“Caesars wants to invest US$ 2 billion to have three casinos in Brazil”

GMB - What is your evaluation of the future gaming market in Brazil?
Jan Jones- I think it is a great opportunity for Brazil to discuss a gaming law, which will promote not only tourism in Brazil but also economic development, with the creation of jobs, generation of taxes and the inclusion of a country of continental greatness in a thriving industry.

Do you think it's time for the country to finally regulate the casinos?
Without a doubt. I have already seen the regulation of gaming in several countries, and in all of them serious discussions ando me delays have taken place. I think Brazil is at a very advanced stage and that in a very short time the regulation will happen.

What are the objectives of Caesars Entertainment in relation to the Brazilian gaming market?
We think that Brazil is the greatest opportunity for expansion in the world and we are watching and monitoring the discussions of the legislation and offering technical subsidies to the parliamentarians so that they understand very well what our industry represents for the economy. We are not only showing the meaning of gaming itself, but also the importance of strict and serious regulation, and the adoption of consistent criteria for responsible gaming.

Has the Group already defined how many integrated resorts with casinos will install and operate in the country?
The law limits three casinos per group and our goal is to have all three licenses, which demonstrates our interest in Brazil and what the country will represent for our group from an investment point of view.

Are the regions that will have the Caesars brand in Brazil already defined?
We have looked at several regions, but for now the places that have most aroused our interest are Rio de Janeiro, Sao Paulo, Salvador and Brasilia. We still need to know more about other locations, but for now the four mentioned are where the assessments are more in-depth. As the law speaks of three concessions, we will have a very difficult decision ahead of us.

The idea is to join a local group or operate alone in Brazil?
We are always looking for local partners, who know well the peculiarities of each region. In Brazil it will not be different, even because we already have an operation in the country, which is the WSOP Circuit Brazil that gives us all the support we need to understand the local culture. To get an idea, the 2016 edition of the Brazilian stage of the World Poker Championship was the largest in the world outside of Las Vegas. It is important to have a partner.

What is the estimated investment of these projects?
It will depend a lot on the taxes to be defined, the incentives to be analyzed and also the places to be choen. But it will probably be more than US$ 2 billion.

What is your feeling about the current stage of discussions of the laws under analysis in the National Congress?
I believe the government has done an excellent job so far, seeking a regulatory and legal framework that will allow large foreign investments. I am sure that in the future they will be recognized for their technical ability to find the right people to attract these investments, and the fruit of that will be the development of a serious and well-regulated industry.

Do you believe that current political crisis can delay the beginning of the project implementation process?
Every political crisis hinders the progress of any project under discussion, but I am sure that the regulation will come in the near future.

Did you feel welcomed in your visits to the country?
Yes. I am very happy with the receptivity and interest of the people involved in the regulation project, especially because everyone wants a serious and consistent regulation, not just looking for gaming, but gaming as a tourism tool and economic development.

What is the business model that Caesars intends for Brazil?
The model will be full development, since gaming will be an accessory to a much larger complex, which will involve restaurants, a show arena, shopping mall and hotel. That is, an entertainment model. In Las Vegas, for example, only 20% of revenue comes from gaming. The other 80% represent the other activities.

Recently, Sheldon Adelson traveled to Brazil to analyze the market and at this time you are on your second visit to the country. Is it a clear demonstration of the interest of the gaming and entertainment industry in Brazil?
Yes. All international companies are open to Brazil. We will be back soon for a new visit to Sao Paulo. I see Brazil as the last great frontier for the gaming industry and we will reach it soon.

Source: Exclusive GMB
Author: Gildo Mazza