The first speaker was the specialist lawyer Luis Felipe Maia, partner in the area of Technology, Gaming and Foreign Investment Law, at FYMSA Advogados. He described the current landscape of each game modality in Brazil and was concerned about the time that is being lost on the road to legalization: “We are arriving late to the ‘party’. We have to decide whether as a nation we want to benefit from this industry. If we want, we have to watch who does it right. It is necessary to have the correct taxation and incentives, otherwise it ends up making the operation unfeasible and if that happens, it is fueling the illegality. It has to be sustainable, viable and responsible. It is not gaming that is causing harm to Brazil. It is Brazil that has not yet decided to reap the benefits.”
The round table lasted almost an hour. While the other markets such as Chile, Argentina or Peru were OK with just one table, as people arrived Brazil needed to add two more tables so that no one was left out of the speakers' exposition. Among those interested in hearing and contributing their comments were Tommaso Di Chio (Associate General Counsel at Kambi), Fernando Garita (Business Development Director of Betcris), Roberto Brasil Fernandes (lawyer), Pedro Cortés and Óscar Madureira (lawyers of international firm Rato, Ling, Lei & Cortés), Daniel Homem de Carvalho (Secretary of the Special Law on Sports, Lottery and Entertainment Law of the Brazilian Bar Association), Olavo Salles da Silveira (ABRABINCS president).
“It is fearful and complicated that the draft of the Ministry of Economy is approved as it has been released. The text compels companies to contribute R$ 30 million for the amount of the license and that only operates with bets on football. Even though it is the most popular sport in Brazil, there are people who like to bet on MMA, Tennis, Basketball and other sports. This is a very bad problem as well as the payout on the turnover and not on the GGR,” explained Maia.
“On average, the Brazilian's perception on gaming is still contaminated by Hollywood films and misdemeanor. It does not yet have the real dimension of the activity, the level of seriousness, professionalism, compliance inspection, potential to generate wealth, employment, etc. I think we have an obligation, as an industry, to clarify to the population the impact of regulation of the activity. In Brazil, we are not discussing whether it will allow casino, bingo or any type of gaming because it already exists. The question is to do it right, collect taxes, protect the gambler who has an addiction and bring positive consequences to society. Or do we want to keep only the bad part?”, added the specialist lawyer.
Regarding the fear that many people still have in the face of legalization, Luiz Maia assured that “it is a much more responsible industry than that of tobacco or alcohol. If the gambler with addiction is registered in the self-exclusion register of the responsible gaming, but if he relapses and goes to the casino, they do not let the person play.”
Then, deputy Newton Cardoso Jr. said that “the role of Congress is to open the eyes to reality, that Brazil is on the margins of this sector so organized, so large. We have to sit down with Congressional leaders and say that those who are against legalization are in favor of illegal gambling. This has to become a mantra in there so that we can invest and direct efforts towards approval.”
“A Brazilian businessman generates 300 jobs for engineers in Spain and the other went to the Philippines and is the only supplier of gaming technology to the country. Our potential is huge and we are losing the possibility of generating jobs,” explained the president of the Tourism Commission of the Chamber of Deputies.
For his part, the state deputy for Minas Gerais, Alencar da Silveira Jr., also participates in the round table and expressed his opinion in favor of legalizing the activity: “There are business people here who left Brazil and went to the Philippines and Spain. Today, they are generating jobs there. I have 32 years of public life, now in my ninth term. We have been listening to the same conversation for 32 years. If Brazil does not combine all segments of gaming, from the casino to the jogo do bicho, to pressure the decision, we will never legalize. A law has to be made just for everyone. For casinos we think at the federal level, but bingo, slots, jogo do bichoand lottery each state will do its best to serve its population.”
Betcris CEO, JD Duarte, was one of Clarion Gaming’s guests to the round table. For him, “the presence of a congressman like Mr. Newton Cardoso Jr. here is very important. It is a pleasure to know that there is an opening to review, analyze and learn how the industry works. It is essential to propose to join the resorts sector with sports betting companies to wake up a proposal, an educational strategy that gives both the public and the legislators who should vote the laws, information about how it works our business and which would be the best way to regulate it. As an operator, what I believe is wrong is the lack of information about the way the way the Ministry of Economy is taking.”
Round Table repercussions
After the event, Games Magazine was able to talk to some of the assistants. Lawyer Pedro Cortez, said that "we do not have major developments yet, but I really liked the attitude of Congressman Newton Cardoso Jr. Discussions like this are important even outside the country for people to realize that there is an appetite for the market," he said.
“I think the deputy is an excellent spokesperson because we realize that he knows what he is talking about. This is important so that within the Chamber they are aware that we are talking about something beneficial for the economy. We are here talking about a regulated activity in a good part of the world and that, therefore, Brazil can only gain from it. It is a great opportunity that the country cannot miss,” added Cortez.
“The round table contributed a lot to the formation of our work. It is gratifying to participate in a table that has grown so much. It was expected to be one and there were four. The thought convergence saying that whoever is against the legalization of the activity in Brazil, is in favor of gaming continuing under the table. It is necessary for the sector to invest more in marketing to show more to society that it is now an organized sector, that has very solid compliance rules and that it can be a major contributor to the development of Brazil in relation to social policies as long as there is taxation of that activity,” said Deputy Cardoso Jr.
On the real possibilities to have a vote in favor when the projects are taken to the Chamber, Cardoso Jr informed that “the most recent statistic says that 60% of the congressmen are in favor of legalization. Certain countertops are against because of some taboos, which can be broken because they are not true. It is necessary for the sector to invest to show its reality. The segments of this industry could come together to speak to the media. The press has the role of taking this information to society and to the National Congress.”
Luiz Maia was also surprised by the great interest generated by the Brazil's round table. “What caught my attention was the public's interest in Brazil. This shows the potential that we have. What was clear was a very strong feeling of uncertainty, with doubt as to what will come in the direction of regulation. There is a great concern in relation to the tax burden, a possible limitation of the product portfolio, license guarantees… In general, it is a positive result, but there is still a strong waiting, anxiety and insecurity rhythm,” assured the lawyer to Games Magazine Brasil after the round table.
“It was very positive because it was a more crowded table. There were 30, 40 people listening, waiting for what will happen in Brazil. Only a little frustrating the government is announcing that it will regulate, but it does not move forward. They promised for March, but we don't know whether or not they will leave on the scheduled date. Everyone is watching Brazil, the sleeping giant. In the meantime, we wait for the regulations to see what the rules of the gaming sector will be. We hope it is positive. Certainly, I have never seen a round table as busy as yesterday's in all these years at ICE. I hope that the Brazilian government can also see this and help to implement clear rules that guarantee legal security, an investment opportunity,” said lawyer Neil Montgomery to Games Magazine Brasil.
Source: GMB
