At opposite ends of the earth and with national characteristics that could be described as being as different as chalk and cheese, Brazil and Russia have recently made opposing legal decisions on gaming issues. Oddly enough, it is the land of warmth and carnival that has sent down an austere ruling from the Superior Tribunal Federal (STF), and the land of biting winters and stoicism where the Supreme Court has loosened proposed gambling legislation.

The STF decision in Brazil has made bingo operations throughout the country virtually illegal. Last week the ability to authorise these operations was removed from the Brazilian states, and there is no federal gaming law. Now the only recourse open to these businesses is to lodge appeals through the courts. Bingo was operated under the Zico Law until 2000, and under a presumption of legality as there is no law banning the activity.

In February 2004 President Luiz Inacio Lula da Silva signed a temporary measure banning bingo in Brazil but by May that year things had returned to the prior situation. Bingo directly employs around 120,000 people, and annual revenue from the industry is some US$463.6 million. Whilst legislators maintain that without federal law bingos cannot operate, many operators are pushing for Brazil to legislate for efficient and transparent gaming regulations.

In Russia the Moscow City Duma and the local United Russia party have been attempting to remove many of the slot machine operations at present located all over the city in cafes, markets, transport terminals and stores. Recently the Supreme Court declared some of the clauses in the Moscow law to be illegal and under Russian law gaming machines can be sited in virtually any public place. This ruling is an obstacle to the Moscow Duma, but it promises to continue the fight to regulate slot machines and remove them from the streets.

The large casino companies as well as many local authorities in Russia are keen for consolidation in the gaming industry. Less competition and easier collection of taxes are strong motivations, and a properly regulated industry would provide better protection for children and the vulnerable. Later this year the Russian parliament is expected to consider a gambling bill, which will doubtless bring out in force both the anti gambling lobbies and gambling proponents.

The gaming industries in Brazil and Russia are awaiting definitive laws to regulate gambling and the sooner legislators settle the issue the better for everyone concerned. Operating in a legal limbo may bring short-term advantages to a few but does nothing to enhance long-term prosperity in terms of permanent employment and gambling tax revenue. (E-08.16.06)

© Copyright 2006 CasinoCompendium



>>> return to archives
>>> return to frontpage