The state owned development bank of Brazil, Banco Nacional, has announced that the law provisionally drafted by Member of Parliament Vicentinho Valdes in 2003 and approved by the Commission for Economic Development, Industry and Commerce, will be subject to a Congressional vote. Valdes proposed legislation that would authorise six gaming centres – two in each of the regions of Norte, Nordeste and Medio Oeste.

Gaming machines in the form of video lottery terminals would be installed only in casinos, in addition to bingos which could be installed in any city in accordance with municipal regulations. The bingo association of Brazil (ABRABIN) estimates that the measure would create up to 220,000 jobs and gaming tax revenue of 5.6 million reales (US$2.5 million) a year.

Olavo da Silveria, president of ABRABIN, commented, “Brazil is at odds with the world, but there now seems to be a will to change this situation. The law does not recognise the rotation of betting, which is a characteristic of this business. This impedes bingos from functioning as they should, and I believe creates the myth that the industry is predisposed to money laundering activity."

According to the Valdes proposal, 15% of gross revenue would be for the Government and the States to assign to public health programmes. Gaming operations would be under the jurisdiction of the Treasury, which would have the power to issue penalties in the case of infractions of the law. (E-04.07.09)

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