Delay in Legalizing Casinos and Bingo Halls in Brazil
Let's dive into the heated gambling debate as Sigma World reports!
With vacating senators and President Luiz Inácio Lula da Silva scheduled to return on August 1, the controversial gambling legalization document is slated for a revisit. Skepticism looms large, as evangelical groups within the Senate voice concerns over potential social issues such as an increase in gambling addiction.
Featuring a progressive tax and fee structure, the proposal puts forth two main types of collection for operators: a $100,000 quarterly fee for casinos and approximately $3,700 for bingo halls, along with a 17% gross revenue tax. Moreover, winnings above $1,700 are taxed at 20%.
Casinos would have the green light to operate in tourist centers, entertainment complexes, resorts, hotels with at least 100 rooms, and cruise ships with 50 cabins. States or federal districts can host only one main casino, with a few exceptions like São Paulo, which could host up to three.
Bingo halls, on the other hand, can be opened in every municipality, with multiple halls allowed in large cities based on a 150,000-resident ratio. Licenses are valid for 25 years and can be renewed.
The bill establishes a one horse racing organizer per 700,000-resident ratio, with accredited tour operators allowed to accept bets on races and organize bingo games.
Besides, mechanisms to safeguard land-based operator clients and penalties for non-compliance are integral parts of the new bill.
Also noteworthy, in December 2021, President Luiz Inácio Lula da Silva signed a bill legalizing sports betting and online casino games.
Behind the Scenes:This newly unveiled legislation forms part of a broader context:
- Key Developments: The proposed laws, PL 2,234/2022, aim to legalize land-based casinos, integrated resorts, and bingo halls, with online betting legalized in 2023, market to launch January 1, 2024.
- Economic Potential: The proposed measures project annual tax revenue of BRL 22 billion from land-based casinos alone and aim to double tourist numbers to 12 million.
- Tax Structure: Operators face a 12% GGR tax and players a 15% income tax on winnings over BRL 2,824.
- Regulation: Licensing and oversight are in the pipeline with 13 initiatives planned through 2026.
- Location Restrictions: Restrictions apply for both land-based and online operations. Stricter advertising guidelines will be enforced.
A Cautious Gamble:Religious opposition and addiction risks are recurring concerns among critics. Meanwhile, efforts to protect consumers through mandatory CPF monitoring are underway.
- In the gambling-trends discourse, garnering attention is the gambling legalization document, set for reconsideration as Sigma World reports, with President Luiz Inácio Lula da Silva returning on August 1.
- The proposal outlines a progressive tax and fee structure for casinos and bingo halls, including a $100,000 quarterly fee for casinos, a 17% gross revenue tax, and a 20% tax on winnings above $1,700.
- The mechanisms established in the bill aim to safeguard land-based casino-and-gambling operator clients and penalize non-compliance, while regulating location restrictions for both land-based and online operations.
- In December 2021, Paulo (President Luiz Inácio Lula da Silva) signed a bill legalizing sports betting and online casino games, which forms part of a broader context as the proposed laws target legalizing land-based casinos and bingo halls, with online betting expected to follow in 2023, slated for a market launch on January 1, 2024.
