LUN 23 DE SEPTIEMBRE DE 2024 - 15:31hs.
Proposal defended by Tourism Minister, Celso Sabino

Regulation of bingo, casinos and jogo do bicho divides the government

A bill is currently being processed in the Senate that provides for the regulation of gambling, with the legalization of bingo, casinos, jogo do bicho and betting on horse races in Brazil. The proposal was defended last week by Minister of Tourism, Celso Sabino. The issue is controversial in light of the government's latest initiatives, which have been taking measures to block illegal betting websites and apps. Although it has great revenue-raising potential, the legalization also raises concerns.

The exploration of gambling in Brazil has been prohibited since 1946. The proposal provides for the permission to install casinos in tourist centers or in integrated leisure complexes, such as high-end hotels (with at least 100 rooms), restaurants, bars and venues for meetings and cultural events.

The text also proposes the possible issuance of a license for a casino in each state and in the Federal District. Some states would be exempt, such as São Paulo, which could have up to three casinos, and Minas Gerais, Rio de Janeiro, Amazonas and Pará, with up to two each, based on the size of the population or territory.

The regulation of casinos is already a reality in several countries, where the activity is duly supervised and legalized. In these nations, the sector is an important source of revenue, generating jobs and boosting tourism. Countries such as the United States and Portugal, for example, have shown that, when managed correctly, casinos can contribute significantly to economic growth.

For the Minister of Tourism, legalization could transform Brazil into a new international tourism hub; the idea is to allow resorts with integrated casinos to be installed in little-visited tourist locations. Sabino criticized the restrictions and even compared the ban on gambling to the idea of ??preventing the use of cars due to traffic accidents.

"The number of traffic accidents on Brazilian roads is very high, but that doesn't mean we're going to ban motor vehicles in Brazil," he said last Friday, after the official opening of the G20 Tourism in Belém (PA). According to him, the proposal is also designed to minimize the risk of addiction.

For Felipe Crisafulli, a specialist in sports and gaming law and a partner at Ambiel Advogados, the regulation of casinos and jogo do bicho follows the same logic as the recent regulation of sports betting, which is currently being implemented. "Instead of the country fighting against this and, in the end, just mopping up water in a cat and dog fight, it would be better to regulate the matter and, with that, earn revenue from the respective taxes and protect the rights of players, as consumers," he says.

With clear rules, Crisafulli says that the gaming sector could be monitored and taxed, generating jobs and income. "Therefore, the advantages of regulation mainly correspond to the fact that these activities would be within the state, instead of remaining in the shadow economy. This will allow the federal government to monitor them more closely, especially their operators and players, in addition to generating new money for the treasury and preventing the practice of certain crimes, such as money laundering", he highlights.

Regulation of bingo and other betting activities would include the creation of two new taxes, the Gaming and Betting Inspection Tax and the Cide-Jogos (Tafija) — a contribution from Intervention in the Economic Domain levied on the sale of games.

Criminal lawyer Amanda Silva Santos, from Wilton Gomes Advogados, believes that regulation would be a way for the government to earn taxes that are currently lost to illegality. "In addition to creating jobs and boosting the tourism industry, it could generate new investments and economic benefits linked to tax revenues," she points out.

Addiction and debt

As the gambling market grows, cases of gambling addiction and debt also increase. A study conducted by the Department of Psychiatry at the University of São Paulo (USP) indicates that Brazil has an average of two million people addicted to gambling — a disorder called ludomania. According to the World Health Organization (WHO), compulsive gambling is like a disease, along with alcohol addiction, for example.

The gambling epidemic has mobilized the government, which has developed ways to discourage addiction. The Ministry of Finance has published an ordinance that foresees the exclusion, starting next month, of platforms that do not request formal authorization to operate in Brazil. The head of the ministry, Minister Fernando Haddad, said that he is partnering with the Ministry of Health to address the issue.

According to economist Otto Nogami, a professor at the Institute of Education and Research (Insper), despite the possible benefits, the regulation of gambling is questionable.

"There is a legitimate fear that the expansion of gambling will increase the incidence of problems such as gambling addiction, which can lead to serious financial and social problems for the individuals affected. This could have profound social implications, such as an increase in personal debt and the deterioration of the living conditions of affected families," he says.

A recent survey by the National Confederation of Commerce of Goods, Services and Tourism (CNC) indicated that more than 1.3 million Brazilians have defaulted on their debts due to betting in online casinos. Approximately R$68 billion (US$ 12.3bn) was spent on gambling between 2023 and 2024, which represents 0.62% of the Gross Domestic Product (GDP) and 22% of the total wage bill.

Nogami stressed that the debate on the legalization and regulation of casinos and jogo do bicho in the country requires careful analysis. "Although the potential economic and revenue gains are tempting, it is necessary to ensure that the country adopts a strict regulatory structure that mitigates social risks and guarantees protection for vulnerable players," he notes.

"International experience can serve as a guide, but Brazil needs to adapt its policies to local realities, taking into account the risks of increased addiction and the long-term social impacts," he concludes.

The gambling bill was approved by the Senate's Constitution and Justice Committee (CCJ) at the end of June with a tight vote, with 14 votes in favor and 12 against. The proposal is still being processed in the House, with no prospect of a final vote. President Luiz Inácio Lula da Silva has already indicated that he will sanction it, if approved. However, the Workers Party's member stated that this is not "what will save the country" in terms of revenue and job creation.

Source: Correio Braziliense