"Collection with legalized gaming can reach US$ 8.95 billion per year in Brazil"

What actions are already planned for the new mobilization in favor of the legalization of gaming and casinos in Brazil?
Leonel Pavan - The members of the National Forum of State Tourism Officers ( Fornatur), of which I am vice president for Institutional Relations, believe, and I also believe, that the current moment of the country is unique so that the casino segment returns to the debate and present itself as an indispensable tool to boost the tourism industry in Brazil, following the trend already traditional in developed countries.

In view of this, we are preparing a manifesto to raise awareness and help to pressure and expedite the National Congress to approve the legalization and regulation of gaming and casinos, in view of the projects in this regard that are processed there and are in an advanced stage of agreement for unification and final approval. What is slowing the process is the vote on the national reform agenda, delayed by the current political crisis. Our action is expected after this vote, so that the action is not overshadowed and the impact is greater between the political class and the Brazilian society itself. The goal, however, is for action to be taken in the second half of this year.

Which points will be most addressed in favor of casinos? Will the tax collection be the flagship?
Brazil is one of the few democratic countries in which gaming, and mainly casinos, are not allowed. Calculation of the main entities and pro-gambling NGOs in Brazil report that the illegal gambling market circulates almost US$ 6 billion a year, much more than the official games in the country, such as Mega-Sena and others, with cloase to US$ 3.6 billion. On the other hand, there are technical estimates within the government itself that the collection with legalized games and casinos can reach US$ 8.95 billion per year. Other indications, such as the " Arrecada Brasil" movement, which also advocates legalization, amount to US$ 11 billion per year of tax collection.

It is one of the most important points, even because the collection will be linked to investments in the social, health and education areas, but not the only one. Legalized and well supervised, gaming will also represent new qualified and professionalized work fronts in the tourism sector. Tourism and quality of life can be boosted, generating the so-called "virtuous circle" of the economy in the segment.

To which sectors of society does mobilization aim to achieve? Is there an intention to make a campaign to clarify some doubts of the general population about gaming?
In society as a whole, but mainly with opinion leaders across sectors, including community leaders. The legalization of casinos and gaming is still a subject of controversy in Brazil. Many groups criticize the proposed legalization, including religious seats in Congress, arguing that gambling could lead to money laundering, and the creation of criminal organizations and addiction.
But it must be explained that in the legalization projects that go through both the House and the Senate, casinos would be limited according to the population of the states and will only work in leisure complexes constructed or adapted for the purpose of gaming. Complexes that contain, in addition to the games space, luxury hotel, shopping, restaurants, entertainment spaces, convention center and other recreational areas. That is, there will be no games or slot machines released at popular venues, bars or restaurants. On the other hand, the surveillance system will be federal and fully adapted to current technologies, very different from when gaming was banned, seventy years ago.

The new mobilization will be coordinated by Deputy Herculano Passos, with a well-known trajectory in favor of casinos. What is the expectation for the partnership with the deputy?
Very good. Deputy Herculano is in tune with the parliamentary movement around the theme and represents a source of up-to-date consultation on the subject also for the tourist trade. It will also be a great way to exchange information since in our political trajectory, as a senator in 2004, I also presented a bill that had provisions on the exploitation of bingo games and the legalization of gambling in casinos. That project advanced well in the committees of the House, but then I withdrew it waiting for the presentation of the similar project announced by the government at the time, the result of a study of an Interministerial Commission formed by the Civil House, in order to widen the debate. Unfortunately, the government initiative did not materialize and we lost the opportunity to have a good debate with society in that sense.

What is your assessment of the progress of the legalization casinos in Brazil? Do you think both the House and Senate bills can be voted on soon?
As I said before, the necessary debate ended up being delayed because the government decided to interrupt the project of its initiative since 2004. Since then, these new projects have arisen and times have also changed. Gaming and casinos are important economic factors for tourism, the economy as a whole and the social sector. So much, that countries of Buddhist culture and religion like Japan, have already approved and implemented the casinos. I see a more favorable scenario nowadays in Brazil, also because we need to increase revenue and resume economic development. I believe there will be a parliamentary awareness in this regard to expedite the vote in Congress.

Speaking especially about Santa Catarina, what are the plans for installing casinos in the state? There is a lot of talk about a project for the city of Camboriú, where the main investment may occur, but is it possible to invest in other regions? What would they be?
Investors from both inside and outside the country need the necessary legal certainty to define projects and investments in this sector. Therefore, the first step is to legalize and regulate the activity with clear rules. For now, the expectations are generic, but it is clear that in Santa Catarina there are already movements for investments in the region of Balneário Camboriú and in the capital, Florianópolis, without prejudice to the fact that other strategic regions may be mapped, since the state enjoys good economy and quality of life.

Representatives from international groups of casinos, such as Sands and Caesars, were recently in Brazil and presented projects for large centers such as São Paulo and Rio. How does the state see this investors' primary interest in these cities? What will be the main attributes presented by Santa Catarina to attract these investors?
It is natural the initial interest in the great economic centers and consumers of the country. Santa Catarina, however, will not have difficulty presenting itself as a differentiated tourist and economic alternative, since we are, in fact, a state differentiated from the others. Regional tourism is a pioneer in the country with 12 well-defined and strategically close tourist regions, public safety, quality of life and average income per capita of the inhabitants, will certainly be some of the factors to be worked in this direction.

Besides the casinos, does the state have any plans to attract investment and move tourism with other gaming ventures, such as bingos?
I think the great difference is that, and that it can be positive in the sense of the big companies flexibilizar their projects of gaming and entertainment in other alternatives according to the regions of Santa Catarina, its population and its potential. Once the new legislation has been defined with the specific rules, I believe that new alternative projects may emerge, even in partnership with the private sector, with a focus on tourism.

If gambling and casinos are legalized, what is your expectation for the future of this market in the country, both in economic and social terms?
Very good, if you observe the professionalism and the modernization that already are characteristics of this sector in the whole world. In addition to the expectation of collection already mentioned, there are also the investment prospects of the big companies in the area and which are cited around US$ 24 billion. This represents the generation of thousands of new direct and indirect jobs because tourism and gameing also move countless of other economic segments. If there is a collection, the return will be mapped to the social areas, which can result in an improvement in the general quality of life of the population affected. And, of course, with strict control and supervision that the current situation allows, including awareness and participation of society by available means.

Source: Exclusive GMB