GMB - Of the four bills related to gambling that are being discussed in Congress, which one do you believe is the most viable to be approved? Why?
Eduardo Ludmer - Since 2015, when it was included on the agenda of Senate, Bill 186/2014 became considered the favorite. This Bill has had 79 amendments since its introduction, by senators from the most diverse parties. However, after being approved by the Special National Development Commission (CEDN), responsible for Agenda Brazil, it lost momentum in March of 2018, when the Constitution and Justice Commission (CCJ) blocked the project. It was then sent with the two opinions (positive from CEDN and negative from CCJ) to the Senate Plenary, where it awaits inclusion on the Agenda.
The two “neophytes”, Bill 530/2019 in the Chamber and Bill 2,648 / 2019 in the Senate, are of a smaller scope, aiming to release gambling only in casinos-resorts. Between the two, it seems to me that the Senate's Bill 2,648 / 2019 has been the fastest, with the opening of Public Hearings for the instruction of the matter with the inclusion of the following guests: Attorney General, representative of the State Secretariat for Tourism, and the representative of the Ministry of Tourism.
It is difficult to choose the winning horse, but I believe that the Senate bills are more advanced than those of the Chamber.
Do you believe that the release of casinos only in resorts will be beneficial for Brazil as a whole? Who benefits from this?
I believe that the permission of games and betting activity, as a whole, is beneficial for Brazil. There is no point in permitting only at casino resorts. It does not make sense to permit only to a few resorts leaving hundreds of other potential entrepreneurs, including small and medium sized ones, out of the market. The important thing is that we have clear and democratic rules for obtaining authorization, licenses, supervision, entry control, list of addicts, taxation, advertising, education campaigns, among others, both for offline and online activities. It is worth remembering that in the vast majority of developed countries, gambling activity is allowed, with due regulation and supervision.
The ban on gambling follows the same nefarious rationale that will permeate the entire Brazilian order - the principle that the Brazilian would be a savage, which needs more bureaucratic and complex rules and laws (if not, weird prohibitions like those of gambling) for prevent you from committing fraud and taking advantage of and against everything and everyone. This principle of the Brazilian as a savage will guide our entire legal system, so that, instead of adopting faster, more effective laws, processes and procedures, we continue with innocuous, outdated and backward laws, culminating in the well-known “Brazil cost”, where bureaucracy, impunity, inequality, and other problems that stifle freedom and entrepreneurial initiative and the flourishing of a good business environment prevail.
The jogo do bicho is one of the most famous games of chance in Brazil. Do you think it is time to legalize it instead of throwing it under the rug?
The jogo do bicho is a game of chance like any other. I see no logical, economic, or legal reason to prohibit it at the expense of other games / bets and vice versa.
Is it possible for the Supreme Federal Court (STF) to annul the effects of the Criminal Misdemeanor Law?
The Judiciary has been taking the lead and leading the way in many matters that, in principle, would be within the authority the Legislative, but whose sluggishness encourages it to practice what we call judicial activism, aiming to protect the Federal Constitution and its principles. We saw this movement in the decision that made imprisonment possible after a conviction upheld by a court of appeals (which, unfortunately, was later reversed), recognition of homosexual union, criminalization of homophobia, decriminalization of abortion, etc.
Nevertheless, considering its current composition and the political scenario, I would not bet my chips on a declaration of illegality of Art. 50 of the Criminal Misdemeanor Law by the STF.
The regulation of sports betting should come out in July this year. Do you believe that this legislation is a gateway to the legalization of other types of gambling verticals, such as bingo, casino, jogo do bicho, etc.?
No doubt. Not only the future regulation, but the permission itself through Law 13.759 / 2018. In just over two years of permission, thousands of jobs and massive investments in sports sponsorship were created through national and foreign sports betting companies. To give you an idea, only in the Brazilian First Division Soccer Championship, 14 of the 20 clubs are sponsored by sports betting companies.
Correct and efficient regulation will bring legal certainty so that larger investments can be made and, at the same time, allow the citizen / gambler to fully exercise their rights. On the other hand, it will legitimize the Federal Government to collect billions in taxes that can be invested in education and health. In fact, some of the main Bills require that the funds be invested, mandatorily, in health, social security and social assistance.
After the STF's decision at the end of last year, states began to launch their own lotteries. But now, the federal government wants to limit bets to prevent the creation of state lotteries from emptying federal concessions for the sector. In this case, do you believe that the state lotteries will be able to maintain and profit for the benefit of society? How to proceed legally so that everyone wins?
The STF's unanimous decision was unequivocal when it affirmed the right of States to have their own lotteries. I don't think it will come back. It is up to the individual bettor to choose which lottery he wants to play. The more players in a properly secured, regulated, and supervised market, the better for the country.
Do you think that this year, in Brazil, there will be a definite takeoff towards a regulated gambling market? Are companies of the sector that have arrived and invested in Brazilian sport looking for legal support to also embark on this fight?
Brazil has always been considered by many in the industry as the sleeping giant. The liberalization of sports betting, despite the still lack of regulation, demonstrates the potential of the betting and gambling market in the country. Companies have sought our support to understand the legal and regulatory framework and to be able to act safely. Whoever is already structured and with the right knowledge and expertise will be better positioned to take advantage of the chances.
Source: Exclusive GMB
