Follow the model of Vegas, Macau
The Las Vegas Sands Corp. is on the front line of gaming operators looking to break the market in Brazil. On a recent visit, Andy Abboud, the Sands’ senior vice president of government relations, told lawmakers the company wants to see “a limited and strictly regulated environment for gaming, similar to those in the jurisdictions in which we operate. Brazil should exploit and adopt the high regulatory standards of Las Vegas, Pennsylvania, Macau and Singapore.”
Abboud said all gaming options in the country, including bingo and jogo do bicho, “should be subjected to the same standards as any other integrated resort the company would require. That said, Las Vegas Sands does not believe in the dilution of the market. Brazil should move slowly, using the regulatory framework of the mentioned locations and seeing if it is appropriate to expand the market over time.”
In recent years, the cash-strapped South American nation has struggled to pass gaming legislation. For gaming operators and investors, there’s lots to like about Brazil. It’s the largest country in South America, with a population of more than 208 million. Revenue forecasts for land-based market have ranged as high as $20 billion per year, which could mean as much as $6 billion in taxes for the government.
Last May, Sheldon Adelson, chairman and CEO of the Sands Corp., met with President Michel Temer and other high-ranking Brazilian government officials in what was seen as a prelude to a business relationship around gaming; Rio De Janeiro Mayor Marcelo Crivella then told the O Globo newspaper Adelson may be prepared to invest up to $8 billion in a Brazilian integrated resort.
“If you look at comparable numbers for gaming in that region, it’s clearly a market you need to pay attention to,” said Rob Goldstein, Sands president and COO at the time. “Adelson decided to have a look for himself and he was impressed with what he saw.”
Singapore is a good example for the Sands as it promotes itself to Brazilian lawmakers. Games Magazine Brasil noted that the U.S.-based company invested $6 billion in a single venture that generates $ 1.5 billion annually in taxes to the local government and employs some 10,000 people.
If and when it enters Brazil, the Sands Corp. wants to be located in Rio de Janeiro. “A key component of this investment model is the ability to host trade shows and events, so the region where Las Vegas Sands could invest needs a sufficient population to accommodate that kind of business,” said Abboud.
Brazilian lawmakers were expected to vote on gaming legislation in mid-December, reported Casino News Daily. But the session was adjourned before they were able to consider the bill.
CND said Brazil could be “global gambling’s sleeping giant,” with an estimated market value of more than R$18 billion (US$5.4 billion).
