In recent years, the discussion about the legalization of gambling in Brazil has gained prominence, especially regarding the creation of casinos integrated with convention centers and hotels. The approval of Bill 2,232/2022 not only promises to bring a new form of entertainment but also a significant economic impact in the regions where these enterprises are established.
A new horizon
The total investment for an integrated casino can vary considerably, estimated to range between R$ 200 million (US$ 36.4m) and R$ 800 million (US$ 145.4m) per unit. These values cover the construction of the physical facilities, including the casino itself, the hotel, the convention center, and supporting infrastructure such as restaurants and entertainment areas.
Additionally, costs related to furniture and decoration are considered, which play a crucial role in attracting and providing comfort to visitors.
To illustrate, in the Middle East, where casinos have recently become regulated—despite some legal and cultural restrictions on games of chance in most countries in the region—we are witnessing the construction of the "City of Dreams" in Dubai, set to open in 2026 with a budget of around US$4 billion. This project promises to be a significant addition to the region's entertainment and tourism sector, offering a wide range of attractions and entertainment options.
Job creation
The establishment of integrated casinos can generate a significant number of jobs. Each casino can create between 3,000 and 8,000 direct jobs, covering various roles, such as:
- Game operators and casino staff: Responsible for the daily operations of the casino, ensuring compliance with regulations and providing a safe and enjoyable gaming experience.
- Hospitality and customer service staff: Includes receptionists, housekeeping staff, concierge services, and restaurant and bar attendants.
- Security personnel: In charge of the safety of the casino and its guests, monitoring gaming areas and other parts of the complex.
- Event and convention center team: Includes event organizers, audiovisual technicians, and support staff for conferences and other activities.
Considering all states and the Federal District, the projections are impressive:
- Minimum direct jobs: 81,000 positions
- Maximum direct jobs: 216,000 positions
In addition to direct jobs, casinos also have the potential to generate a significant number of indirect jobs, ranging from 5,000 to 10,000 positions per unit, in the following areas:
- Furniture and decoration industry: The demand for high-quality furniture and equipment for the casino and hotel can boost the furniture and decoration sector.
- Maintenance and cleaning services: Companies specializing in the upkeep and cleaning of facilities.
- Local suppliers: Inclusion of suppliers for food and beverages, cleaning products, and other essential services.
Thus, the projections for indirect jobs are:
- Minimum indirect jobs: 135,000 positions
- Maximum indirect jobs: 270,000 positions
This multiplier effect is crucial for strengthening the local economy, benefiting sectors such as tourism, commerce, and services.
Impact on tourism
The legalization of integrated casinos can also have a significant impact on Brazilian tourism. With diverse attractions and events held at convention centers associated with the casinos, it is expected that more tourists will visit the cities where these establishments are located.
The experience accumulated in destinations like Macau and Las Vegas demonstrates that the gaming industry can be a powerful catalyst for tourism, generating substantial revenue and stimulating economic development.
Opportunity to debate public policies
The legalization of casinos offers a unique opportunity to bring important issues to light related to responsible gambling and money laundering prevention.
The regulation of this sector should include strict guidelines that ensure transparent and safe practices.
Anti-money laundering policies
The creation of a clear regulatory framework helps prevent illicit activities associated with gaming by establishing procedures for financial monitoring and mandatory reporting.
Responsible gambling
It is crucial to implement educational programs that promote responsible gambling, inform players and society about the risks involved, and encourage healthy behaviors.
Treatment of compulsive disorders
Partnerships with specialized institutions will facilitate access to treatments for those who develop problems related to compulsive gambling, ensuring adequate psychological support.
These measures will not only protect consumers but will also significantly contribute to a positive image of the gaming industry in Brazil.
Summary of averages: an overview
To provide a clearer view of the expected economic impacts with the implementation of these casinos, considering only one per state and in the Federal District, we can summarize the data in averages:
- Average total investment: R$ 13 billion (US$ 2.4bn)
- Average direct jobs: 148,500 positions
- Average indirect jobs: 202,500 positions
These averages highlight the transformative potential that integrated casinos can have on the Brazilian economy.
Conclusion: a step toward the future
The legalization of integrated casinos in Brazil represents a significant opportunity to boost the national economy through investment and job creation.
With a potential impact that extends across the entire country, this initiative is a crucial step for the economic and tourism development of the nation.
Furthermore, this proposal could help diversify state revenues, contributing to investments in areas such as tourism, health, education, and sports, among others.
Therefore, as the discussion on legalization advances, it is essential to consider not only the immediate economic benefits but also the positive legacy these enterprises can leave for future generations.
Paulo Horn
Founding partner of Paiva & Horn Advogados Associados. President of the Commission of Sports, Lotteries, and Entertainment Games of the Brazilian Bar Association (OAB/RJ), Member of the Brazilian Association of Political and Electoral Law (ABRADEP), and the Constitutional Law Commission of OAB/RJ. He has held positions as administrative and financial director, chief legal advisor, and vice-president of the State Lottery of Rio de Janeiro (Loterj). He holds a Master's degree in Urban Law from UERJ.
