The bill that legalizes casinos, bingo halls, and the jogo do bicho in Brazil has been under discussion in Parliament for over 30 years. During the opening session, Senator Rodrigo Pacheco highlighted this and stated that "the world and Brazil have undergone significant transformations, and this bill has also evolved considerably over all this time."
Pacheco noted that one of the central points of the discussions is bringing under state control an economic activity that already occurs illegally. "Recent estimates suggest that the gambling market in Brazil may have generated between R$ 14 billion (US$ 2.5bn) and R$ 31 billion (US$ 5.5bn) in 2023," demonstrating that the country can no longer leave this matter unresolved without a republican decision.
Senator Irajá, rapporteur of Bill 2,234/2022, assumed the presidency of the proceedings and made a strong case for the project, demonstrating the benefits of the activity in places worldwide where gambling has been legalized.
Irajá cited examples such as the economic power of gambling in Las Vegas, the United States, and countries like China, where the activity has been developed for years in Macau, and Singapore, which legalized gambling more recently and is already seeing its impact on tourism.
"It is impossible that the entire world is wrong and only Brazil is right in not legalizing gambling. We must say no to illegal gambling and yes to responsible gambling, with all the controls necessary to make it a relevant economic activity in the country."
Technical notes
The senator highlighted that the Ministries of Finance, Labor, Tourism, and Social Development have presented technical notes supporting the approval of Bill 2,234. "They recognized the strength of the sector and the potential for implementing in Brazil a new economic activity that is highly beneficial, both in terms of revenue generation and in attracting investments and creating jobs."
"The National Confederation of Commerce and entities representing the hotel, inn, and resort sectors, as well as tour operators, are also broadly in favor of the legalization and regulation of responsible gambling," he stated.
"The approval of Bill 2,234/2022 will be a turning point for Brazilian tourism. We will position Brazil on the international tourism map and ensure that tourists from around the world spend their dollars here in a new, regulated business environment," he emphasized.
According to the rapporteur, the bill was quite conservative in establishing a limited number of casinos per state, making it clear that the proposal is not to open an establishment on every corner, as opponents of the bill have claimed.
"Those who oppose legal gambling, in some way, favor illegal and clandestine gambling, thereby supporting organized crime," he declared.
Secretariat of Prizes and Betting (SPA)
In his presentation, Régis Dudena, Secretary of Prizes and Betting at the Ministry of Finance, stated that the Ministry is working on improving the business environment in Brazil, and the same can happen with the issue of legalizing casinos.
"There was a lesson learned with fixed-odds betting. Legalization without regulation led to social problems due to the gap during which the activity was carried out without control," he exemplified.
"From a regulatory perspective, I think it is possible to conclude that the bill brings opportunities and positive externalities, such as job creation, taxes, and investments for the country, and the tourism and events sectors will also greatly benefit," he said, stressing that it is important for gambling legalization to be carried out as it was with sports betting, "with technical regulation."
The tourism and hospitality industries were also present and unanimously reinforced the positive aspects of casino activity, with mentions of tourism growth, taxes, and income.
Manoel Cardoso Linhares, President of the Brazilian Hotel Industry Association (ABIH), was one of the most emphatic. He stated that the legalization of gambling is a "transformative opportunity for Brazil and will revolutionize Brazilian tourism and the economy. Today, the industry that generates the most jobs in the country is tourism, and with casinos, it will create many more."
Carlos Henrique Sobral, Secretary of Infrastructure, Credit, and Investments in Tourism at the Ministry of Tourism, enriched the debate in favor of gambling legalization with technical data and the benefits the activity brings to the economy.
He highlighted the increase in the number of tourists in various countries that have legalized casinos and pointed out that Brazil is missing out on billions of reais in revenue each year without the activity and is also missing out on the creation of hundreds of thousands of direct and indirect jobs.
Waldir Eustáquio Marques Jr., President of the International Gaming Association (Aigaming), shared his extensive knowledge of the gaming sector, focusing heavily on the technical aspects of good regulation.
According to him, it is imperative that regulation includes clear rules on responsible gambling, advertising, AML (Anti-Money Laundering), taxation, corporate social responsibility, bettor identification, and the prevention of cash transactions.
Waldir highlighted the difficulty in legalizing and regulating an economic activity that has been banned for 80 years and has a long history of clandestine operations. "The lack of regulation leads to a significant increase in illegal gambling offerings, and this needs to end."
For him, "the debate on this economic activity should not only focus on investments or revenues from new taxes and the thousands of direct and indirect jobs, as that will naturally come with the activity. The challenge is to have clear and defined rules for consumers."
At the end of his presentation, Waldir Marques reminded the audience of a quote from Supreme Court Justice André Mendonça: "Where there is no State, there is organized crime."
As expected, Senator Girão, who requested the debate, criticized the activity, pointing out a series of falsehoods, presenting them as "technical and true." He was supported by other speakers who reinforced the parliamentarian's backward position, appealing to religious or psychiatric aspects, such as Pastor Silas Malafaia, psychiatrist Hermano Tavares, and Senator Damares Alves, in addition to a businessman who claimed to have been cured of his gambling addiction.
Source: GMB
