Brazils endeavor to update its gaming regulations encountered a significant obstacle yesterday when a Senate panel voted down legislation that would have permitted various types of wagering.
Despite considerable enthusiasm from both domestic and global gaming entities, the legislation, designated as Senate Bill 186/2014, was defeated by a tally of 13 to 2 within the Constitution and Justice Committee. This represents a substantial setback for advocates who contend that legalization would yield significant tax income, generate employment opportunities, and aid in curbing illicit gambling activities.
The legislative proposal sought to authorize prevalent forms of gambling, including bingo, internet-based sports wagering, and casinos. It outlined a framework wherein the Brazilian federal government would possess the ultimate power to issue licenses for the operation of these games. Furthermore, the bill aimed to establish a specialized federal entity to supervise the regulation and licensing procedures.
Although the bill had received prior approval, it was returned to the committee for re-evaluation after Senator Magno Malta voiced apprehensions regarding its constitutionality in 2016.
Senator Ciro Nogueira, one of the bill’s drafters, conveyed his dissatisfaction with the result, highlighting the potential detrimental ramifications of not regulating the sector, particularly concerning sports betting and its influence on Brazilian soccer. He emphasized that the current absence of regulation exposes Brazil to the risks of money laundering and other unlawful activities frequently linked to unregulated gambling.
Congressman Benedito de Lira concurs, noting that subterranean wagering is a genuine dilemma that spawns numerous other difficulties. Government officials are cognizant of its occurrence and are striving to legitimize it, transforming it into a lawful source of employment and fiscal income.
Currently, legislation designated PL 442/1991, intended to govern the gaming sector in Brazil, remains stalled in the Chamber of Deputies, awaiting a comprehensive vote. This legislation represents the second endeavor to regulate the industry. Despite efforts to expedite its passage in 2016, it languishes in legislative limbo.
Should it garner sufficient votes, it will proceed to the Federal Senate. If the Senate proposes amendments, it will revert to the Chamber of Deputies for final ratification.
