GMB - What is FENACTUR's position regarding legalization of gaming? How have you followed the progress of the bills in Congress? Do you think the country will have a law soon?
Michel Tuma Ness - To talk about the legalization of the activity, we have to do a retrospective on what happened to the gaming sector in Brazil. As many know, Brazil has lived through a time when the casinos were legalized and many older people should certainly miss the golden age of the famous "Casino of Urca".
It's no a secret that casino games are banned in Brazil. What few people may know is that such games have been considered games of chance since 1946, when the president at that time, General Eurico Gaspar, at the request of his religious wife, Carmela Dutra, who, because of his devotion to Catholicism, believed that casinos "ruined" people, hence the prohibition of casino gambling.
Casinos in Brazil arrived at the time of the empire, and in mid-1917 were banned, with the consolidation of the republic, but were again legalized in 1934 by President Getúlio Vargas. Finally, in 1946 by means of Decree-Law No. 9.215, all games of chance should be prohibited in all national territory regardless of the regulations. At the time, approximately 40,000 workers lost their jobs, and there was an intense decline in tourism and a downturn in the country's economy in all sectors.
Well, although we have lived a long period of prohibition of exploration of all types of games of chance, in reality we always live with gambling bets and the example of this are the Lotteries (State and Federal), bets on horse races ( in Jockey Clubs) and the famous jogo do bicho , which although illegal is perhaps the oldest betting game. It was invented in 1892, by Baron John Baptist Vianna Drummond.
The truth is that the Brazilian is passionate about gambling. It is no wonder that Caixa Econômica Federal holds the right to currently explore 9 (nine) types of betting games.
Thus, after the black phase in which gambling and especially when casinos were prevented from working, finally in 1994 came the first opportunity for the opening of so-called "games of chance." At that time the National Congress approved the so-called Zico Law that legalized the operation of bingo practice and directed part of the collection of money to sports entities, that is, everything that was related to sports. In 1998 a new "law" was published, entitled Lei Pelé, which in addition to revoking the Zico Law, dedicated a special chapter to bingo games (article 59, Law 9.615 / 98). Article 59 of the mentioned norm states the following expression: "Bingo games are permitted throughout the national territory under the terms of this Law." However, it happens that the Pelé Law, although regulating bingo games in Brazil , created a series of rules that made it impossible to accredit and supervise the existing bingos. In 2000, the Federal Government acknowledged its incapacity to accredit and supervise the bingos installed in Brazil. As a result, it eventually edited a Provisional Measure Some Entities say that the Maguite law was in fact to regulate the game in specific law and had no intention of banning the game, and as the standard was not approved until today the bingo houses are closed. In the middle of 2003/2004 President Lula intended to regulate bingo by reversing the collection for the development of the sport. However, a few days after its declaration, due to a complaint of corruption, Provisional Measure 168/2004 banning bingos and slot machines was issued.
The Ministry of Tourism places the regulation of casinos as an opportunity to improve the sector in the country. Can the ministry's interest in the topic help speed up the process of regulating the activity?
In fact, the theme has long aroused government interest and the truth should be told: The Ministry of Tourism has played a fundamental role in the demystification of the activity and proof of this was the presentation of the technical study to the Office of the Attorney General, the result of work set of Ministries of Tourism, Planning, Finance, Civil House and Justice, Civil House and Justice. "The activity of casinos is experiencing a substantial expansion around the world," he said. Many governments have seen casinos as a way to boost tourism, generate jobs and foreign exchange. We have an interministerial group that has been studying the subject deeply for several months, besides accompanying the discussions in the National Congress. Our intention today was to show the study to the attorney general and hear from him the criticisms and suggestions so that the process can begin to be examined within the new government. " The survey conducted by the group revealed that Brazil is among the 24% of UN countries that do not have legalized gaming. The document also presents suggestions for control and governance of the activity, such as the creation of a regulatory agency. According to Henrique Eduardo Alves, Rodrigo Janot was to send the material for the analysis of his technical team.
The generation of jobs is an important point addressed by the defenders of the activity. In tourism, what is the estimated number of jobs that can be generated once gaming is legalized?
All the studies that have been carried out indicate a great increase in the number of jobs. In order to have an idea of this, the activity is expected to move resources that will surpass the amount of more than USD 17 billion per year, with an estimated of USD 5 billion in tax collection. In addition, more than 150 thousand direct jobs will be generated throughout the country.
If we take into account that, according to data released by the President of the Legal Game Institute, Magno José de Souza, there are about 350 thousand people working with the Jogo do Bicho, added to the estimated 150 thousand direct jobs that will be created with legalization of gaming, we will have generated something around 500 thousand direct jobs only with the regulation of games of chance. With the displacement, accommodation and food of people who will surely enjoy the opportunity to have fun in casinos all over Brazil, it is estimated that at least 500 thousand more direct jobs will be created. Therefore, the legalization of casinos may result in the creation of more than ONE MILLION regular jobs. Recalling that a direct job represents the creation of five more indirect ones.
Among the legalization projects underway in Congress, which points are most interesting for to businessmen of the tourism sector?
In our view and also the ones that studied the topic, the legalization project is beneficial in its entirety because it brings innumerable benefits to Brazilians such as employment, income and development. On the other hand, the continuity of the current model with a lack of regulation has just another perverse effect: the resources obtained from the exploitation of the illegal gaming activity would serve, in many cases, to maintain the corruption of public agents, as the media has frequently disclosed.
How does the entity assess the interest of international investors in the country? Will this investment bring new competitors or more opportunities?
Something similar happened in the period when bingos were in operation, when part of the equipment was from abroad and a real "boom" of people interested in the exploration of the bingo game occurred. At that time, there was people coming from different parts of the world, and is to imagine that the same should happen now with casinos, among other types of games.
What is the perspective of the entity for tourism in Brazil after the approval of the gaming legalization?
As already mentioned, the displacement of people across the national territory must boost tourism as a whole. After all, we are a very large country with more than 8,500 kilometers of beach, a vast territory in natural beauty, where tourism is already being explored in a sustainable way (for example in Bonito, Mato Grosso do Sul, Fernando de Noronha, Pernambuco) and where the people who militate in tourism find their way of guaranteeing their livelihood, extending it to the next generations. That’s why it is expected that the release of the gaming activity will cause the movement already in progress to grow substantially. After all, new jobs must be created (direct and indirect), governments (at all levels) will have more resources and the economy as a whole will tend to grow and improve.
Source: GMB Exclusive
