LUN 6 DE MAYO DE 2024 - 01:46hs.
To reinforce public coffers

Economic crisis in pandemic time rekindles debate on gaming legalization in Brazil

The fiscal chasm that awaits Brazil in 2021, with a public debt that reached 90% of the gross domestic product (GDP) and a scenario of economic crisis aggravated by the COVID-19 pandemic, rekindled the debate on a controversial topic in Congress: the legalization of gambling in the country, with the construction of casinos in resort hotels and the release of other modalities, such as the very popular jogo do bicho, slots and bingo games.

The regularization of gambling has been discussed for almost three decades in Congress, considering Bill 442/1991, one of the oldest proposals in progress in the Chamber of Deputies and which initially intended to legalize the jogo do bicho. During that time, there was never a consensus on the advantages and disadvantages of legalization.

The main argument of the parliamentarians in favor is the revenue to be generated from the payment of taxes on the legal activity, which would reinforce the public coffers at a time of scarcity of resources and could be directed to ‘Bolsa Família’ aid program, or to implement the ‘Renda Cidadã’ (Citizen Income) proposal. In addition, thousands of direct and indirect jobs would be created in the states and municipalities that would receive projects similar to the casinos in Las Vegas (United States) or Punta del Este (Uruguay).

Senator Angelo Coronel (PSD-BA) is one of the defenders of legalization. “The generation of resources from the taxation of gambling could expand the reach of ‘Bolsa Família’ from 14 million families to 22 million, still increasing the average amount received from R$200 to R$300. This is equivalent to close to R$50 billion resources to fund the program increment. I believe that the funds raised should be used in the social area, in a basic income program, but that is up to the government's budget management. For Brazil, what matters is having the financial capacity to fund such a program,” said Angelo Coronel to Agência Senado.

Problems

Opponents, on the other hand, warn that the release of gambling can exacerbate health problems, with the high cost of treating heavy gamblers, in addition to increasing sexual exploitation and prostitution and worsening public security. They also believe that the activity would undermine actions to fight corruption, since, in their assessment, gambling can become tools for money laundering, tax evasion and revenue evasion.

“We know what interests are in the shadow of it all. Defending the liberation of gambling to finance social programs is a terrible mistake. ‘For every dollar raised from gambling, three are spent on social costs’ (Earl Grinols),” argued Senator Eduardo Girão (Pode-CE), via Twitter.

Girão is one of the biggest critics of legalization in the legislature. It was his idea to hold a cycle of public hearings to discuss the installation of casinos in resorts across the country, postponed because of the pandemic. In the senator's opinion, debates are a way of drawing the attention of society to the danger of liberation.

According to the parliamentarian, the legalization of gambling, drug and arms trafficking, prostitution, including child abuse, and other problems that help to "devastate families" become part of the daily life of the places where these spaces are located and opened to the public. The measure also opens the door to money laundering, corruption, and tax evasion, he warned in a speech last June.

Angelo Coronel does not believe in this scenario. “This is an impression of those who think that gambling will be legalized and will not be heavily regulated, a mistake. With strong regulation by the competent bodies, with restrictions on who can provide the activity and with the monitoring of money, the risk of illegal activities is equal to or less than in other economic sectors without such controls. The authorization to explore gambling will be made by the federal government, with limitations on who can exploit these activities, such as fiscal regularity, suitability and absence of convictions for money laundering, criminal organization and crimes against the financial system,” he defended.

Resorts

In the Federal Senate alone, there are four proposals on the subject. The most advanced in the House, ready for the Plenary agenda, is the Senate Bill 186/2014, by Senator Ciro Nogueira (PP-PI), which authorizes the exploitation of “games of fortune”, online or in person, throughout the national territory, including casinos in leisure complexes.

The text, which was unarchived in 2019 and underwent changes in commissions, provides for regulations of the ‘jogo do bicho’, videobingo, bingos, casinos in integrated leisure complexes, online casinos and sports and non-sports betting. The accreditation for the exploration of the game of bingo and videobingo will have a term of 20 years, renewable for the same period, and will be the responsibility of the states. Casinos, on the other hand, will be valid for 30 years and may be renewed for successive periods.

Leisure

In the same line is Bill 2,648 / 2019, by Senator Roberto Rocha (PSDB-MA), which authorizes the opening and operation of casinos in resorts or integrated leisure complexes. According to the text, the casinos will be able to operate in high-end hotels, which offer services such as spas, sports or leisure areas, nightclubs, museums, art galleries, theme or water parks, venues for meetings and social events. large, cultural or artistic, restaurants, bars and shopping centers.

In order to receive operating authorization (granted by the federal executive branch), according to the project, priority will be given to areas with the worst socioeconomic indicators in cities or regions, such as GDP, per capita income, Human Development Index (HDI), Gini coefficient (which measures income inequality) or unemployment rate.

The rapporteur at the Regional Development and Tourism Commission (CDR), Angelo Coronel, promised to present his analysis soon, but announced in an interview with Rádio Senado in late October that he defends the release of all types of gambling (jogo do bicho, slots, bingo), not just casinos.

“In my report to Bill 2,648 / 2019, I propose the legalization of all gambling forms, allowing more than 600 thousand formal jobs with casinos, jogo do bicho, bingo games, slots, etc .; collection of more than R$50 billion, a source of funds to benefit more than 22 million families with a monthly benefit of R$300; strong operational and financial oversight of the operators of these games; and encouraging public policies for responsible gambling, preventing gambling by people with ludopathy,” he explained.

Still to release gambling in resorts, there is Bill 4,495 / 2020, by senator Irajá (PSD-TO), which allows the implantation of resorts with casinos to help expand tourism, especially linked to business, in the country.

Like Roberto Rocha's project, the idea is to promote tourism with the construction of a new tourist infrastructure, to expand and improve international visitation to Brazil and participation in the market for international fairs and events.

Ecotourism

Also thinking about tourism, but with an ecological bias, Bill 595/2015, by ex-senator Donizetti Nogueira, intends to use the release of gambling to promote ecotourism and environmental protection in nature conservation units in Brazil, through management shared with casino hotels authorized to operate betting. According to the project, this authorization will be granted to the enterprise that invests in sustainable development, environmental protection, conservation of biodiversity and incentive to ecotourism.

The project also creates the Contribution for Intervention in the Economic Domain on the operation of casino hotels (Cide Verde), with an 18% rate on the difference between the gross bet and the prizes paid at the end of the year. The rapporteur of the text in the Economic Affairs Committee (CAE) is Senator Fernando Bezerra Coelho (MDB-PE), who proposed to combine this proposal with that of Ciro Nogueira.

Source: Agência Senado