Brazil’s Justice and Citizenship Commission (CCJ) has taken a significant step by approving a bill that legalizes casinos, bingo, jogo de bicho, and horserace betting. The bill, known as PL 2,234/2022, passed with 14 votes in favor and 12 against on June 19. Having been under consideration since 2022, it now advances to the Senate plenary for further voting, following its prior approval by Brazil’s chamber of deputies.
A Great Opportunity for Brazil
During the CCJ meeting, Senator Irajá highlighted the potential benefits of regulating betting and gaming in Brazil. He emphasized that this move represents a significant opportunity for the country, promising job creation, increased income, and enhanced tax revenues, which could be redirected toward essential sectors such as health, education, social services, and infrastructure. “We can no longer lose this great opportunity that other competing countries have already understood and is seen to generate jobs, income, and taxes, which will obviously be reversed into benefits for the Brazilian people in the most essential areas,” Irajá stated.
Regulations and Taxes
The bill sets forth specific regulations for various forms of gambling, including casinos, betting machines, bingo, and animal racing. It also introduces two new types of taxes:
- Gaming and Betting Inspection Fee (Tafija): Paid quarterly, Tafija amounts to R$600,000 for casinos, R$300,000 for online gaming locations, and R$20,000 for bingo halls, Jogo de Bicho operators, and tourism companies.
- Economic Intervention Contribution (Cide-Jogos): This tax is levied on the marketing of games and betting. The Cide-Jogos tax rate is set at 17% of gross revenue, with prizes over R$10,000 subject to a 20% income tax.
Casino Operations
Should the bill become law, casinos would be permitted in tourist centers or integrated leisure complexes, such as resorts and hotels with bars, meeting spaces, and a minimum of 100 rooms. Additionally, casinos could operate on boats and ships with at least 50 rooms, given certain river length parameters. There would be a limit of one casino per state and the Federal District, with São Paulo allowed up to three casinos and Minas Gerais, Rio de Janeiro, Amazonas, and Pará up to two each. Each casino would be required to have a minimum paid-up share capital of R$100 million.
Bingo and Racing
The legislation also covers the legalization of bingo in card, electronic, and video formats. Each municipality could have one bingo house, with larger cities allowed one per 150,000 inhabitants. Licensed bingo houses could operate for 25 years, subject to renewal, and would need to provide proof of a minimum paid-up share capital of R$10 million. For animal racing, the bill allows one legal racing entity per 700,000 inhabitants, except for Roraima, which would have a jogo do bicho operator due to its lower population.
