Gambling was banned in Brazil in 1946 by the then president General Eurico Gaspar Dutra, due to the influences of his wife, Carmela Dutra, who was a fervent Catholic and believed that gambling corrupted people's integrity. Objectively, however, what the measure caused was the loss of approximately 40 thousand direct jobs, the reduction of tourism and public revenue, in addition to the loss of several indirect jobs.
Several casinos were part of the history of Brazil, encouraging culture and artistic development, or even with tragic events such as the suicide of Santos Dumont, which took place in the casino of the Grande Hotel La Plage, in the city of Guarujá. With the ban on gambling, much of that history was lost.
Since the 1990s, the legislature has been discussing the resumption of gambling in Brazil. In 1994, the Zico Law proposed the legalization of bingos as an alternative of collection for sports entities, which was also ensured by Law 9.615 / 98, the so-called Pelé Law. However, in the 2000s these activities were again prohibited, under the allegation of the State that it did not have the capacity to supervise these activities and that this would facilitate money laundering.
Well, gambling is no longer allowed in Brazilian territory and money laundering continues at full throttle, making use of the most diverse activities such as football, tourism, agribusiness, artistic activities or even advocacy. None of these activities, however, have been banned by the State. And it should not, since the inability to inspect the State cannot be a justification for the prohibition of an economic activity.
More than that, with technological development, the ban on gambling and betting in Brazil no longer has any practical effect in preventing people from placing their bets. Using the internet, most Brazilians started betting on international websites. In other words, international companies exploit economic activity in Brazil without local competitors and collecting taxes for other countries. Which turns out to be absolutely unwise.
But we cannot say that the discussion is dead in Brazil. Defended by the Minister of Economy, Paulo Guedes, the liberation of games of chance has been in Congress since 2014, through the Senate’s Bill 2014/2014. However, it seems that the topic does not arouse the interest of Brazilian parliamentarians as it should, since in a time of unemployment and fiscal crisis, the activity could boost tax collection and job creation.
More than that, if well used, it could also generate the development of several regions of the country, as well as the sustainable exploration of areas such as the Brazilian Amazon and the Pantanal. The potential of casinos as promoters of tourism and entertainment is undeniable, and this is one of the activities that can provide a sustainable investment in preservation areas.
Money laundering? It continues in full swing in Brazil, with or without casinos.
Vinícius Loureiro Morrone
Vinícius has a degree in Law and Business Administration, a master and doctoral degree in Business Administration, has experience in several branches of Sports Law and in sports management consultancies for various modalities. He works with a focus on sports strategy, governance, and marketing.
