FecomercioSP sees economic boost and benefits with legalization of casinos and games in Brazil

Banned in Brazil for about 80 years, the issue of legalizing and exploiting gambling in the country was again discussed in the National Congress. Brazil, according to a survey conducted by the Instituto Jogo Legal, is the largest exporter of casino players in the world, with about 300,000 people traveling abroad each year in search of these activities.

The subject again comes with a new fact in favor of its defenders: the need to create jobs in the face of worrying indicators resulting from the ongoing economic crisis.

Unlike what happened in other countries that coexist harmoniously with the business, it is worth remembering that since its “ban” in Brazil in 1946, gambling still faces ethical and moral prejudices. With the ban, dozens of casinos and, consequently, thousands of formal jobs have been shut down, with several negative consequences – especially in tourist locations, in addition to stimulating the expansion of clandestine activities (from animal gambling to organized crime) .

For the FecomercioSP Tourism Council, the subject, extremely controversial in society, must be analyzed with the utmost caution. See below what the Entity believes about the enormous benefits and challenges of legalization.

Points that need further discussion, both in society and in Congress

One thing to keep in mind is that with the legalization and liberalization of gambling in different regions of a continental country, this may mean diluting the potential for tourism and local social and economic developments, which are relevant objectives of the proposal. – for example, what happened with the government’s decision at the 2014 World Cup to encourage the construction of stadiums in 12 host cities, when not all of them had the potential or capacity to become a major tourist attraction.

This indicates the need for structural capacity – fundamental to the development of tourism in a region – for example, the available air network.

In addition, executive inspection bodies need to be sufficiently and adequately structured to control gambling, to prevent (and not allow) criminal and mafia actions, and to prevent the use of gambling as a possible money laundering channel. .cash.

It is also necessary for public safety and health structures to be able to withstand the possible consequences of gambling-related pathologies, such as increased addiction and alcohol and drug addiction.

Companies with know-how in operating casinos are largely international. We need to know how they will be able to act in Brazil, in the midst of legislation providing for a market reserve for domestic companies.

Positive points to consider for legalization

– Increasing income without raising taxes.

– Expanding and diversifying the entertainment offer, as the structures proposed for the installation of casinos, as in international destinations, are composed of a whole entertainment complex, such as theaters, shows, gastronomy and nightlife.

– Tourism development and job creation.

– The possibility of training the workforce in the locations where the casinos were implemented.

– Products with a high capacity to attract international investments.

Gambling is legal and regulated:

– 75.52% in the member countries of the United Nations (UN);

– in 71.16% of the countries that make up the World Tourism Organization (WTO);

– in 97% of the countries forming the Organization for Economic Co-operation and Development (OECD);

– in 93% of the G20 nations, of which only three do not allow it: Brazil, Saudi Arabia and Indonesia. It is worth remembering that the last two are Islamic;

– Despite the Islamic majority, countries such as Lebanon, Morocco, Tunisia, Indonesia and Egypt allow gambling. The United Arab Emirates, also Islamic, announced the implementation of the first casino in January.

Even after an 80-year ban in Brazil:

– illegal gambling generates over R $ 18.9 billion annually in clandestine betting;

– 20 million Brazilians bet daily on the game of animals;

– more than 10 million Brazilians bet every day on sports games and sports betting on the Internet;

– The Brazilian is not prevented from playing, Brazil is prevented from collecting game fees.

Legalization of gambling in Brazil:

– would generate 658 thousand direct jobs and 619 thousand indirect jobs, with the production chain of the game (0.94% BNDES / Trade index);

– thousands of jobs would be allocated to people with disabilities to comply with the Quota Law.

– legalized gambling would raise BRL 74 billion a year;

– the game would pay R $ 22.2 billion in fees;

– The game would raise R $ 6.7 billion in grants.

Historic

FecomercioSP highlights the vast history of inputs and outputs involving games in Brazilian society. In 1941, the government of Getúlio Vargas made roulette gambling illegal in Brazil, the same year that gambling was classified as a criminal offense in the Penal Code. In 1960, gambling was nationalized in Brazil, based on the federal lotteries launched at the time, as a way to end the game of animals. In 1992, the World Health Organization (WHO) International Code of Diseases included the game in its list.

According to information from the Instituto Jogo Legal, the lottery service was recognized as public in 1932. The qualification maintained by decrees of 1943, 1944 and 1967. A 1941 decree dealing with the “Contravention Law” banned the play of animals, while another since 1946 it has banned casinos and gambling. In other words, 70 years after the last law, the regulatory framework for the activity has not yet been updated.

According to the Institute, the prohibitive legislation has not changed the scenario of illegal gambling in the country, which annually turns over $ 18.9 billion into illegal gambling ($ 12 billion), bingo ($ 1.3 billion), slot machines (R $ 3.6 billion) and sports betting, iGaming and internet poker (R $ 2 billion). Illegal gambling in Brazil moves much faster than official gambling (R $ 14.5 billion annually), without any counterpart of these resources for the state and society.

Source: FecomercioSP

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