In the public debate on the legalization and regulation of gaming in Brazil, especially reinvigorated during the assessment and approval of Bill No. 442, 1991, by the House of Representatives, one of the most used arguments was that the opening of this market in Brazil could lead to the proliferation of organized crime.
This argument only reproduces the common sense that the operation of gaming, especially casinos, is related to organized crime and favors, in some way, the action of local and international criminal groups. This perception ends up being the fruit of what is seen in films, novels, books and a poor understanding of the history of one of the best known gambling centers in the world: Las Vegas.
A brief analysis of the trajectory of the sector shows that this association between gaming and crime is overcome, and, in the United States, more than 70 years ago, precisely with the issue of a specific legislation on the topic – the solution that, at this moment, is in the hands of the Federal Senate.
Before the 1950s, the operation of casinos and gambling in the United States was, in fact, mostly carried out by organized crime. Several groups exploited illegal lotteries, installed small casinos in restaurants and nightclubs, fostered bookmakers, and often used these developments to launder money.
In the state of Nevada – which is home to Las Vegas – the first casinos were installed and built by organized crime. These establishments were not subject to any kind of supervision and, consequently, operated dishonestly, often linked to other illicit activities.
The perception of this movement, at that time, reached the representatives of the federal government of the United States. Concerned about the situation, the federal government orchestrated an intervention on casinos installed in Nevada in order to curb the actions of criminal organizations, and even considered, at the time, to prohibit the operation of gambling in the state.
The point is that casinos were already of notorious importance to the local economy and tourism, attracting visitors and players from other states and countries with the gaming industry. The city was already known for its diversity of casinos, artistic shows and as a national and world entertainment hub. Casinos moved and fostered the economy of the city of Las Vegas and the state of Nevada, with jobs, economic development, increased taxation and strong tourism.
The threat of federal intervention to curb illicit practices tied to casinos has raised a significant question to the Nevada state government: how to mitigate national concerns about the operation of games by organized crime while preserving the economic and tourist advantage arising from these ventures?
The Nevada government's solution was to take regulatory policies to oversee and control the industry to curb illicit organized crime practices and ensure honest and transparent exploitation of gaming. That is, instead of simply banning, the chosen solution was to regulate, supervise and control the activity.
To make this possible, the State of Nevada mapped out all the factors and loopholes that attracted organized crime to casinos and created rules and control mechanisms to eliminate those attractions to crime. The legislation created required the adoption of parameters and rules that gave honesty, transparency and, especially, reliability to Las Vegas gaming sector. With this, organized crime was eventually purged from Las Vegas casinos, which prevented the much-feared federal intervention.
In addition to fending off this risk of intervention, Nevada state representatives realized that the regulation of the sector was also beneficial to local economic and tourism development. The perception that the activity was operated in an honest and safe way has increased the casino audience, private investments and the development of the gaming industry, which maximized the benefits of this sector to the economy.
This brief retrospective on the "before" and "after" regulation of the sector, which occurred in the 1950s in Las Vegas, is undeniable historical evidence that the association between gaming and the proliferation of organized crime is a myth, only being possible where this economic activity is marginalized and indiscriminately prohibited.
From the experience of the State of Nevada, it is clear that the approval of a serious and consistent regulatory framework for gaming in Brazil would have the effect absolutely opposite to that of the popular imagination: instead of favoring the action of organized crime, the law will create means to combat the practice of illicit, to ensure that the activity is practiced honestly, reliable and responsible.
It is therefore in the hands of the Federal Senate the opportunity to "turn the game", approving Bill No. 442 of 1991.
Philip Senna
Lawyer, specialist in Gaming Law, master's degree in Law from IDP and partner of Jantalia Advogados
