Prohibited in Brazil for about 80 years, the issue of legalization and exploitation of gaming in the country was once again discussed in the National Congress. Brazil, according to a survey carried out by Instituto Jogo Legal, is the largest exporter of casino players in the world, with approximately 300,000 people traveling abroad each year in search of these activities.
The subject comes up again with a new fact in favor of its defenders: the need to create jobs in the face of worrying indicators resulting from the ongoing economic crisis.
Unlike what happened in other countries that coexist harmoniously with the activity, it is worth remembering that since its “ban” in Brazil, in 1946, gaming still faces ethical and moral prejudices. With the ban, dozens of casinos were extinguished and, consequently, thousands of formal jobs, with several negative consequences - especially in tourist locations, in addition to stimulating the expansion of clandestine activities (from the jogo do bicho to organized crime).
For the Fecomercio Sao Paulo Tourism Board, the subject, which is extremely controversial in society, should be analyzed with the utmost caution. See, below, what the entity thinks about the benefits and the enormous challenges that are imposed on legalization.
Points that need further discussion, both in society and in Congress
Something that needs to be taken into account is that, with the legalization and liberalization of gaming in different regions of a continental country, this can mean the dilution of the potential of tourist attraction and of local social and economic developments, relevant objectives of the proposal. For example, of what happened with the government's decision on the occasion of the 2014 World Cup, to encourage the construction of stadiums in 12 host cities, when not all of them had the potential or capacity to become a major tourist attraction pole.
This points to the need for capacity from a structural point of view – fundamental for the development of tourism in a region –, for example, the available air network.
In addition, it is necessary that the executive public inspection bodies are sufficient and with an adequate structure to control the activity, in order to avoid (and not allow) criminal and mafia actions, as well as to prevent the use of gaming as a possible channel for money laundering.
It is also necessary that public safety and health structures are able to bear the possible consequences of pathologies associated with gambling, such as an increase in the dependency rate and addiction to alcohol and drugs.
Companies with know-how in casino operation are mostly international. It is necessary to know how they will be able to operate in Brazil, in the midst of legislation that provides for a market reserve for national companies.
Positive points to consider for legalization:
- Increase in revenue without increasing taxes.
- Expansion and diversification of the entertainment offer, since the structures proposed for the installation of casinos, as in international destinations, are composed of an entire leisure complex, such as theaters, shows, gastronomy and nightlife.
- Tourism development and job creation.
- Possibility of training manpower in the locations where the casinos were implemented.
- Products with high capacity to attract international investments.
Gaming is legal and regulated:
- In 75.52% in the member countries of the United Nations (UN);
- In 71.16% of the countries that make up the World Tourism Organization (WTO);
- In 97% of the countries that form the Organization for Economic Co-operation and Development (OECD);
- In 93% of the G20 nations, of which only three do not allow it: Brazil, Saudi Arabia and Indonesia. It is worth remembering that the last two are Islamic;
- Despite the Islamic majority, countries such as Lebanon, Morocco, Tunisia, Indonesia and Egypt allow the operation of gaming. The United Arab Emirates, also Islamic, announced, in January, the implementation of its first casino.
Even after 80 years of prohibition in Brazil:
- Illegal gaming generate more than R$ 18.9 billion (US$ 3.9b) annually in clandestine bets;
- 20 million Brazilians bet daily on the jogo do bicho;
- More than 10 million Brazilians bet every day on games and sports betting on the internet;
- The Brazilian is not prevented from playing, Brazil is prevented from collecting taxes with the activity.
The legalization of the sector in Brazil:
- Would generate 658,000 direct jobs and 619,000 indirect jobs, with the sector’s production chain (0.94% BNDES/Commerce index);
- Thousands of jobs would be allocated to people with disabilities to comply with the Quota Law.
- Legalized gaming would raise R$ 74 billion (US$ 15.3b) a year;
- The sector would pay R$ 22.2 billion (US$ 4.6b) in taxes;
- It would raise R$ 6.7 billion (US$ 1.b) in grants.
As the Institute explains, the prohibitive legislation has not changed the scenario of illegal gaming in the country, which annually generates, in clandestine bets, more than R$ 18.9 billion (US$ 3.9b) with jogo do bicho (R$ 12 billion – US$ 2.5b), bingos (R$ 1.3 billion – US 270m), slot machines (R$ 3.6 billion – US$ 750m)) and sports betting, iGaming and internet poker (R$ 2 billion – US$ 415m). Illegal gaming in Brazil moves much more than official gambling (R$ 14.5 billion – US$ 3b annually), without any counterpart of these resources to the State and society.
Source: FecomercioSP
