iGaming Business magazine iGB 111 July/Aug | Page 135

Regulation
BRAZIL:
LEGISLATIVE UPDATE
Leading Brazilian gaming lawyer Priscila Cortez De Carvalho updates on the bills in play
in LatAm’s largest igaming market, including the Chambers of Deputies Bill which would
regulate and license igaming
1. Explanation of legislative bill procedures
Brazil’s Congress is made up of two houses: the Federal Senate (with
81 senators) and the Chamber of Deputies (with 513 deputies).
Ordinary bills must be approved by both houses; bills are subject to
a round of discussion, and voting can only take place if an absolute
majority of deputies and senators are present. Special Committees
assist both houses and bills are evaluated by the Committee on
Constitution and Justice, and then by another committee relevant to
the bill’s subject matter. Once this is done, each committee releases
its findings and the bill is put to a vote.
A series of checks and balances then follow, with the house
that proposed the bill sending it to the other for approval.
This house acts as a kind of “proofreading house”: it analyses the
bill and votes on whether or not to approve it. If the legislative
bill is rejected in the proofreading house, it is shelved; if the bill is
amended, it goes back to the initiating house for its members to
approve the amendments; and if the bill is accepted in its entirety,
it goes to the president for endorsement or rejection.
2. Brief on legislative bills (PL186/14 and PL442/91)
It’s been decades since gaming regulation was last discussed in
Brazil’s Congress. Since 1941, when gambling was made illegal
by presidential decree, the gaming business has been struggling
to become regulated. The blanket ban was temporarily lifted
in 1993 when the Zico Law, which permitted electronic gaming
machines to be used in the country, was passed. This was
strengthened by the Pelé Law in 1998, which enabled bingo halls to
install up to 400 slot machines on their premises. Two years later,
though, another law was passed that effectively ended the licensing
of new bingo halls and, therefore, any slot machines that might have
been housed there.
Currently, the subject is being debated in both houses of Brazil’s
Congress and is represented on two different bills, numbers
PL186/14 and PL442/91.
2.1. Senate Bill (186/2014)
Given there have been more than 70 amendments since its first
draft, this bill has altered significantly over the years.
From a vague, generic and decentralised accreditation and
inspection power given to Brazil’s states and its Federal District in
Priscila Cortez De Carvalho is a partner and
coordinator of the corporate civil law team
at Cortez de Carvalho & Furegate Law Firm.
She graduated from the PUC-SP and holds
a post-graduate qualification from FGV (GVLaw)
in corporate contracts and complex negotiations.
Brasilia, the bill passed through a version that accorded exclusive
control of all types of electronic bets to the state-owned bank Caixa
Economica Federal.
In its latest version, reported by Senator Benedito de Lira from
the Constitution, Justice and Citizenship Commission (CCJ),
the bill makes the following provisions:
1. 
The proposal defines and allows the exploitation of seven
types of games, including (i) jogo do bicho; (ii) video bingo
and video games, both online and land-based; (iii) bingo;
(iv) those games practised in casinos; (v) sports and non-
sports bets, both online and land-based; (vi) online casino.
2. 
The exploitation of games of chance through the internet
is prohibited, except for those explicitly authorised by
federal law.
3. It is exclusively incumbent upon the federal government
to regulate the activities of all types of games of chance;
and to accredit those interested in their exploitation.
4. 
It is incumbent upon the states and the federal district
to accredit those interested in the exploitation of bingo
games within their respective territories, and concurrently
with the federal government, to supervise the services,
implementation and operation of bingo halls.
5. 
In order to license video bingo, video game machines
and online electronic systems that offer games of chance,
independent specialised laboratories must issue a technical
opinion accredited by the competent federal body.
These laboratories must be internationally recognised
and have documented experience of previous services to
other countries.
6. 
It is prohibited to install video bingo, video game and online
game machines outside the premises of the respective
accredited establishment.
iGamingBusiness | Issue 111 | July/August 2018
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