Brazil: increasing number of gaming rooms relying on judicial interpretations

Winfil and Keno Play, two gaming rooms located in Rio Grande do Sul, together with the recently-launched Espaço Real da Sorte (Real Lucky Space), in Sao Paulo are, according to their lawyers, complying with the legislation in force.

Winfil

Winfil relies on the absence of a legal “typification” of the acts described in article 50 of the Lei das Contravencoes Penais (Brazil's criminal legislation). The company alleges that it goes against the Constitution (articles 1º, 4º, 5º, 15º y 170º). The issue, which was brought before Río Grande do Sul justice is now being revised by Brazil's Supreme Court through an extraordinary appeal (RE 966.177) submitted by the state's Public Prosecutor.

In spite of an operation carried out by the Public Prosecutor and the police on October 30, the place resumed operations on November 9 and is still operating today. Currently, the number of gamblers is modest, but it is on the increase.

Keno Play

Keno Play operator opened two halls in Porto Alegre, and a third one in Passo Fundo, relying on Law 7.291 of 1984, known as “Lei do Jockey”.

One of the articles under which the company claims to operate is 14, which authorizes jockey clubs to operate “other lottery modalities.”

The “Lei do Jockey”, provides for this benefit for jockey clubs in Brazil, which is authorized by the countries' Ministry of Economy.

Currently, Keno Play's two halls in Porto Alegre are opened to the public although with few gamblers, but the hall in Passo Fundo is performing better and receives many of them. The operator already has plans to launch two new halls in Rio Grande do Sul, in the municipalities of Caxias and Novo Hamburgo, plus a third one in Santa Catarina.

Espaço Real da Sorte

Espacio Real de la Suerte launched in December and is located in Rua Joaquim Floriano, in Itaim, in the west of Sao Paulo.

The space will be used for leisure activities and events and part of the hall will be borrowed to entities hosting “philanthropic raffles” and “charity bingos”, protected by Law No. 13.204, dated December 14, 2015, which provides for a new regulatory framework for charity associations.

Expert Magnho José, a journalist who is responsible for Brazil's “Legal Gambling Institute” claims that the three operators had a wide spreading in the media and they are relying on partial and inadequate interpretations of Brazilian legislation, in addition to the decision of Rio Grande do Sul justice”.

“Gambling regulation in Brazil will not be achieved through gaps in legislation, but instead, by means of the approval of a specific Law included in bills PLS 186/14 from the Senate and the Chamber of Deputies' PL 442/91”.