Roussef calls for stronger regulations
Brazil is one step closer to becoming a legal gaming jurisdiction. The House has amended a casino bill already approved by the Senate. Though President Dilma Roussef called for “more comprehensive regulation” and “adequate levels of fraud control and tax evasion,” in general she supports the plan.
The amended legislation, which now heads back to the House for a full vote, provides for up to 35 land-based casinos and bingo halls as well as online gaming. No state could have more than three casinos, and mega-resorts may be concentrated in metropolitan areas like Rio de Janeiro and Sao Paolo.
The bill calls for 30-year license terms and a 20 percent tax on internet gaming revenues. The government estimates gaming would generate $4.15 billion a year in taxes, and about $40 billion in gaming revenue.
Todd Eilers of Eilers Research has said that 25 casinos with an average of 1,000 slot machines each would mean 25,000 Class III gaming devices in the country. About 195,000 Class II devices may be added in new bingo halls.
Roussef and other lawmakers are motivated by a cratering economy in Brazil. Last year the country recently reported its worst economic growth performance in more than 20 years. A casino industry with a 30 percent tax rate could generate $5.9 billion a year in new taxes for the government.
Casino gambling was banned in Brazil in 1946. If the current bill passes, the first casinos are likely to open in 2019.
