Fabio Ferreira Kujawski, a partner at Mattos Filho Advogados will be at the BgC on April 23rd leading the debates of SOW-THE-SEEDS: REGULATORY AGENCY that will deal with the creation of a regulatory agency: the main requirements and tools available for regulation sustainable and reliable investment that attracts long-term investments and builds trust within the consumer base. The panel will be completed by: Paulo Duarte Lopes, Director of Planning and Control of Gaming Activities of the Ministry of Tourism of Portugal, and Pedro Cortés, Senior Partner of Rato, Ling, Lei & Cortés - Lawyers and Notaries.
GMB - How is your office involved with the gaming industry and how you intend to moderate at BgC a panel that will "play seeds" to create a regulatory agency. Is Brazilian soil already fertile for "harvesting"?
Fabio Ferreira Kujawski - Mattos Filho is a full service office that serves clients in all areas of law. Our market position puts us in a privileged position to serve the gaming industry. Our activities can take place both in the structuring of companies that will operate in gaming, financing, bidding, tax planning, real estate, compliance, intellectual property, as well as corporate arrangements among the partners of the venture. We have discussed the opportunity with clients in different sectors related to gaming, mainly groups interested in casinos, lotteries and betting. Another relevant focus of discussion is the part of online gaming, which we have great experience with companies in the digital world. We believe that the soil is already fertile in Brazil. We intend to moderate the panel demonstrating the viability of the Brazilian market, with examples of successful regulatory models in other jurisdictions.
Is it not a very arid soil, for having lived 72 years without regulated activity, except during the short ten-year period when the bingos were authorized?
The fact that Brazil has not had a regulated gaming market in recent decades is certainly challenging. However, it seems to us that the country is mature to exploit the gaming market as a legitimate source of revenue and jobs, removing from illegality an expressive market share that already exists today, despite the ban. The Brazil of 2018 is not the same as in 1946 and it is no longer possible to justify the prohibition of games based on "good manners". We are confident that Brazilian society is ready to benefit from a serious model of gaming exploration that favors the generation of jobs and tax revenue. The bingo experience was relevant to demonstrate the enormous potential of this market.
Is BgC the best venue to share such ideas and show the importance of regulating gaming activity?
We believe BgC is an excellent forum for discussing the importance of industry regulation by bringing together diverse market stakeholders, including the legislative branch responsible for approving the law.
To regulate only casinos, as the Chamber of Deputies wants, is the best way, or would it be better to pass a broad law for the gaming industry?
There are pros and cons in both scenarios. Initially, opening all modes of gambling at once imposes a challenge to the government, in order to effectively be organized to control all the activities that will be performed by the various agents. On the other hand, flexibilizing only one type of gaming can limit the benefits that broad openness could generate, especially in the issue of employment generation and tax revenue. Anyway, the important thing is to take the first step. It makes no sense for Brazil to be one of the few non-Muslim countries to not legalize gambling. We lose opportunities and competitiveness.
The benefits of responsible gambling are not properly addressed in the legislative debate. On the Federal Senate Constitution and Justice Commission, some senators opposed to the bill brought testimony from people addicted to gambling, with sad stories of family dismantling eventually attributed to gambling addiction. It is a distorted, biased and partial view. The same logic could apply, for example, to other products, such as alcohol. There will always be the story of someone who has become an alcoholic, who has run over someone under the effect of that substance, and so on. It is not a question of prohibiting the sale of alcohol. What is controlled is inappropriate behavior resulting from abuse.
Thus, the driver's license is discarded from those who drive drunk, the sale of the product is restricted to adults, among other measures. With gaming is no different. The compulsive gambler is controlled. Both bills contain rules against compulsive gambling. Thus, access to those whose psychic characteristics are incompatible with gambling is limited or even prohibited, but healthy access to this activity is granted to those who are able to devote it.
Important international groups want to enter Brazil. If there is not a very consistent regulation will they invest in this market?
In conversations with relevant groups in the gaming market, we note that the absence of adequate regulation raises many doubts and prevents serious investments that could have already happened in Brazil. It is important to note that Brazil is not the only country in which this discussion is taking place at the moment. Without proper regulation of the gaming market, investments will migrate to other more favorable and stable jurisdictions.
How to show the Brazilian authorities the importance of regulation and the infinite possibilities of tax collection and job creation?
We understand that the best way to sensitize the Brazilian authorities is through impartial studies that address the economic benefits of the release of the activity. It is worth noting that the benefits are not only achievable by gaming operators. Often entire industries dedicated to entertainment, machine manufacturing, business tourism, gastronomy and services benefit from the opening of this sector.
Source: Exclusive GMB
