Brazil gambling legislation and licensing

Gambling in Brazil

As of 2017, gambling in Brazil is banned. The government has been discussing the laws about gambling legislation. Today's gambling market in Brazil is already one of the largest in Latin America. Brazilian Legal Gaming Institute (Instituto Brasileiro Jogo Legal, IJL) is a non-profit governmental organisation that researches gambling in the country. According to the statistics provided by the Institute, the revenue from the gambling market reaches 6.4 billion USD each year. All of these cashflows are illegal.

Casinos in Brazil

Both land-based and web-based casinos are banned in Brazil. About 200,000 players travel to neighbouring Uruguay on a regular basis. This is the way Brazil misses out on an estimated 2 billion USD each year from possible taxes that could have ended up in the state budget. This is a most unfortunate mist opportunity to generate tax revenue, jobs and sales both directly from gambling and all those that might have flowed from related support industries such as construction and maintenance. Online casinos in Brazil are illegal, however, internet users have been able to find access to the best foreign platforms. International operators provide the interface in many languages for the convenience of their clients.

Gambling Games in Brazil

Below is a list of the most popular slots in Brazil: Top Cat, Twin Spin, Motörhead, Count Duckula and Winstar. Top Cat is a five-reel slot by Blueprint Gaming. The slot gives you a chance to play a bonus game with a progressive jackpot, take advantage of the Wild reels, re-spins and five interactive bonus rounds. Twin Spin is a five-reel slot by NetEnt that features 243 ways to produce winning combinations. Several reels in a row may be identical. Motörhead is a slot by NetEnt that comes with 76 paylines and 5 reels that contain various numbers of fields within them. Some of the symbols may turn into others to form combinations. The slot features an opportunity to get some symbols that land in stacks and earn a series of free spins. Count Duckula is a slot by Blueprint Gaming that comes with 5 reels and 20 paylines. Forty lines become available in the bonus game. You can win the jackpot, activate 4 random bonuses, and open 5 bonus rounds. Winstar is a five-reel slot by NetEnt that comes with 10 paylines. You have a chance to hit a jackpot which is the size of your bet per line multiplied by x5,000. Some symbols may turn into other pictures to complement your combinations.

Gambling Legislation

As of 2017, gambling in Brazil is mentioned only in the Law of Misdemeanors, Decree Law No. 3688/1941. Gambling games are completely outlawed. Participation in gambling or the organisation of gambling activities are punishable by 3 months to 1 year of confinement. The players can also pay a huge fine. All belongings of land-based casinos get impounded. The law mentioned above was passed back in 1941 and has not undergone any changes since. Brazil does not differentiate between land-based and online casinos — both types are illegal. The law prohibits any access to gambling (online inclusive). However, the attitude towards the gambling industry has eased somewhat over the past decade. The attitude towards poker became more lenient in Brazil, for example. Starting in 2014, the government has had an active discussion on Senate Bill No. 186/2014. This bill will legalise some private operators of bingo, sports betting and casino games. The second bill is House Bill No. 442/1991. This bill pursues similar goals. One of these bills has to be approved. The bill is expected to take effect by the end of 2017.

Gaming regulators in Brazil

Depending on which act will be passed, the regulator will be either the Federal Savings Bank (Caixa Econômica Federal, CEF) or the new regulating agency. At the present time the bank deals with lotteries and issues permits for lottery operators. Both of these bills outline that the government will be granting concessions to anyone who is willing to run gambling operations. In addition to the above: Pursuant to Senate Bill No. 186/2014, the Minister of Finance determines which agencies will be licensing and inspecting the platforms and the Pursuant to House Bill No. 442/199, the state will be issuing licenses for state lotteries and animal game lotteries (Jogo do Bicho).  Municipalities will be licensing and inspecting bingo games played in their territories. Jogo do Bicho is a lottery where bets are made on animals that represent numbers. For example, one is an oyster, two is an eagle, and twenty five is a cow. Paraíba is the only province where this game is allowed. In Paraíba this game is regulated by Lottery of Paraíba (LOTEP), which issues licenses to lottery agents. The provincial capital, for example, has as many as 15 licensed establishments for playing this game. All of them pay a monthly tax, whose amount varies depending on the size of the city. João Pessoa, the central city in the province, collects 6,000 R$ (a little over 1,900 USD) from each facility.

Gambling Licences

Pursuant to Senate Bill No. 186/2014, the licenses will be issued based on the results of the tender. House Bill No. 442/1991 outlines that after this tender the state will be granting concessions for casinos and national lotteries. Both of the bills require the operator to have a land-based office in Brazil. The company must provide proof of its solvency: technical assessment of its equipment, confirmation of the company's creditworthiness and payment of all taxes.

Development of the Gambling Market in Brazil

While the government keeps arguing about which law to pass, major foreign companies have already started applying for permits to build land-based casinos. In April 2017 President of the State Department of Economic Development of Minas Gerais Province said during an interview that three large companies have already expressed their willingness to build a casino hotel in their territory. Two firms are supposedly from Spain and the third one is from the US. In May of this year the famous casino magnate Sheldon Adelson met with the mayor of Rio De Janeiro. The subject of the meeting was the idea to build an 8 billion dollar complex. A new casino is most likely to be a part of the tourist complex. As far as online gambling is concerned, the government has introduced some innovations in this area as well. In July 2017 one of the Senators proposed to prohibit Brazilians from using credit or debit cards to make payments in online casinos. This is the way the government is trying to lower the risk of spending large amounts of money by the players on gambling. It is a known fact that today Brazilians are spending 951 million USD on foreign websites each year. The introduction of gaming legislation will open up a large gambling market for Brazil. The biggest country in South America is capable of becoming one of the most powerful and most rapidly developing markets. Proceeds from the gambling industry into Brazil's budget could become a serious source of profits. 

Your review