GMB - As an entrepreneur who worked in the bingo industry when they were allowed in the country, what is your assessment of that period? Was there a route error that led to the end of the activity?
Fernando Mendes - The bingo game was started in Brazil some years ago, initially by Zico Law and followed by Pelé Law, and I am one of the people who started the activity in those distant years. What we can not overlook is that the game was abruptly ended and that put a hundred people in the streets, with no jobs. Only our company had more than 1,600 jobs at the time, all disabled from one day to the other. It is Worth to mention that there were some irregularities in tohse days and we have to consider that the authorities had a reason on that. We tried to normalize, regularize and do the right thing and unfortunately there was no success and the market was desintegrated. There was no inspection and government control. This situation has occurred in the past and I believe the authorities were right to end the activity in some way. But by analyzing well the situation, we see that they could have corrected the route and put a proper inspection, adjusting the legislation, which is what we expect to happen now.
Without the possibility of acting in Brazil for lack of the law, can you tell us a little about your current activities? Is there a plan to return to the Brazilian market after legalization?
Today, in Brazil, we are out of the game because as it is not regulated there is no way to move the activity. However, we are quite prepared for when the legislation is approved. We can enter the market with strong force making international partnerships and presenting a portfolio of 150 to 200 new games that we´ll intend to launch here in Brazil.
And what is your opinion about the current moment of the legalization process of the activity in Brazil?
The legalization process in Brazil has been developing for a long time and we wait with great expectation because it interests us, all Brazilians, including the government itself. It will bring a huge range of resources from the taxation and, at the same time, we will have a great opening in the labor market for the various specializations that the activity needs to develop efficiently. We are the only country with a continental dimension that has not yet legalized gaming. Europe, Asia, including the Middle East, incredible as it may seem, have regulations. Our South American neighbors have the correct and legal liberated market where it is possible to work and generate all kind of resources that an activity like this provides. I see this process with good eyes, mainly because we have homogenous group, very strong, that is working in favour of the activity. We hope that the government as soon as possible put it to the vote and we hope that stages are correctly fulfilled so tht we can have a legalized market that let us work and generate wealth for the country.
As in any debate, there are those who oppose the legalization, stating that it would open space for possible ilegal activities. What is your opinion on these arguments against the regulation of gaming?
All activity has benefits and harms. Look at the liquor industry: does it bring more harm or benefits? We do not know, we can not measure. In gaming it is possible to measure; and it brings more benefits. There is ludopathy, the compulsiveness of some people, as there are alcoholics, video game addicts, but we need to know how to differentiate and separate the wheat from the chaff. What matters is that in a macro analysis of the activity, it is more beneficial than evil. This is important to be put on the agenda and make it clear to everyone not to confuse gaming with money laundering, drug distribution. These things have nothing to do; who says this is a deep unknown of the gaming activity.
The main event that has fulfilled this function of promoting knowledge about the gaming activity is the Brasilian Gaming Congress, the BgC. What is your opinion about the congress?
No doubt Bgc is a welcome surprise that it has become an essential partner for the gaming activity. It is a very clear demonstration of the strength that the Brazilian market has worldwide because having a company like Clarion Events, known internationally and an exponent of fairs and gaming events, in Brazil promoting an event for us really shows that we have a big market and a partner of the same size. The presence of Clarion evidence that Brazil is the great market to be explored and has everything to meet expectations.
As an entrepreneur, in your opinion, what should be the position of the gaming business sector to help accelerate this process of legalization? Do you consider there is a lack any kind of incentive for entrepreneurs to be more active in this debate?
Entrepreneurs need to be aware and must do their part. We must develop correct programs, with certification, invest properly. And the government also needs to give us a parallel, to draw a limitation on what can be put on the market. In fact, until now that point has been discussed, but no one knows exactly what will happen. The government has N suggestions, but I have not really been able to identify anyone who could clarify what will be decided and voted in the National Congress so that we can prepare and start the gaming programs processes, set up business groups to face the great competition that is to come, etc...
What kind of competition do Brazilian businessmen expect to face after the legalization of the market?
We, Brazilians, will have to face external competition. I'm sure we're prepared for it, and very well prepared, contrary to what many people suppose. But it would be a good reception for us if the government signaled: "we’ll legalize gaming" and we would begin the first steps towards this fierce competition that will be between Brazilian businessmen and foreigners.
Source: Exclusive GMB
