An advocate for the legalization of casinos in Brazil says the market could generate US billion a year, equivalent to around 1 percent of the gross national product of South America’s largest nation.
Speaking at the recent 59th National Congress of Hotels, Herculano Passos, a lawmaker in the country’s federal parliament, tossed out the number during a wide-ranging discussion of a legal industry’s potential.
The government’s take of that would amount to around $6.4 billion, Passos estimated, and that doesn’t count grants and fees in addition to direct taxes, he said.
“The local jogo do bicho alone moves about $3.85 billion a year, while about 300 clandestine bingos, move $415 million,” he said. “Slot machines in the illegal economy generate $1.15 billion, and online gambling, which is also prohibited, raises $960 million annually.”
Sports betting, which is immensely popular though it operates in a legal gray area, generates another $1.3 billion, according to estimates.
Regulating it also would go a long way toward protecting the integrity of the competitions, according to Professor Pedro Trengrous of the Getúlio Vargas Foundation
It “would already be reason enough to regulate and monitor sports betting, and protecting the people’s economy by ensuring that bettors receive their winnings, and the significant potential of tax collection complete a consistent tripod of reasons,” he said.
Advocates also point to the potential for a massive boost in foreign tourism and other economic spinoffs.
While momentum appears to be gathering behind regulation, it’s not the first time pro-casino lawmakers have tried to get a bill through the legislature only to see it go nowhere amid concerns about the social and political fallout in a country notorious for its official corruption.
