After spending the last three years with strong expectations that Brazil would finally release gambling, major industry representatives are divided over the contradictory messages of the new government on the subject.
Since 2015, when the Chamber of Deputies has set up a special commission on the regulatory framework for gaming, to analyze proposals for legalization of bingos, casinos, jogo do bicho and other modalities, multinationals in the industry have invested time and money in the promise of opening the Brazilian market. They hired local lawyers, set up industry conferences, and sent their top executives and lobbyists to follow the proceedings.
Some of the big names in the industry that visited the country were Sheldon Adelson, a casino mogul and friend of US President Donald Trump, and former Las Vegas mayor Jan Jones Blackhurst - the head of the casino relations department's government relations department - Caesars Entertainment.
The assessment of potential investors was that Brazil was closer than ever to a liberalization, with the advanced passage of two bills to create the legal framework (PL 442/91 in the Chamber and PLS 186/2014 , in the Senate). In an interview with Valor Econômico newspaper last week, Mayor Rodrigo Maia (DEM-RJ) once again cited the approval of gaming as one of the topics in his agenda horizon.
What is known about Bolsonaro, is that during an event at the Rio de Janeiro Commercial Association in May last year, when he was still a pre-candidate, he was against gaming but said he was open to debate. "What have we studied there? There is a possibility that each state decides what to do on this subject. It’s too early to argue. I particularly, at first, am against. But it can surely be discussed," said Bolsonaro at the time.
At the time, he was not specific about casinos, a point of interest for multinationals such as Adelson's company, Sands (owner of the Venetian in Las Vegas), and MGM Resorts (Bellagio). But he was clear on games like slot machines.
"There must be a rule, some clear measures. We can not afford to open venues with slots anywhere. For example: someone goes to the bakery and, instead of bringing the bread home, throws the money in a slot machine. In the first moment I am against, but people have come to me saying that each state should decide the question of casinos," said Bolsonaro at the time.
Before the second round of the presidential election, the then candidate broadcast a video on social networks denying the possibility. "I'm going to legalize casinos in Brazil? Can you believe such a lie? We know that the casino here in Brazil, if it had been, would be a great laundry, would be used to launder money. And also to destroy families. Many people would give themselves to the game, and chaos would be present at the bosom of families."
The former Las Vegas mayor, however, retained his positive expectations, saying that the industry is encouraged by the liberal economic project defended by the president.
Despite Bolsonaro's conservative standard in relation to gambling, the sector bets on the open profile of the economy, represented by the minister Paulo Guedes. The gambling industry believes that its potential for job creation and tax collection, a theme in line with the president's speech, may attract the sympathy of the new government. "Caesars is eager to work with the [Bolsonaro] administration to legalize integrated casino-resorts," Blackhurst says.
The president of Portuguese Cassino Estoril, Mário Ferreira, who has personally followed the progress of the congressional process in recent years, says the delay frustrates the foreign investor. "Whatever the governmental solution, Brazil needs someone with decision-making capacity who knows how to say yes or no."
For now, it is possible to estimate that there will be more resistance to some categories of gamings, such as bingo and jogo do bicho, according to Luiz Felipe Maia, a lawyer specializing in the sector. "In society and in the legislature, there is more prejudice in relation to these operations, which are seen as more difficult to control and oversee," says the lawyer.
The lobby of the big resorts is pushing for a less comprehensive legislation, that is, that does not release in Brazil also the local popular jogo do bicho and slots. For these groups, it is enough to be allowed the casinos integrated to hotels, because it is in the sale of daily, concerts, fairs and business events that much of their revenue.
Magno Sousa, president of the IJL (Legal Gambling Institute), who advocates the liberation of all modalities, says that legalization restricted to casinos would not solve the problem of clandestine gambling, as well as limiting the potential for collecting and generating jobs. Projections from the IJL estimate that, annually, Brazil moves in clandestine bets US$3.17 billion with jogo do bicho and US$955 million with slots. "If all the modalities were released, the game would generate 697,000 jobs. But if only the casinos were released, there would be only 20,000 jobs," says Sousa.
Source: GMB / Folha
