Jair Bolsonaro has been elected as the 38th President of Brazil, however, it is still uncertain how this will impact on the Gambling legalization.
There are pros and cons involving Bolsonaro's election.
For the cons side, he had major support of many religious sectors and religious party members of the Brazilian Congress. These people often are against the legalization of Gambling, since it would - in theory - affect the morals and costumes. In addition, he has declared in a live streaming before being elected that he does not intend to approve the legalization of gambling. After he was elected he has not declared anything about the subject.
However, and now in the pros perspective, in previous interviews he said that gambling could be legalized in a federalized way, in other words, the initiative to legalize it would be delegated from the Federal Government to the State Governments, similar to what happens in the USA. He said: “There is a possibility, and I say a possibility, of delegating it to each State to decide. At first, I am against it (the legalization), however, let's see what is the best way to be followed". This could be very interesting, especially considering the size of the country, as well as the peculiarities of each State.
During his presidential campaign Bolsonaro has visited the USA and had conversations with Brazilians who live there. He has a lot of respect towards the USA, and one of his goals is to have close relations with the USA. This can also be a plus side for the attraction of legalization of Gambling in Brazil, especially with integrated Casino Resorts. In addition, President Donald Trump called Bolsonaro at the day he was elected to congratulate him, and also tweeted about it.
The elected President needs to understand that the country needs the legalization. It has been proved that that is no way of having a "non gambling" society. It's possible to have a "legal gambling" society or a "non legal gambling" society, in which the Government does not collect taxes and therefore fails to channel incomes that could be reverted to the Brazilian society
Also, Bolsonaro has made a change in his economical beliefs during the past years, what has contributed to his popularity rise. He has indicated Paulo Guedes as his Finance Minister - a Liberal from the University of Chicago.
Guedes is a very important member of the Government, and if he - in accordance to his liberal beliefs - believes that the legalization of Gambling can be positive to the Brazilian finances, he might push the agenda forward along with Bolsonaro, who has shown a lot of respect towards economic related positions of Paulo Guedes.
The legalization has everything to do with the liberal wishes of Bolsonaro, however, could find a barrier with regards to his personal and religious beliefs. He has however shown that he will do what's in the best interest of the country. This means that if the Brazilian Congress approves a gambling legalization, he could respect the decision, and also if it is demonstrated that it is something positive for the Country's finances, he can support it.
There is still a lot to happen, but it is surely possible to have great expectations about Bolsonaro's years ahead of Brazil.
Marcelo Munhoz da Rocha
Advisor at BetConsult
