GMB - What impression did you get from BgC 2018? How did you perceive the attendees on the current situation of legalization process? Optimistic, pessimistic, worried..?
Michael Pollock - The overall sense was one of cautious optimism. There is clear frustration that the process has taken so long, but there appears to be hope that patience is paying off, and that Brazil will proceed with a carefully constructed gaming law.
The tax issue was a key aspect of your dissertation. Are you worried about this topic in the future gaming legalization in Brazil?
The tax rate is the key issue in any gaming jurisdiction that can determine the success of legalized gaming. I am not worried in that the lawmakers and other stakeholders appear to fully understand the goal: If they seek integrated resorts, they recognize that an attractive tax rate offers the best means of ensuring significant capital investment. They also understand that taxes and capital investment are a trade-off: a low tax rate without significant investment is also a lost opportunity. The two must work in tandem.
Do you think the talk with the legislators during the ILA was positive?
I believe we addressed a wide variety of viewpoints. Yes, it was positive because lawmakers and other stakeholders understand that we were not promoting gaming, but were merely promoting best practices.
During that meeting, politicians opposed to gaming burst into the room at a time that was somewhat tense, however you thought it was useful that they were also present. Why?
Gaming is an important policy consideration that will have an impact for many years on Brazil’s economy and social structure. It is critical that all viewpoints be heard and addressed. The wider the debate, the better the policy will likely be, if all sides understand that they have had a seat at the table, and that their concerns have been addressed to some reasonable extent.
Do you feel that something more and better could be done to speed the sanction of a definitive law that legalizes gaming? Who should accelerate more at this stance?
Speed is not the goal. Getting it right is far more important. We fully understand that the political leadership needs a comfort level with the policy, and that forthcoming elections will play a role. This is a time for patience, and for thoughtful discussions.
After the last road show and the publication of the edicts, is Spectrum still interested being involved with some consortium for the LOTEX concession?
Spectrum is committed to best practices in gaming, and we will bring our experience to bear in any meaningful way.
Source: Exclusive GMB
