Over the past 80 years, several issues have caused controversy in the country, and among them is the legalization of gaming. Ideological and religious issues ended up contaminating the debate, especially in the National Congress, which has been holding back the bills that deal with the subject. With this long period of illegality and the State's lack of willingness to regulate the situation, the result could not be more disastrous: the exponential increase in the supply of illegal gaming in the country.
Illegal operators do not pay taxes and also do not contribute to society. Therefore, it is imperative to discuss the need to legalize all types of betting, as in the main world economies. The United States, China, Japan, Germany, India, France, United Kingdom, Italy, Canada and Australia welcomed gaming into their legal system because they realized that, if there is demand, there will be the service provider.
And in Brazil there is also demand. A study by the Legal Gaming Institute (IJL) reveals that more than 20 million Brazilians try their luck daily in the jogo do bicho. Another 10 million look to more than 450 offshore websites, which offer sports betting (legal and in process of regulation) and online casinos (illegal). All this without the public coffers collecting a single penny.
Illegal gaming in Brazil moves over R$27 billion a year. Officials, operated by Lotteries Caixa, collect R$17.1 billion. Market research firm Global Industry Analysts, Inc. (GIA) estimated the global gaming market in 2020 to be US$711.4 billion, and the projection for 2026 is US$876 billion.
According to the American Gaming Association (AGA), the 989 commercial and tribal (on reserve) casinos in the US earned total revenues of US$77.33 billion in 2019, and US$10 billion in gaming taxes were paid to state and local governments in 44 states. The potential of a country's gaming market is equivalent to 1% of the Gross Domestic Product (USA, 0.82%; Italy, 1.32%; Spain, 0.72%; and Macau, 6.57%), depending on the characteristics of the population and the betting culture of its citizens.
The gaming market in Brazil, with the legalization of all modalities, has the potential to raise R$74 billion gross (1% of GDP in 2020, R$ 7.4 trillion), generating around R$22 billion in revenue taxes per year. This is without counting grants, estimated at more than R$7 billion, investments and the economic impact of the production chain. Legalization could generate more than 200 thousand direct jobs and formalize another 450,000 in the current unregulated sector.
It is important to remember that the debate over legalizing gaming should not only be about investments or new tax revenues, nor about the thousands of jobs it will create. These arguments are obvious and can be proven by more than 10,000 casinos and gaming rooms spread across five continents.
The debate is essential to mature and create legislation that allows citizens to exercise their desire to play, but under the watchful eyes of the State, with clearly defined rules that are effectively applied. That is our duty as a Parliament.
To address this issue pragmatically, the president of the Chamber, Arthur Lira (PP-AL), created a working group that will update the text that replaces Bill 442/1991, approved in 2016 by the Special Committee on the Regulatory Framework for Gaming.
Brazil has to legalize, regulate, control and debug gaming.
João Bacelar
Federal Deputy (Podemos-BA) and coordinator of the working group to update the text of Bill 442/1991
Felipe Carreras
Federal Deputy (PSB-PE) and rapporteur of the working group to update the text of Bill 442/1991
