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    Vicious Gambling Agreement Review

    With the economic turbulence, it has been said that gambling regulation (and taxation) could help the government increase revenues. Two bills are currently under discussion in Congress on casinos, bingos, online gambling and lotteries. Integrated resort casinos have been included in the Tourism Act and there could be an integrated resort bill that will be introduced later this year. Although not specifically focused on gambling, the general advertising rules in Brazil may have an impact on gambling, in Decree-Law No. 57.690 of 1 February 1966 and Decree-Law No. 4.563 of 31 December 2002, as well as in the provisions relating to the fight against money-laundering, are contained in Act No. 9.613 of 3 March 1998 and Act No. 12,846 of 1 August 2013. The Criminal Offences Act prohibits gambling in Brazil. Any form of gambling activity that has not been expressly authorized by law may be considered illegal under the law and, therefore, any person engaged in such activity may be prosecuted.

    Decree-Law No. 50.954 of 14 July 1961 establishes the monopoly of the Caixa lottery, and Law No. 7.291 of 19 December 1984 and Decree-Law No. 96.993 of 17 October 1988 govern horse betting. The application for a gaming licence for horse racing should be submitted to the Ministry of Agriculture. The applicant must be a non-profit organization legally registered in Brazil and holder of a circuit, and must also demonstrate the technical and economic viability of the weekly race plan and the race ground plan. This company must submit a draft general betting plan (which contains the rules applicable to each game to be executed by the operator, such as the price, the value of the ticket, the minimum and maximum amounts and the payment). Gambling is treated as an offence recognised by law as a minor offence (Article 61 of Law No. 9.099/95). In other words, a misdemeanor is a less offensive crime than a criminal violation of Brazilian law.

    The purpose of the use of the term “crime” is to set up the “moral police” which, according to Professor Humberto José da Nova, implies the “safeguarding of morality” in order to “prevent certain illegal and malicious acts or to defend certain moral feelings deemed essential to harmonious social cohabitation and whose effects harm the interests of the community”7 Therefore, Brazilian gambling regulation is still indeed. “Gambling” is a type of contract expressly designated by the Brazilian Civil Code, but which is not defined. Its definition is provided by case law. Brazilian federal legislation does not contain specific provisions regarding online gambling. Horse racing already offers online betting in Brazil and Caixa only offers online betting for its account holders. The majority of remote gambling activities in Brazil include offshore operators, mainly sports betting and bingos. Gambling is generally not regulated in Brazil. In fact, since the 1940s, Brazil has been a closed market for gambling, with only state lotteries and horse racing. For a short time in the 1990s, bingos and slot machines were allowed, but they were banned in the mid-2000s. However, there is a general perception that gambling activities in Brazil are a screen for money laundering and that gambling activities are managed by criminal organizations. This results from the fact that, despite the general ban currently in place, bingo halls, slot machines and jogo do Bicho are easily accessible in Brazil.

    If an offshore operator`s site is hosted in another jurisdiction where gambling is allowed, the contract between the Brazilian customer and that operator is valid and is subject to the operator`s right. . . .


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