Will Adelson be first in line?
Paulo Azi, member of Brazil’s Chamber of Deputies, has submitted a bill that would introduce legal casino resorts in the country for the first time. The legislation would authorize up to 32 casino resort licenses in the country.
Once the properties were operational, the government would get 10 percent of gross gaming revenues, with its share to be applied to public safety and tourism programs, according to Games Magazine Brasil.
Those revenues would be split 50/50 between the General Fund for Tourism and the National Public Security Fund.
According to the bill, the 23 states with populations of 15 million or less would be permitted to open one casino, while states with populations between 15 million and 25 million including Rio de Janeiro could have two. Only São Paolo, which is home to 45 million people, would be permitted to open three casinos.
Licenses would be up for bid and terms would last 30 years. Casinos would be required to demonstrate that they have adequate internal measures to prevent money laundering and address problem gambling.
The casino floor would be limited to 10 percent of total resort space. The IRs would also be required to include other attractions, including “convention centers, spas, restaurants, bars, shopping malls, art galleries, museums, theatres, musicals shows, golf courses, sports plazas, theme parks and water parks,” the bill stated.
The bill needs to be approved by a majority of deputies and senators before going to the new president, Jair Bolsonaro, who apparently supports it.
One of the arguments being used by proponents is that 93 percent of 20 of the richest first-world countries legalize casinos and profit from their operation. Brazil, they say, can raise billions of dollars by permitting casinos. And with the election of a new conservative government, funds can be raised by legalizing casinos rather than raising taxes.
Las Vegas Sands CEO Sheldon Adelson has reportedly proposed two casinos in Brazil, one in Rio and another in São Paulo. He has said he would gladly invest $10 billion in a Brazilian casino.
The governor-elect of Minas Gerais, Romeo Zema, says he’s willing to host a casino as long as the location isn’t dictated by the legislation. He says gaming is simply an extension of lotteries and bingo, which are already legal in Brazil.
“The return of these types of games depends on the endorsement of Congress and the presidential sanction. Personally, I am in favor, as long as there is a choice of specific venues for setting up casinos, with strict rules to prevent criminal activities. It would be a way to increase the collection. Currently, those who like to play go outside Brazil to do it,” he said.
With a smaller population Minas Gerais is only eligible for one casino under Azi’s bill.
