Gambling In Brazil
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- Gambling History in Brazil. Many forms of gambling in Brazil used to be legal. That was until 1941 when the government introduced the Criminal Contravention Act. Then in 1946, even more, new legislation was passed, and this prohibited even more forms of gambling, including land-based casinos. However, this didn't stop venues from operating.
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There have been numerous changes regarding the gambling laws in Brazil throughout the country’s history. At one point, Brazil supported land-based gambling and even sported one of the biggest casinos in the entire South and Central America.
In addition, they passed the Zico Law in 1993, which allowed establishments to install electronic gaming machines. Unfortunately, neither of these forms of gambling managed to survive for a long time as new bills and laws quickly made all forms of gambling in Brazil illegal again.
Currently, Brazilians can enjoy betting on horse races and playing the lottery while betting on games of chance is illegal in Brazil. Interestingly, since poker is classified as a game of skill, this interpretation of the law allowed it to pass through the cracks, meaning that players can play it legally.
Perhaps it is precisely the interpretation of the law that hides the key to the future of gambling in Brazil. Namely, the current federal gambling law dates back to 1941 and is set for an update.
Cheapest Gambling On The Strip
At the same time, millions of Brazilians continuously gamble in unregulated markets, which is costing the country millions of dollars every year. Also, that is one of the main reasons why casino operators and members of the Central block of the federal Chamber of Deputies are pressing the issue and hoping for gambling to become legal in Brazil.
Unfortunately for them, the future of gambling in Brazil rests in the hands of evangelical Christian legislators, and, needless to say, they aren’t keen to green-light something they consider to be a sin.
However, members of the block continue to urge Brazil’s president, Jair Bolsonaro, to authorise casino gambling. While Bolsonaro is opposed to gambling, he also thinks the decision regarding gambling in his country should be left to Brazilian states. In his opinion, they should be the ones to decide whether brick-and-mortar casinos should be accepted or not.
Some of the most popular tourist destinations in Brazil are Rio de Janeiro and São Paulo. Even though the mayor of Rio de Janeiro, Marcelo Crivella, is an evangelical bishop, he isn’t opposed to the idea of allowing a casino to be built within the borders of his city.
However, there’s a catch — the gambling area would only be available to international tourists. When it comes to São Paulo, the Secretary of Tourism said that he is looking forward to seeing the economic possibilities and development casinos could bring.
Government officials aren’t the only ones looking forward to the opportunities the legalisation of casino gambling could bring to the table. Boss of Las Vegas Sands, Sheldon Adelson, made his intentions clear and met with Brazilian officials in Nevada, as well as Brazil, to talk about new business opportunities. Adelson had initially planned to invest around $8 billion in a casino resort in Rio, but he could easily end up spending around $15 billion on resorts in Rio and São Paulo
Illegal Gambling In Brazil
Furthermore, Brazil is not losing tax revenue income from land-based casinos only, but online ones too. Since the current gambling law comes from 1941, it only covers land-based gambling and doesn’t have even the slightest mention of online gambling. In other words, operators aren’t allowed to run online casinos from within the borders of Brazil, but the players from Brazil are able to join online casinos anywhere across the world.
Namely, online gambling in Brazil isn’t legal but it isn’t illegal either since there are no laws that regulate the market. Instead of restricting Brazilian casino players’ access, as they do with American players, numerous online casinos outside of Brazil have seized the opportunity and now accept players from Brazil.
While we are positive that the evangelical wing has only the best intentions in their hearts, their decision has numerous adverse effects on the country. In addition to losing money by not taxing the players, the country is missing out on an opportunity to create a lot more job openings for the residents of this South American country by legalising online and land-based casinos.
Moreover, Brazil already has millions of casino enthusiasts who often play in unregulated markets despite the current laws or religion, which is why we have to wonder if it is better for the country to tax the players instead of restricting their access to casinos and have someone else profit from it.
After all is said and done, legalizing gambling could be a big step forward for Brazil’s economy and the gambling industry. The decision to regulate the market would be a win-win situation for both the country and casino operators who eagerly await the day when casino gambling is going to become legal in Brazil.
Deputy Alencar da Silveira Jr. (PDT-MG) is a journalist and broadcaster. He began his political career in 1988, being elected the youngest councilor in the Belo Horizonte Chamber in that legislature. In 2015, he was elected to receive the Guará Trophy in Minas Gerais, as Sports Director of the Year, having received several awards.
Luiz Carlos Prestes Filho: What are the economic activities that contribute to the social and economic development of Minas Gerais? What actions has ALMG (Legislative Assembly of Minas Gerais) developed to give greater dynamism to these structuring activities?
