for countering money laundering are not well thought out;
- there is no system of fines for market participants for various violations;
- There are no recommendations for the control of VIP-halls in land-based casinos.
Now the bill is awaiting the analysis of other committees and the introduction of regular amendments. After that, it will be submitted to voting in the Senate. But in 2018, there was no consideration of this bill in the schedule of the plenary agenda of the Federal Senate.
PART PL442 / 1991 OF LAW NO. 186 ON LEGALIZATION OF GAMBLING
The second part of the legislative act under the number PL442 / 1991 is the responsibility of the special committee of the deputy corps. Work on it has been going on for 27 years, starting in 1991. Discussions began long before a general law No. 186 was formulated in 2015. This part deals with the legalization of gambling establishments and online games in resort areas related to the tourism industry.
But at the plenary meeting on March 20, 2018, the discussion of this draft law was excluded from the current agenda of the Chamber of Deputies. This means that in 2018, gambling in Brazil will not be legalized.
Brazil is the fifth largest and sixth most populous country in the world, the legalization of gambling will turn it into one of the most profitable regions.
Market experts cannot be 100% sure that next year, the law allowing gambling in Brazil will be approved by Congress. Although, it has already gained the necessary economic strength and support of residents. Congress debates were interrupted because of political reasons: the impeachment of former President Dilma Rousseff and the corruption scandals surrounding current President Michel Temer.
Therefore, work on the legalization of gambling will resume as soon as political tensions subside. Large companies are already taking their first steps in the development of this market. For example, Sheldon Adelson, CEO of Las Vegas Sands (LVS), recently said that after removal of the legal restrictions, he will develop integrated casinos in Brazil. At the meeting with President Michel Temer, he had already discussed the possibility of building objects worth $ 8 billion. So, the gaming industry is preparing for the fact that gambling in Brazil will still be legalized.