The debate responded to requests from senators Carlos Viana (Podemos-MG) and Eduardo Girão (Novo-CE) to discuss a bill that authorises the operation of casinos and bingos, legalises gambling and betting on horse races. 

According to the National Secretary for Infrastructure, Credit and Investment at the Ministry of Tourism, Carlos Henrique Sobral, Brazil is stagnating at the same annual figure of 6 million international visitors. For him, casinos could boost the sector.

"We haven't passed that figure in years. It's a challenge for the Ministry of Tourism," said Sobral.

The federal government estimates a 20% increase in the current 214,000 tourism-related jobs if gaming is legalised, as well as a 1.2% increase in tourism's share of the gross domestic product (GDP). Currently, according to Sobral, the tourism sector accounts for 8 per cent of GDP.

The vice-president of Hard Rock International's Casino Operation, Alex Pariente, said that the number of Brazilians travelling to Las Vegas in the United States to gamble is significant. In his opinion, these people could be having an impact on Brazil's economy.

“If we can use all kinds of resources, in a very controlled way, to be able to strengthen tourist inflows, rather than exports as they are today, I think that's a very important benefit. In Las Vegas, the Brazilian international market was the third largest. This export of tourists is not insignificant. [...] The US has 1,011 commercial casinos, with an economic impact of 328 billion dollars”, said Pariente.

Impact questioned

The relevance of Brazilians seeking out casinos in Las Vegas was contested by Senators Jorge Seif (PL-SC) and Girão. For Girão, freeing casinos won't increase the interest of foreigners because the segment is already free in many countries.

"Gambling won't help attract foreign tourists. The guy is going to wake up in France, which has [legalised] gambling, a neighbouring country [with legalised gambling] everywhere in Europe, and he's going to [think] "I feel like gambling, I want to gamble in Brazil"?,  asked the senator.

For André Estevão Ubaldino Pereira, a prosecutor with the Minas Gerais Public Prosecutor's Office (MPMG), tourism development in Brazil is not growing because of public security problems, such as homicides and their link to drug trafficking. In his opinion, the approval of the bill will strengthen criminal organisations and worsen tourism.

"We have approximately 40,000 homicides a year. That's why foreign tourists don't come here, precisely because we live in a country of serious risk. Drug trafficking only survives because we haven't created mechanisms to inhibit money laundering. The atrocious violence we are experiencing is the consequence of a criminal activity that will be exponentially stimulated if gambling is legalised.

Revenue

Gilberto Pereira, executive vice-president of the National Association of Brazilian Federal Revenue Auditors (Anfip), said that Anfip is against the bill. He said that countries like the United States and England, which allow gambling activities, are unable to prevent tax evasion and the association of casinos with mafias. The increase in government tax revenue from the sector is an argument often used by parliamentarians in favour.

"It is estimated that billions of dollars are evaded in this sector. The idea of increasing revenue is illusory, just a mask to say that the idea is good... If [Brazil] wants to increase revenue, it has to invest in tax administration. What will increase is crime," said Pereira.

However, for inspection and regulation specialist Guilherme Luís Dias, Brazilian companies already have national technology that allows for adequate inspection. He said that he represents companies interested in selling gaming machines.

"The obstacle of control and supervision doesn't exist. There is Brazilian technology capable of controlling the cash in these machines. It's perfectly possible for the Brazilian government to authorise any number of machines it wants. And these machines will be available online at the Receita Federal to see the turnover of all of them, can check if there is money laundering or any irregularities. The activity is important in every civilised country in the world: in England, France, Spain. And it's duly regulated. I agree that there are always leaks, that's human nature.

Gambling and horse racing

Bill 2.234/2022 authorises the installation of casinos in tourist centres or integrated leisure complexes, such as high-standard hotels with at least 100 rooms, restaurants, bars and venues for meetings and cultural events. The text provides for the installation of a casino in each state and in the Federal District. Exceptions are made only for the states of São Paulo (up to three casinos) and Minas Gerais, Rio de Janeiro, Amazonas and Pará (up to two casinos). Casinos may also be installed on maritime vessels (a limit of ten, nationwide) and on river ships with at least 50 rooms.

In addition, in each state and in the Federal District, one legal entity per 700,000 inhabitants may be accredited to operate gambling. Horse race betting, on the other hand, can be operated by tourist organisations accredited by the Ministry of Agriculture. These same organisations may also be accredited to operate bingo games at the same time, as long as they take place in the same location as the horse race.

Agência Senado