At the moment, there is no legal regulation of the gambling entertainment industry in the Brazilian legislative framework. The main condition is that all gambling platforms must comply with generally accepted licensing standards, depending on the type of services provided. Only states have the right to own federal lotteries.
Caixa is one of the largest Brazilian banks that manages the national lottery. Its activities are regulated by a decree that was issued back in 1961. This order abolished the licensing of private lotteries. In Brazil, permits are issued in the form of a federal government concession.
To date, more than 13,000 lottery establishments and gambling platforms have been licensed by Caixa. In addition to the licensing procedure, this body also deals with the release of many different lotteries. In order to destroy the monopoly system, the possibility of LOTEX privatization is being considered.
The legislative framework
To date, Brazilian law has adopted a law on misdemeanors called the Law of Misdemeanours, Decree Law No. 3688/1941″. Unfortunately, this is the only legal act that regulates the gambling entertainment industry in this country.
Gambling in Brazil is still prohibited. Individuals who choose to engage in this prohibited activity decide to receive a prison sentence as well as a hefty fine. Land-based casinos that have been convicted of illegal activities will have all their property confiscated.
The above law was issued back in 1941. Since then no changes or additions have been made. The law prohibits any provision of gambling entertainment, both online and offline.
But in recent years, legislation in the gambling industry has begun to liberalize. In particular, now playing poker in Brazil is legal.
In 2014, the implementation of Bill 186/2014 (Senate Bill No. 186/2014) began. Through this regulation, bingo, sports betting and slot machines are also subject to licensing. There is also another similar bill, House Bill No. 442/1991. These laws complement each other
The Caixa Econômica Federal is responsible for regulating the gambling industry in Brazil. This state-owned bank is responsible for issuing work permits for operators of lotteries and other legalized gambling entertainment.
According to the provisions of both bills, the government will treat everyone who wants to obtain official permission for gambling activities liberally. Also worth mentioning:
- According to Senate Bill no. 186/2014 the Ministry of Finance will appoint financial agencies that will deal with the issue of licensing and inspection of gambling sites;
- According to House Bill No. 442/1991, the issuance of licenses to operators of state lotteries and Jogo do Bicho lotteries will be dealt with directly by the legislature, but municipal committees also have the right to license bingo.
Popular licensed lotteries
Jogo do Bicho is another popular lottery in Brazil. Its distinguishing feature is that bets are made on animals. Each participant is assigned a number. For example, one could be a cow, two could be a cat, and the number 20 could be awarded to a cow. This game is legalized in the province of Paraiba.
The Lottery of Paraíba, LOTEP, is the regulatory body responsible for licensing lottery operators in the province of Paraíba. There are 15 licensed gambling establishments operating in this jurisdiction. In order not to lose their work permit, they are required to pay a monthly tax. The amount of this fee may vary depending on the city. For example, the tax rate for the central city of João Pessoa is 6,000 R$ or 1,900 USD.
Conditions for licensing
According to the provisions of the aforementioned legislative draft, the licensing procedure will take place only on the basis of the results of a tender. After the tender, the state proceeds to issue a concession for casinos and lotteries.
A mandatory requirement for obtaining a license is that the operator has a ground office in Brazil. Also, before obtaining a license to operate, the company must undergo a thorough check, the results of which confirm its viability and profitability. All hardware and software must be of the highest quality. Also, the operator must prove its creditworthiness and confirm the fact of payment of taxes.
Legal gambling in Brazil
Unfortunately, in Brazil there is still no clear regulation of the gambling entertainment industry. This is because not all games are defined as games of chance. Texas Hold’em, for example, is a game that requires the knowledge and skills of the player, not just luck.
In 1993, a law was passed that regulates the activities of the bingo operator. This entertainment could legally act as an additional source of income for sports organizations. The regulation and control of this area was carried out by the National Institute for Sports Development. But already in 2004, a decree was issued that abolished the legalization of bingo.
There is a strict state monopoly in the lottery industry. Licenses for private operators are issued by Caixa Econômica Federal.
Types of permitted gambling entertainment
Senate Bill no. 186/2014 and House Bill No. 442/1991 legalize the following gambling activities:
- Sports betting;
- Slot machines in which the Return to Player rate is at least 80%;
It is also worth noting that the adopted law allows the operation of casino hotels. Most of them will be in the northern and western part of Brazil. Such a license is issued for 25 years, in the future it can be extended. Only the state bank Caixa Econômica Federal can regulate and control the activities of online casinos.
The number of such casinos in each province will depend on the number of inhabitants of this territory. Each operator can only obtain 1 license per province, but no more than 5 licenses per country. Only those operators that have a land-based casino in Brazil will be able to provide online gambling services.
Online casino licensed by Caixa Brazil
According to the provisions of the Law of Contraventions, the activity of online casinos in Brazil is illegal. But, as in any other area, it is also possible to find a legal loophole here. This allows Brazilians to enjoy their favorite gambling entertainment through foreign sites. As long as the platforms conduct legal activities in their home country, the players are not violating any rules.
The lottery industry is completely monopolized by the Caixa Econômica Federal. In this regard, a clear licensing mechanism has not yet been established. The process of analysis and design of an optimal regulation model for a state-owned bank with private operators is still underway.
Activities Caixa Economica Federal
Caixa Econômica Federal organizes tenders from time to time which result in the appointment of lottery industry operators. Such representatives have the right to engage in the sale of lottery tickets and the provision of banking services. For online casinos, this state-owned bank has introduced a list of restrictions.
It is also worth noting that Caixa Econômica Federal has developed its own principles for responsible gambling. This allows the lottery industry in Brazil to meet all international quality standards.
The consumer code systematizes all the standards of social responsibility in the gambling industry. According to this regulation, lottery and casino operators are required to adhere to the principles of good faith, guaranteeing fair conditions for all customers to play. Operators are required to adhere to international concepts regarding the issue of fair customer service.
All companies that provide their gambling services are required to adhere to the Brazilian Civil Code. According to this legislative act, only persons who have reached the age of eighteen can participate in the gaming process.
Basic information about the Caixa Brazil license
In order to reform the gambling entertainment industry, the Brazilian government has adopted a number of laws and regulations. It was in the popularization of the gambling business that they saw an opportunity to quickly restore the state’s economy. Therefore, at this stage, Brazil is rapidly moving towards the legalization of online casinos.
State bodies have issued a list of documents that allow regulating the activities of bookmakers, as well as online casinos.
State lotteries organized by other states and federal districts are not subject to regulation at the legislative level. Of course, the large population of Brazil contributes to the popularization of the gambling entertainment industry. At this stage, only a few gambling games are legalized in the country. But thanks to active reforms, the situation is changing rapidly. And although the choice of gambling in this country is quite limited, many Brazilians use the services of online casinos with foreign licenses.
With the adoption of new laws and regulations, Brazil has the potential to become one of the largest markets for betting and gambling. The country has over 200 million inhabitants. 69% of Brazilian residents have access to modern mobile technologies. It is also worth considering the national love for football. This is a very promising market for bookmakers. Over the next 5 years, the gambling entertainment market in Brazil could reach $1 billion. This page features online casinos licensed by Caixa Econômica Federal, so you can be sure that they are safe and secure.