Since 1946, when the then president of Brazil Eurico Gaspar Dutra banned the practice of gambling in Brazilian territory, the topic has been discussed several times by authorities, players and companies operating in this sector. However, recently, the government again discussed this issue and brought up the debate on the legalization of gambling in Brazil again.
But after all, what are the advantages and disadvantages of legalizing gambling in Brazilian territory? Who are the people who in favor of legalization and who is against? In this publication we are going to present a little more about this topic that has already caused so much controversy inside and outside the Brazilian plenary.
The current situation of gambling in Brazil
Before addressing who are adept at legalizing gambling and who are against it, it is important to conceptualize gambling. Chapter VII of Law No. 3,688 of 1941 states that games of chance is any and all games in which the win or loss depends exclusively on luck.
Therefore, games such as bingo, slot machines, roulette, blackjack, poker, scratch cards and dice, in theory, would enter into this concept of gambling under Brazilian law. However, while these are games of chance, they represent a good way of entertainment and fundraising.
That is why it is very common to see institutions in Brazil organizing charity bingos, where the money collected from the sale of cards is redirected to Non-Governmental Organizations (NGOs). And it is undeniable that the game of bingo is a good way to raise funds for a specific purpose.
It was also thinking about this that Brazilian authorities decided to bring Bill 186, which partially regulates the gambling market, to the discussion agenda. In Bill 186 the exploitation of bingo games is allowed in Brazilian territory, as long as this practice is performed by a duly accredited organization.
Now that we know what situation we are in, it is time to understand some arguments as to why a regulation and legalization of gambling in Brazil would be beneficial for Brazilians.
Jobs and investments are some of the arguments
Various evidences from other countries, such as the United Kingdom and Australia, show that the legalization of gambling generates extra resources for the government to reinvest in key areas of the economy, such as infrastructure, health and education, for example. In addition, the jobs generated by the gambling market are also a point to be considered by the authorities that regulate a country.
Consider the example of the United Kingdom, which had its gambling and sports betting market changed in 2014. In the UK alone, after the regulation of gambling, there were more than 100,000 employees linked to the sports betting and gaming sector unlucky, which represents a massive reduction in the unemployment rate, strengthening the economy of that country.
Another country that also has a great example of how an economy can benefit from the legalization of gambling is Australia. Australians, since legalizing and regulating gambling in their territory, have seen a significant increase in government revenue.
Considering the data published in studies, the state's revenue from gambling taxes was approximately US$ 1.5 billion in 1988 and 1989. However, 10 years later the authorities saw that same figure reach US$ 4.4 billion. The main responsible for this increase were bets on horse racing, casino, lotteries and slot machines.
Foreign companies know the Brazilian potential
The Brazilian market is one of the most interesting in the world for sports betting and gambling companies. After all, of the little more than 200 million inhabitants, more than half are inclined towards some sport, not to mention the culturally recognized jogo do bicho, which is present daily in the lives of some Brazilians.
This perspective of the Brazilian market makes companies from abroad interested in investing in Brazil and further increasing adherence to gambling. This, in turn, would give Brazilians opportunities to work in casinos or even gambling sites.
In addition, in the Global Views on Vices survey, conducted in 2019, approximately 64% of respondents believe that gambling is morally accepted, or are indifferent to the morality of this practice. Therefore, Brazil has a good potential for the game of chance to be effectively legalized.
But after all, who is blocking the new gambling laws?
While Bill 186 is pending in the plenary, the religious bench in the chamber tries to stop the advance of the legalization of games of chance by imposing ethical and moral barriers to this practice. According to those opposed to legalization, games of chance represent a huge risk for those who play them, which can generate mental, physical, financial problems, among other issues.
However, Ângelo Coronel, senator for the PSD, said that Brazil misses great opportunities with the lack of legalization and regulation of games of chance. After all, the Brazilian plays jogo do bicho, makes sports bets and participates in bingo games, only all of this without having to pay a cent of tax.
In other words, the practice of gambling exists in Brazilian territory, what is missing are laws that regulate this practice and generate revenue for the state, allowing it to reinvest these resources in important sectors of the economy to allow a socioeconomic advance for Brazilians.
The good news is that there are high expectations for the next steps for the legalization of gambling in Brazil, possibly being a regulated practice in national territory, allowing the Brazilian no longer to travel to play in a real casino.
Source: Roberto A Lopes – JB
