Gambling Voted to be Legalized in Brazil

Brazil was known to have a wide reaching ban on gambling since 1946. However, in a landmark decision on the 23rd of February, 2022, the Brazilian deputies voted in favour of the bill seeking to legalize and bring various forms of gambling in the country, both online and land-based.

The passing of the bill will bring various types of gambling operations such as, casino, online gaming, horse racing, slot machines, bingo and jogo de bicho to Brazil. Casinos can now be established in each of Brazil’s 26 states, in the form of integrated resorts.

It is reported that the actualization of the bill could see the state of São Paulo have up to three casinos, while Rio de Janeiro, Minas Gerais and Bahia could have up to 2 casinos each. All other states could have one integrated resort each. To obtain an operating license, intended operators will go through a tender process, where the highest bid will obtain the licence.

What Will be Obtainable Under the Bill

To obtain the operating license under the bill, the casino operators must pay a license fee of BRL$600,000 (N48,582,930.28m) per licensed establishment. Online gaming operators will also pay a BRL$600,000 fee for each licensed area. The Bingo operators will have to pay a fee of BRL$20,000 (N1,619,557.14m) per establishment while the jogo de bicho operators will also pay a fee of BRL$20,000, but for every quarter, per licensed entity. No operator will receive more than one license in the same state and not more than 5 in the whole country.

Licensed online gambling would be permitted but all unlicensed foreign websites would be blocked, and servers for locally licensed igaming operators must be located in Brazil. Online games of chance would also be permitted; with both the federal government and the states permitted to offer licenses.

The creation of SINAJ, a gambling supervisory authority in Brazil that will consist of a federal registry, a supervisory body and betting agents will be allowed. A service that would identify and block problem gamblers, titled National Register of the Prohibited (RENAPRO), will also be established and gambling on credit will be prohibited. Tax on winnings will stand at 15%.

 

The bill is set to go to the Senate, for a ratification vote and if approved, the President must then ratify it before it is passed into law. If the President, who has the power to do so, decides to veto the bill, the Senate may override the veto. Scroll Up

 

Reference: www.igamingbusiness.com

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