Finance Commission approves bingo law

Brazil bill for vote in Congress

Brazil's Congressional Finance and Tax Commission has approved, by a large majority, legislation for Bingos in the country. The Law replaces a project to ban gaming in the country, 5 years after the bingos were closed by Presidential decree.

Until 2000 around 1200 bingos were operated in Brazil under the Zico law with a presumption of legality as there was no law banning the activity. In 2004 President Lula banned bingo in Brazil although many re-opened. However, in August 2006 the Federal Supreme Court ruled bingo operations were illegal and removed the ability to authorize them from the Brazilian states.

Last year the Brazilian Association of Bingo Operators (ABRABIN) said that after gaming legislation is approved there will be some 1,500 bingo operations in Brazil. ABRABIN also said that the new legislation would produce around US$2.9 billion in annual gaming tax, although this figure is thought to be too low by some experts.

Congressman Joao Dado has now presented bingo legislation with major changes that include 'gambling games" instead of "amusement games". The new law also excludes bingos from being operated within 500 metres of religious temples and education centres, and bans access to people less than 18 years of age.

The new gaming tax has been fixed at 15% of GGR in monthly contributions, which the country must use for public health programmes. The new law now has to go through a voting process in the Congressional Constitution and Justice Commission, before it is presented to the Plenary at the national Congress. (E-06.22.09)

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