VIE 29 DE MARZO DE 2024 - 11:30hs.
BGC 2018 – Market debate

"Either Brazil legalizes gaming or it will migrate to criminal structures"

The start of the second day of the BGC featured a fantastic debate on ways to attract investment into a regulated gaming industry in Brazil, moderated by Igor Federal Trafane (BSOP CEO), Régis de Oliveira (former deputy and advocate of regulation of the activity), Magnho José (IJL President) and Bruno Omori (ABIH President).

Igor Federal spoke of the legislative, hotel and legal battle to regulate the gaming industry, emphasizing that the debate on the theme is more alive than ever and that the participation of all the parties is fundamental to show society the benefits of the activity.

Régis de Oliveira, a former judge and ex-deputy, said that the lack of unity among all those interested in regulating the gaming sector made it difficult to proceed with an effective process of broad approval. "Nothing comes because one day those interested in casinos ask for one thing, the jogo do bicho asks for another and the bingos ask for a third thing. This can not continue," he said, noting that there must be a consensus towards a regulatory framework of gaming and not one or another segment. Régis said that the defeat of PLS 186/2014 in the Constitution and Justice Commission should be passed in plenary.

Magnho José, of the Brazilian Legal Gaming Institute (IJL), said that working for legalization of the activity and interlocution with Congress is always a race with obstacles. "We have always had exhaustive discussions to show that gambling is an economic activity like any other and that should be recognized as such," he said.

Bruno Omori, president of the Brazilian Association of Hotel Industry (ABIH), said that "talking about tourism is like talking about the gaming industry, because they are activities that generate jobs at different levels of the economy. We have shown to the authorities that gaming can attract even more tourists to Brazil. We have lost spaces to other destinations because we offer less leisure alternatives," he analyzed, comparing the Caribbean, where there are gaming options, with the north coast of São Paulo. "A tourist chooses the Caribbean, where he has a gaming offer, instead of coming to the beaches of São Paulo, which has the same or even more natural beauties but does not have the gaming option."

The cost of gambling not legalized, in Régis' assessment, is very high. "Brazil fails to collect taxes, generate jobs and still has to combat illegal gambling, which is not productive for the country. By regulating the industry, all of this can be reversed". According to him, there are talks in Brasilia of a possibility of repealing the Law of Criminal Offenses, which could make any gambling activity allowed.

Magnho recalled that online gaming already moves R$ 6 billion (US$1.45 bn) per year in Brazil, without any consideration for society. On hearing this, participants in the debate unanimously agreed that it is high time to approve the activity of gaming broadly, "to raise taxes, generate jobs and avoid spending on the persecution of the illegal activity."

Omori recalled that, in addition, there is an evasion of tourists, who seek other places that have the option of gambling. "Brazilian players are banking the casinos in Punta del Este, Uruguay, which demonstrates how much we are losing in direct and indirect opportunities, since shows, exhibitions, handicrafts and other attractions could be incorporated into the gaming offerings and further expanded the collection," he said.

"Man is condemned to be free, as Sartre said," said Régis, noting that we should have freedom as a basic assumption. "The Brazilian Constitution gives guarantees of individual liberties and economic liberalism, that is, full rights for all, which is not in line with the activity of the gaming. What prevents me from entering a gambling house?" asked Regis, saying that we are not aware of exercising our freedoms. According to him, if all segments of the gaming industry come together and go to the Federal Chamber, they will get with President Rodrigo Maia the placement for a Plenary vote. "Only the jogo do bicho sector employs 400,000 people, which shows that only one side is responsible for so many jobs," he said.

Omori and Régis have pointed out that the market itself will be self-regulating as a definition of the number of casinos when it comes to approving, for example, one per state.

"Either Brazil legalizes gaming or it will migrate definitively and intensely to criminal structures. I have information that the PCC is trying to enter more and more into the clandestine gaming both in the south of the country and in São Paulo. The social cost of this will be very high for the country", concluded Magnho José.

Source: Exclusive GMB

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