Gambling operators and business owners around the world have been watching Brazil closely in recent months, as the country moves ever closer to the widespread rollout of a regulated gambling market. This looks to be even closer to becoming a reality, with Brazilian authorities passing a bill to legalise casinos and other forms of gambling.
The Background of the Bill
As we reported back in April, Brazil has been readying itself to launch a regulated gambling market for some time. Gambling in the country has been outlawed since the 1940s, but calls have increased over the years for these laws to be reviewed. The relaxing of restrictions in other LatAm countries likely played a role in encouraging Brazilian authorities to reconsider how the country deals with and regulates gambling.
In 2023, Brazil published legislation to legalise online casinos and sports betting. This was a major step forward, and the country now looks to be pushing ahead even further with a bill that will legalise casinos, bingo games and horseracing betting.
The bill was passed earlier this month by the country’s Justice and Citizenship Commission, passing by 14 votes to 12. This is the second stage of a three-step process. The bill was first passed by the Chamber of Deputies and must now go on to the Senate for further review.
Casinos in Brazil
If the bill to legalise casinos is ultimately enshrined in law, it will allow for casinos in tourist resorts and leisure centres. According to the terms of the bill, these centres are defined as hotels with at least 100 rooms, bars and meeting spaces. In addition, cruise ships and boats with at least 50 rooms will also be permitted to operate casinos.
Brazil is a huge country, with a population of over 205 million. However, there will be strict rules regarding the number of casinos permitted in each Brazilian state. Three casinos will be permitted in Sao Paulo, with two each in Rio Janeiro, Para, Amazonas and Minas Gerais. The remaining states are only permitted one casino each.
Other Forms of Gambling
The bill to legalise casinos also promises to legalise bingo, in card and electronic formats. This means players will be able to visit bingo halls and go online to enjoy live bingo games.
Each Brazilian municipality will be allowed one bingo hall. This rule changes slightly for bigger cities, where one hall is allowed for every 150,000 residents. New bingo hall licenses will last for 25 years.
Dedicated tourism organisations will be in charge of operating horseracing betting activity. These bodies will also be permitted to manage bingo games if they are hosted in horseracing venues.
New Tax Rules
If the bill to legalise casinos passes, new gambling tax rules are expected to come into effect. First, a Gaming and Betting Inspection Fee will be established, which is to be paid every three months. This will amount to a regular fee of approximately $109,000 for casinos, $54,500 for online casino platforms and $3,600 for bingo halls.
In addition, the bill will establish a 17% tax rate on gross revenue as well as a 20% income tax on all winnings amounting to more than $1,817.75.
Player Protection
Finally, the bill to legalise casinos will also introduce new player protection protocols. A self-exclusion initiative will be established for land-based players. Titled Renapro, all operators must check whether players are named on this register before allowing them to play.
New laws will also be passed concerning unlicensed games and game tampering. Involvement in unlicensed games can incur a four-year prison sentence, while game tampering can incur a seven-year sentence. These sentences can be doubled if the offences involve vulnerable players, such as underage players or elderly players.
Conclusion
Brazil is rapidly moving towards a regulated gambling market. If the bill to legalise casinos passes the final legislative stage, we can expect to see an explosion of gambling activity in the country. Brazil, and the wider LatAm region, is certainly an area operators should be keeping an eye on.
