Increasing the collection and investment capacity of the public authorities without increasing taxes is one of the main challenges for governments, throughout Brazil. A difficult equation, as the country - and the other spheres of governance - are already working at the limit, with one of the highest tax burdens on the planet.
It is precisely in this context of creating new tax alternatives for the states (and indirectly for the municipalities) that the recent decision of the STF, that Lottery is a public service provision and can be explored by the States, equivalent to the model practiced, should be received and celebrated by the federal government.
With the decision, not only a new and promising frontier was opened for the federated entities, but the necessary conditions were established for the installation of a new and powerful entertainment industry in the country. This means a new way of heating up economic activity, generating jobs and income and increasing revenue, which also becomes investment, in a virtuous cycle that cannot be ignored.
There are many different accounts being made about the democratizing effect of the Supreme Court decision. From a national point of view, a short-term result of several billion reais / year is believed. From the specific point of view of Minas Gerais, the expectation is for a significant increase in revenue so that more and more resources are allocated to social programs managed by the State Government.
If, however, the country confirms the majority tendency of the National Congress to regulate gambling in Brazil, then this conversation changes a lot in size, since studies by specialists estimate, today, a national market of the size of R$60 billion (US$10.7b) a year, with all gaming modalities working strictly regulated.
Considering the precariousness of public revenues at this point, it is simply incomprehensible that the country does not regulate its activity and allows a new industry to flourish. It never hurts to remember that entertainment games work legally and regularly in almost every modern country on the planet, spinning a multi-million dollar / year product.
At this point, it is necessary to end the ideologization of the theme and remove prejudices that still exist in the religious and moral fields, which have nothing to do with the reality of a modern, technological, clean multinational industry that works today with strict controls and with potential to generate results in Brazil.
Ronan Moreira
Loteria Mineira general director
