Part 2: The curious case Part
of Brazilian
1: Data review
bingo
2000s, the government moved again
to take hold of the sector, transferring
regulatory oversight to the lottery
operator Caixa. With this move, the
central government hoped to close
down the market by allowing licences
to lapse, though this was contested
at state level with state courts issuing
licence extension orders.
Three events in 2006 and
2007 combined to bring a halt
to the evident chaos. A special
investigation by the Federal Police
and Prosecution Services (Operation
Hurricane) confirmed corrupt
practices in some courts that had
been extending bingo licences
through judicial orders, undermining
public confidence in the integrity
of courts.
Brazil’s Constitutional Supreme
Court then affirmed the federal
government’s exclusive control over
gambling regulation, establishing that
Brazil’s state governments lacked
the competence or power to enact
legislation to permit bingo businesses
to operate.
Finally, a Parliamentary Commission
of Inquiry (the CPI dos Bingos)
reported that organised crime
interests – both domestic and
international – had captured much of
the Brazilian bingo market. It found
that criminals were using bingo halls
to launder money and that proceeds
Neither the ‘Zico’
nor the ‘Pele’ laws
established legal clarity
over either the licensing
process or the gaming
machine products in
the halls. The situation
worsened when various
state governments
issued their own
regulations and licences
BRAZIL The regulated opportunity in Latam’s largest market
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