Alencar da Silveira Jr: Minas Gerais has very diverse economic activities that vary from region to region. The service sector is the biggest contributor to the economy. Mining and other industrial activities are also very important for the state's economy, as well as agriculture and livestock. To help with the economic recovery, we launched the ‘Recomeça Minas’ plan in the state’s Assembly. The proposal will help sectors of the economy that were affected by the Coronavirus pandemic with the settlement of tax debts and tax incentives. In this first semester, we will study and promote debates with businessmen, workers' representatives, and the Government. Based on that, we will draft a bill to help the economy resume. We expect to regularize approximately R$ 14 billion in tax debts and reduce taxes in various sectors as a form of incentive.
What are ALMG's programs and projects aimed at Tourism, Leisure and Culture activities?
At the end of last year, ALMG approved the final report of the Extraordinary Tourism and Gastronomy Commission, which highlighted the impacts of the pandemic on the sector and presented data that show the growth potential of tourism in the State. The commission started this work in March 2019 and ended with the approval of the report, which is available on the Assembly website. Last year the Assembly created Minas Arte em Casa, to move the cultural sector during the pandemic. The project broadcast several online presentations on ALMG's social networks. Now, we need to work to create exemptions and allow the renegotiation of tax debts to help the recovery of the sector, which was greatly affected by the pandemic.
Could the reopening of casinos and bingos help to strengthen state tourism? How many new jobs would be generated? Would the tax collection increase by 5% or 10%?
Several state’s towns became famous because of the casinos, especially in the South of Minas, the “Brazilian Las Vegas”. With the reopening, tourism in these municipalities would again have a large growth with generation of jobs and income. And today, with the ease of locomotion, other regions of the state could be benefited as well. In Minas there are several municipalities with truly relevant natural and cultural attractions. This is essential to attract tourists to the casinos. The time that casinos brought people just to gamble is over. Now, the person travels and takes the family along, there must be entertainment for the children, for the whole family. It is not possible to maintain casinos without offering these attractions together. In Brazil, the legalization of the gambling sector could generate around 600 thousand direct and indirect jobs and R$ 15 billion annually with taxes. It was the amount that could be collected with grants.
Would it be important to also regulate in the state the jogo do bicho? How big is this activity in Minas Gerais?
Illegal gambling benefits few people. The jogo do bicho is on every corner, with informal workers and without paying taxes. With legalization, the government could use the money for health and education. In addition, thousands of workers could move out of informality. Gambling in Brazil is a reality, but few are benefited by it.
Would it be opportune for the State Secretaries of Finance to send a document to the National Council for Farm Policy (CONFAZ) in favor of the regulation of gambling?What points could be highlighted in this document?
The Government of Minas Gerais is going through a very difficult economic moment. It is unable to pay the civil service salary on time, it has already delayed transfers of ICMS to the municipalities. The legalization of gambling is one of the ways to help in such a delicate moment, which was aggravated by the coronavirus pandemic. Given this scenario, it would be very valid for the Secretary of State for Finance to point out the benefits of legalizing the activity for the collection of the State and the generation of employment and income for several regions. It can point out the tourist potential of the municipalities that have housed casinos in the past and others that also have attractions to receive the casinos. In addition to showing that illegal gambling already exists but does not pay tax and has no rules. Another thing that the Government needs to do is to let several companies explore gambling in the State, through the Loteria Mineira. It will carry out the concession again in 2021. At the moment, only one company can explore the activity here, we need to allow other firms to explore as well.
Would the resumption of the activity of casinos give a greater appreciation to the historical identity of the Mina Gerais towns that lived through the Golden Age of the Casinos?
Casinos will attract more tourists and reinforce the identity that these cities have created with gambling in the past. Older residents certainly remember that time, as casinos move these cities a lot.
In your opinion, what should be the destination of the tax collection of regulated gambling?
Part of the collection must be reserved for the treatment of compulsive gamblers. Most of them, on the other hand, should be used for health, education, and security. The activity needs to contribute to the social and help the population. In relation to the carnival, today it earns much more than any jogo do bicho bank in Rio. The time that gambling helped has passed. Today, carnival is an industry. How much does it cost for you to parade on the avenue? How much does carnival make today? It is an industry that has evolved and that currently earns a lot.
Does the Minas Gerais legislature follow the debates on gambling regulation in the National Congress?
I have advocated the legalization of gamblings since I entered public life. I always follow the debates and proposals presented at the National Congress. On several occasions, the Minas Assembly has already held debates and brought deputies from other assemblies and also parliamentarians from the National Congress. We are attentive and prepared if the legalization is approved. I think that the deputies and senators should use this difficult economic moment, with high unemployment, to approve the return of the gambling sector. Of course, with proper regulation and inspection.
Democracy is a universal political system; it is above ideologies and religions. Do you believe that regulated gambling strengthens democracy?
It strengthens, because you stop restricting an activity due to religious interference, as it happened in Brazil when gambling was banned. In addition, you regulate and define rules for an activity that already happens illegally, without paying taxes or bringing any type of benefit to the population.
Source: Luiz Carlos Prestes Filho – Executive Director of Tribuna da Imprensa Livre newspaper