Zona de Azar Brazil – Brazil: Senators Seek Consensus to Vote on Controversial Proposals

Brazil.- July 30, 2024 www.zonadeazar.com  Senators are already preparing to vote, starting in August, on projects that were not completed in the first half of the year. In addition to priority issues, such as payroll tax relief , state debts, the new Electoral Code and the regulation of Tax Reform , there are other controversial issues on which there has not yet been an agreement, such as the operation of casinos, the use of electronic cigarettes, Navy lands and the budgetary autonomy of the Central Bank.

The House bill authorizing the operation of casinos and bingo halls in Brazil ( Bill 2,234/2022 ) was approved by the Constitution and Justice Committee (CCJ) on June 19. It then received 11 amendments, which require the committee’s opinion before being voted on by the Senate Plenary. The text also legalizes the jogo do bicho (animal gambling) and allows betting on horse races.

The topic is controversial. Supporters of the bill argue that in countries where casinos have been regulated, there have been social and economic benefits. According to the rapporteur, Senator Irajá (PSD-TO), approval of the text could result in investments of R$100 billion, generating around 1.5 million direct and indirect jobs. According to the senator, the potential annual revenue could reach R$22 billion, divided between the states, municipalities and the federal government.

Parliamentarians opposed to the text, in turn, warn of the risk of encouraging gambling addiction and crimes such as money laundering, trafficking and prostitution. The vote on the text was postponed several times in the committee due to lack of consensus.

Rules

The bill creates specific rules for different types of games and imposes limits on commercial establishments that can offer casinos, bingo and animal games. For example, there will be a limit of one casino in each state and in the Federal District, with the exception of São Paulo, which may have up to three casinos, and Minas Gerais, Rio de Janeiro, Amazonas and Pará, which may have up to two each, based on the size of their population or territory.

Bingo halls are limited to one per municipality, but larger cities may have one establishment for every 150,000 inhabitants. The operation of the animal game may be carried out, in each state and in the Federal District, by one legal entity for every 700,000 inhabitants. Betting on horse races may be operated by tourism entities accredited by the Ministry of Agriculture.

The regulation includes the creation of two new taxes: the Gaming and Betting Inspection Fee (Tafija) and the Economic Domain Intervention Contribution levied on the sale of gaming and betting (Cide-Jogos). Of the amount collected, 16% will go to the State Participation Fund, 16% to the Municipal Participation Fund (FPM), 12% to the Brazilian Agency for International Tourism Promotion (Embratur), 10% to actions in the sports area and 10% to the National Culture Fund. The remainder will be used in various areas, including actions to prevent gambling addiction.

Fonte: Agência Senado

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