Last week, the Commission for Economic Development, Industry and Commerce approved legislation for the operation of bingos and casinos in Brazil. Representative Vicentinho Alves' legislation project limits casino operation to the north and central western regions of the country, excludes people with gambling problems and sets up strong penalties for those breaking the gaming law.

The Alves proposal is based on three previous pieces of gaming legislation, including the ones called Zico and Pele, which sought to licence gaming to support sports in the country. The new law authorizes the operation of slot machines as long as they are installed in casinos and bingos. The full legislation text has still to be approved by the respective commissions for Finance & Taxation, Constitution & Justice and Interior before it is sent to the Plenary of the Brazilian Congress.

The proposal imposes severe restrictions on the vulnerable, including minors and gambling addicts, who will be logged in a register created specially for this purpose. Neither casinos nor bingos will be located within 500 metres of education centres, churches or temples. Bingos will have a minimum of 500 seated players and return in prize money a minimum of 70% of card sales. Casinos will be able to operate roulette and cards games.

The legislation has established a maximum of 6 casinos in the appointed regions with 10-year licences, which are renewable for a futher 10 years. The casino maximum can be increased after five years if States request licences, and the Federal Government would approve licensing additional casinos for the regions with the lowest economy growth index. Licensing will be through a public tender and the winning companies will not be able to receive any tax breaks or public financial support. Gaming tax has been fixed at 15% on GGR.

According to Alves, "Casino and bingo legislation will generate economic and social activity in the most needed regions in the country," as opposition on the grounds organized crime and money laundering stories was out of touch with reality. Alves concluded: "It's not right to say that legalized gaming lives side by side with organized crime. If that were the case, countries like USA and Germany, for instance, would be promoters of organized crime".

The Brazilian Association of Bingo Operators (ABRABIN) said that following gaming legislation about 1,500 bingo operations in Brazil will open, as there were more than 1,200 operating in 2003 before the bingos were closed by President Lula. It added that the new legislation would produce around US$2.9 billion in gaming tax but Alves' optimism was higher and he said that gaming tax receipts could reach some US$5 billion. (E-09.09.08)

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