Here is the full text of the column signed by Minister Lummertz in O Globo:
While more than 13 million Brazilians suffer from unemployment, the National Congress discusses a bill that can attract more than R$ 50 billion (US$ 13.25bn) in investments and generate more than 100,000 jobs in Brazil. Regulating resorts integrated into casinos is urgent! The examples scattered around the world prove that they are a great business.
First of all, you need to separate the integrated resorts from other types of games, such as jogo do bicho and slot machines. For tourism, it is important to regulate the IR, which attracts international groups and promotes business tourism and events.
Today, we are in reverse in terms of global best practices. Of the 20 richest countries in the world, 93% have legalized gaming. If we take into account the 193 UN member countries, only a quarter of nations have any restrictions on the activity.
As we close the doors to abillion dollar business, which operates virtually worldwide, piracy takes over Brazil, and our tourists generate jobs abroad. Estimates indicate that illegal gambling moves almost R$ 20 billion (US$ 5.3nb) in the national economy. Currently, Brazilians account for 70% of the occupation and 50% of revenues from the main casino in Uruguay.
Singapore serves as an example of the transformative power of integrated resorts. Two hotel groups invested more than R$ 30 billion (US$ 7.9bn) in two projects. After that, the number of international visitors jumped from 9.7 million in 2009 to 17.4 million in 2017. Revenue moved from US$12.8 billion to US$26.8 billion in the same period. By way of comparison, Brazil received 6.6 million international tourists and earned US$ 5.8 billion in 2017.
Ultimately, supporting the integrated resorts is betting on event tourism. Casinos are only a small part of thismultibillion dollar business. The essence of it are corporate events, shows and entertainment. In this segment, Brazil - which has figured for more than ten years in the ICCA TOP 10, a global entity that ranks the countries that performed the most international events in the year - now bitter to 16th place.
Critics on duty, averse to any change, will claim that gambling facilitates money laundering and organized crime. Regulation with clear governance rules and monitoring avoid undesirable practices. The restricted model, with the granting of limited licenses, facilitates the rigid control of the authorities, using supervision structure similar to that of the Central Bank and Coaf in the banking sector.
With extremely limited investment capacity, it is up to the country to seek new ways of generating business. There is a phrase attributed to Albert Einstein, according to which, insanity is doing the same thing repeatedly and expecting different results. Everyone asks why Brazilcan not get out of the six million international tourists. Not approving the regulation of integrated resorts and expect a jump in tourism in Brazil would not be an attitude that borders on insanity?
Source: GMB / O Globo
