Lannes spoke in the Casinos panel with AML (Anti Money Laundering) Chief of the City of Buenos Aires, Lottery Carolina Galtieri, and moderated by the host Carlos Burundarena, from BCS Compliance Solutions.
Brazil is one of the largest markets in the world not legally exploited and banned since 1941 by President Getulio Vargas. However this prohibition did not eradicate illegal gambling. At the present 1 of every 3 reales bet in Brazil goes to illegal gambling according to the Legal Gambling Insitute (Instituo do Jogo Legal).
Bill of projects to legalize gaming
Over the last three years, the Brazilian Congress has analyzed the possibility of legalizing gaming in Brazil in two different ways. The first by the Senate and the second by the Chamber of Deputies. in general terms, both projects aim to legalize all the modalities of games of chance.
According these projects, the delegation for the exploitation of games of chance is exclusive responsibility of the Federal Government who grants the gaming licenses to the operators, unlike Argentina, where the provinces and the city of Buenos Aires grant and revoke them according constitutional delegation of powers.
Brazilian market size
Lannes highlighted the dimensions of the Brazilian market, with 207 million inhabitants, and made a comparison with Argentina with 40 million inhabitants and an average of 577 inhabitants per slot machine and a total of 70.000 slots in Argentina (1)
Figures can be compared in the exhibit:
1. Source: Own compilation base don Statistics Bureau of Argentina and the book El poder del juego de Ramón Indart y Federico Poore (Aguilar, 2014)
“If Brasil had the same average of 577 inhabitants per slots, there would be 350.000 slots machines all over the country according to my estimates.”
Employment
Lannes remarked that “today illegal gaming employs 400.000 people with jogo do Bicho and bingos, played by 20 Millions of brazilians. In Argentina gaming industry as a whole provides work for 240.000 people. There is a great opportunity for massive job creation in Brasil, not only for gaming, but also for hospitality.”
Taxes and revenues
It is estimated that with the opening of all the gaming modalities, it could generate 5,5 USD billions in taxes, with a potential gaming revenue of 17,5 USD billions.
Lannes commented that “in different editions of the Brazilian Gaming Congress, different voices requested the lawmakers to have reasonable taxes”, learning from cases in latin american countries where fiscal deficit led to create new taxes carrying the industry to a bankruptcy or break even, like in Panama, where due to new tax over player’s bet since 2014 where dismissed 25% of the total workes in the industry, also affecting the hotel industry.
Solve problems of bureaucracy, and simplify a complicated tax regime, are issues the law makers should take in account to promote investment, employment and growth with this new industry.
Anti Money Laundering
There will be very strict rules for companies and their partners that want to have gambling halls, with some requirements like: experience in the industry, financial capacity, and transparency of operations. Therefore, the new entity that will supervise and regulate AML (Anti Money Laundering) standards will have a key role in the regulatory process.
Source: GMB
