During the ministerial meeting on April 22, 2020, which was released by decision of the Supreme Federal Court (STF), former Minister of Tourism, Marcelo Álvaro Antônio, said that Brazil should "discuss the resorts integrated with casinos." However, the speech motivated a reaction by the Minister of Women, Family and Human Rights, Damares Alves, who considered the idea a “pact with the devil.”
Months after the episode, Álvaro Antônio was succeeded by Gilson Machado in office, but the opinion of the leadership of the Ministry of Tourism has not changed. “We went to the United States to study the success story of the legalization of casinos there. In Brazil, it is up to Congress, but I know that, if approved, it can bring a lot of investment,” said Machado.
Legalization pending in Congress
Bill 2648, of 2019, authored by Senator Roberto Rocha (PSDB / MA), is one of the most advanced texts in the Senate on the regulation of so-called “games of chance”. It provides for the “exploration of casinos for a specific time and operation of games authorized by the Union only in integrated leisure complexes [resorts]”.
The Bill argues that the revenue to be generated from the payment of taxes on legal gambling would strengthen public coffers at a time of scarcity of resources and could be directed to, among other means, social programs.
The project's rapporteur Senator Ângelo Coronel (PSD-BA) told public affairs firm Arko Advice that it was essential for the country to discuss how to raise new revenues without having to increase taxes. “The current pandemic moment requires greater fundraising, but without increasing taxes. In this way, the project can be a means of leveraging the country's economic recovery.” According to him, there is still no concrete date for the vote on the merits, however, the report of the text must be presented to the House “in the next few days.”
The Bill establishes that only high-end hotels with places for large-scale social, cultural or artistic meetings and events, restaurants and bars and shopping centers can enjoy regularization.
According to the text, the authorization to operate and define the tax burden - values and types of taxes - will be the responsibility of the Executive. In addition, priority will be given to the Brazilian areas that present the worst socioeconomic indicators of municipalities or regions, such as Gross Domestic Product (GDP - linked to tax collection), per capita income (average income of a population in a given period), Human Development Index (HDI - unit that assesses levels of education, security, etc.), Gini coefficient (which measures income inequality) or unemployment rate (individuals without formal remuneration activity).
According to a 2017 survey by the Institute of Applied Economic Research (IPEA), the states of Alagoas, Maranhão, Piauí, Pará and Sergipe are the worst placed in the HDI ranking in the country.
Cost of Citizen Income aid program
Even though the main objective of the projects on the theme is to generate new revenues and new jobs, the possibility of the resources obtained from casinos to finance the Citizen Income (Renda Cidadã) aid program has gained strength.
Citizen Income is the new proposal for a social program by the Federal Government that intends to replace the similar ‘Bolsa Família’, increase the number of people served and increase the amount of the benefit - which is currently almost R$ 200. There is still no exact date for the idea to get off the ground. After all, for that to happen, it is necessary to convince Congress to approve a proposal for funding. There was a plan to insert in the Emergency PEC, approved in March this year, the creation of the social program. However, the lack of consensus on the source of funds for the creation of Citizen Income, after several times postponing the presentation of the project, took it to the drawer.
“The generation of resources from the taxation of gaming 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 in resources to fund the increase of the program,” said Coronel.
Roberto Rocha's proposal is not the only one in the Senate
In addition to Bill 2648/19, there are other proposals on the topic in the Senate. For example, BillsS 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 for local popular jogo do bicho, video bingo, bingos, casinos in integrated leisure complexes, online casinos and sports and non-sports betting. The accreditation for the exploration of bingo games and video bingo will have a term of 20 years, renewable for the same period. Casinos, on the other hand, will be valid for 30 years and may be renewed for successive periods. In this project, however, the authorization will fall to the Brazilian states, and not to the Union as proposed by Senator Roberto Rocha.
According to Senator Angelo Coronel, it is possible that, in order to speed up the process of the issue at the House, the Nogueira and Rocha projects will be merged. “All the projects that went through the Congress can be used. I was careful to read them all and collect suggestions for our report,” he told Arko.
Casinos yes, overdose no
In the view of the former Secretary of State for Tourism in Rio de Janeiro and currently a federal deputy, Otávio Leite (PSDB-RJ), it is unacceptable that Brazil has not yet regularized the activity of casinos. However, Leite believes that the topic is more acceptable in the eyes of the public debate. “It doesn't make any sense for Brazil not to have casinos yet. Our country is one of the most sought-after destinations by foreigners, but it does not offer this type of service,” he told Arko.
“The debate is more mature, and it can evolve. It is not a question of whether we allow gambling in the country, but how this permission will be given. For example, today, in my opinion, casinos should be allowed mainly for tourists. Later, we can talk about broader legalization,” he said.
The deputy, however, said that gambling overdoses should be avoided. “The casino may be another attraction for the traveler to come to Brazil, but it must also not be released to the point of allowing an overdose of bets. Therefore, the authorization of this practice must be widely negotiated between the powers.”
Gaming and corruption
Although the subject is gaining support among the political class, there are also severe opponents to the legalization of casinos. According to Senator Eduardo Girão (Pode-CE), for example, the authorization of the activity by the government would “open the door to corruption.”
“The liberation of gaming in Brazil is a big problem. This theme that is approaching the Congress aims to create problems instead of solutions. With the activity comes drug trafficking, arms trafficking, including child prostitution. It is no coincidence that the federal police, the Federal Revenue Service and the Lava Jato operation are against the legalization of gambling,” he said.
Source: Pedro Costa Teodoro – O Brasilianista
