Brazil
later the act was declared unconstitutional by the Brazilian Senate. In 2007 the Supreme Court declared that all licences handed out by local governments were void.
However, the majority of bingo halls have been able to remain open under stays of closure granted to them by local courts and have remained open in a legal limbo while around 100,000 gambling machines in Brazil remains operational. At the same time illegal bingo halls continue to thrive.
Since 2014, a number of attempts have been made to regulate the industry but none have succeeded. Bingo owners, who had gone bankrupt, have been demanding that the government provide them with compensation, and the Brazilian Association of Bingos has made a number of formal requests in court on behalf of the owners demanding that they receive compensation.
Bingo owners, who had gone
bankrupt, have been demanding that the government provide
them with compensation, and the Brazilian Association of
Bingos has made a number of formal requests in court.
The fight for changes to Brazil’s gaming laws has not, however, been limited to bingo hall owners and a number of Congressmen want to see major changes to Brazil’s gaming landscape. Proposals to allow bingo halls are often part of much wider legislation which seek to open up the gaming market. Since 2004, more than ten bills have been out forward some of which would open the market while others seek to tighten the restriction on bingo halls and gambling altogether.
Those in favour of liberalising the market claim that the government is losing out on huge amounts of tax revenue while illegal gaming continues to grow unchecked. However the topic is so highly charged that there has been a marked unwillingness to tackle the issue head on.
Despite these setbacks the outlook looked positive in November, 2009 when legislators who were allied with the new government of Dilma Vana Rousseff put forward proposals that were quite similar to the suspended legislation of 2004. Under the new bill, slot machines and bingo games would have to return 70 per cent of the stake back to the player and 14 per cent of gaming tax revenue would be destined for the health sector. It was estimated that a more closely regulated industry would generate US$4bn in gaming tax revenue per year and money generated from the bingo halls and slot
4 2
parlors would be designated to fight poverty and improve the health sector. It was believed that Rousseff was in support of such measures.
New legislation was then put forward in December. But the law was ultimately rejected, by a majority of 212 to 144, under accusations that the industry had illegally sought influence among members of the Lower House and claims that bingos in Brazil were used for money laundering and only added to the problems of organised crime.
Matters have not been helped by the fact that the issue still remains highly charged. Although
Ramos, who was implicated in the scandal in 2004, was never convicted police continued to investigate him. In 2012 it was revealed that via wire taps police had found that Ramos had remained connected to politicians and construction companies, some of which had been granted state contracts to build facilities ahead of the upcoming 2016 Olympics.
As a result of this investigation, the Brazilian High Court blocked the assets of Ramos and another six of his business associates. Meanwhile, a Senate committee was formed to look into the infiltration of criminal gangs into both houses of Congress.
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