If casinos are legalized in Brazil, the largest South American market could raise as much as $7.5 billion per year, says Senator Irajá Abreu, the rapporteur of the bill that would do that, reported Games Magazine Brazil June 12.
One of the strongest arguments for legalization, Senator Irajá told the news outlet Valor, is the revenue it will generate for business and government.
The senator said Brazil could raise R$40 billion (US$ 7.5 billion) from integrated resorts alone. He said that enthusiasm among the Ministries of Finance and Sports are high. The Minister of Finance, he said, is “one of the biggest enthusiasts.”
He added, “I see the social side of the project, and the Finance Ministry, as is its duty, looks at the economic side. The revenue will be something fabulous for the country.”
Irajá believes tourism will increase by 100 percent within eight years of legalization. He is confident the bill will pass, possibly before the parliamentary recess on July 18. After that it would require President Luiz Inácio Lula da Silva’s signature. It has already been approved by the House of Representatives.
The Finance Minister has made no public statements on the bill, but privately supports it, said Irajá, “because he understands it is good for the country.”
He added, Tourism Minister Celso Sabino, “is very excited and confident also in the approval of this matter. We are betting heavily that Brazil will have integrated resorts as a major anchor for global tourism and can double the number of tourists within five to eight years.”
Opposition to the bill comes from the evangelical caucus. Senator Carlos Viana, president of the Evangelical Parliamentary Front, told Valor: “There is no way we can support gambling. It will only serve to launder money. We understand that the money generated from this regulation does not compensate for the harm it brings to society.”
Irajá addressed that, telling Valor: “This topic of gambling is not unanimous, not by a long shot. We know this and do not expect a large margin of victory. But, in conversations with the parties and colleagues, I believe we will have a majority vote.”
He added, “I think there is a certain prejudice. Many argue about capital flight and tax evasion. Because it used to be thought that people would go to an integrated resort, to a bingo hall, take a suitcase of money and play. That doesn’t exist anymore. Today, the whole process is electronic.”
The senator pointed out that currently “anyone with a cell phone can gamble. If they do not gamble here in the country to generate tax revenue here, they will gamble elsewhere.”
Under the legislation, each state in Brazil will be entitled to a casino, except for São Paulo, which can have three, and Rio de Janeiro, Minas Gerais, Amazonas, and Pará, which could each have two. There could be one bingo hall for every 150,000 people and one jogo do bicho lottery point for every 700,000 people.
To encourage residents to play regulated jogo do bicho, the illegal version will be raised from a misdemeanor to a crime.
