On Thursday, 8 August, the Senate of Brazil will begin hearings on Bill 2,234/22, which carries the federal mandate to modernise Brazil’s land-based gambling laws.
The Bill will be presented by Senator Irajá Abreu (PSD-TO), as the chief sponsor, calling on Senators to back the project to modernise Brazil’s land-based gambling laws pertaining to casinos, bingos, horseracing, and the sale of jogo do bicho (instant win games).
The Senate’s debate of Bill 2,234/22 has been awaited for over two years since Abreu took over the project from former rapporteur Renato Vianna (MDB-SC).
Headline measures call for the government to annul the 1946 Decree Law of President Gaspar Dutra, which banned casinos from operating in Brazil’s municipalities and districts.
The Bill calls for Brazilian states to be granted ‘municipal autonomy’ to operate gambling venues, dependent on meeting legal criteria in relation to the population and socio-demographics of the district, and the size, location, and type of gambling venue.
For casinos, provisions will allow the populous states of Rio de Janeiro, Minas Gerais, Paraná, and Amazonas to host two casino resorts, while São Paulo will be allowed three properties within its state borders.
A framework reviewed by the Senate’s Justice and Citizenship Commission (CCJ) has applied a provisional tax charge of 17% on gross income generated from games and wagers at land-based gambling venues.
Customers will incur a 20% tax on all prizes and winnings above R$10,000 (€1,600). The framework will allow states to administer taxes generated from land-based gambling to municipal projects promoting tourism, sports, culture, and various social initiatives.
Minister of Finance, Fernando Haddad, has backed the project to modernise gambling laws, stating that Brazil should follow other OECD and G20 nations, 90% of which have regulated their gambling markets.
However, a tough revision is expected of Bill 2,234/22 modalities, many of which were drafted a decade ago by rapporteur Renato Vianna.
Bill No. 2,234/2022’s progress will be carried separately from Brazil’s imminent launch of a federal sports betting marketplace (Bill No. 3,626/2023), under the approved Bets framework, a mandate overseen by the Ministry of Finance and the Secretariat of Betting and Prizes (SPA).
This week, the SPA concluded its technical modalities to authorise the licensing process of the Bets market, which is scheduled to launch on 1 January 2025.