Since 1946, when casinos and gambling were banned in Brazil, nothing has prevented gambling from expanding illegally– just remember the popularity of the jogo do bicho. The State became the only authorized banker with lotteries, but the public authorities stopped exercising their regulatory role. With the internet, Brazilians began betting on foreign websites, with no one to turn to in case of fraud. Only with the recent regulation of sports betting did the situation begin to change. A new step is the Bill that legalizes casinos, bingos, and jogo do bicho, approved in the Chamber and the Senate's Constitution and Justice Committee (CCJ).
After 78 years of prohibition, it is clear that the best alternative is to legalize gambling. It is necessary, indeed, to take precautions to mitigate risks such as money laundering or gambling addiction. But there are ways to punish those responsible for criminal manipulations. And there are plenty of examples worldwide to inspire the regulation of casinos and other forms of gambling.
The economic and social indicators of the countries improved, there was no increase in violence or tax evasion,” says Senator Irajá, rapporteur of the project in the CCJ of the Senate.
By legalizing gambling, Brazil will follow the example of countries such as the United States, China, India, Germany, Japan, France, Italy, the United Kingdom, or Australia. Only in the U.S. there are over a thousand casinos in 40 states, employing 1.7 million people and generating US$240 billion annually. In a sample of 200 countries analyzed by the British medical journal The Lancet, 164 allow some form of betting. Of the 50 European countries, 48 permit gambling. In the Americas, Brazil is in the minority: 33 out of 37 countries do not prohibit gambling; they prefer to regulate and tax it.
In the U.S. state of Nevada, home to Las Vegas, two agencies license, regulate, and oversee the sector. Anyone holding more than 10% of the capital in gaming companies undergoes rigorous scrutiny and must fill out 65 pages of forms. Producers and distributors of equipment such as slot machines are also evaluated. Anti-money laundering legislation equates casinos with financial institutions for supervisory purposes.
In the United Kingdom, the Gambling Commission protects the interests of bettors. At the end of April, it fined an operator £582,000 for failing to take precautions against money laundering. In Macau, the Gaming Inspection and Coordination Bureau requires the main person responsible for casinos to have permanent residency and hold at least 15% of the business. Executives undergo aptitude tests. The concession lasts ten years, but there is supervision and renewals every three years.
In Brazil, the project limits the number of casinos per state and aims to integrate them into resorts and tourist hubs. Among the precautions, there are measures to prevent indebtedness and money laundering. Betting in cash will not be allowed. A national authority is also created, which needs to have full powers to curb abuses. The expectation is an initial movement of R$14 billion (US$ 2.6bn) annually and, in the future, tax revenue of R$20 billion (US$ 3.7bn).
A strongly regulated market with measures inspired by the best international practices is preferable to the current situation. The prohibition never worked in practice. With proper precautions, legalizing gambling will be better.
Source: O Globo
