Supporters and opponents of liberalizing Brazil’s laws to allow casinos, bingo halls, horse racing wagering and “jogo do bicho” debated the issue at the Senate’s Constitution and Justice Committee (CCJ) on May 9, with proponents citing the effects on tourism as one of their strongest arguments, Yogonet reported.
Senator Irajá is reviewing Bill (PL) 2,234/2022, which was forwarded from the Chamber of Deputies. Senators Carlos Viana and Eduardo Girão had asked the various sides to appear before the committee and discuss how these changes might impact tourism.
The bill allows casinos in tourist hubs or at integrated hotel resorts of more than 100 rooms, with dining and meeting spaces. One casino would be allowed per state and in the Federal District. Some larger metropolises would get more.
Each state and the Federal District would also be able to offer one “jogo do bicho” (a form of lottery) for every 700,000 residents. Horse race betting would be operated by entities licensed by the Ministry of Agriculture. The same entities could offer lottery games.
Carlos Henrique Sobral, National Secretary of Infrastructure, Credit, and Investments at the Ministry of Tourism, testified that tourism in Brazil has been flat for several years, but that the government projects a 20 percent increase in the number of jobs in the sector if gambling is legalized.
Currently averaging around 6 million tourists visit each year, Sobral said that number will definitely increase. Tourism accounts for about 8 percent of the economy in Brazil.
An executive for Hard Rock International (HRI) told the lawmakers that a significant number of Brazilian residents travel to Las Vegas each year to gamble.
Per Yogonet, Alex Pariente, HRI’s vice president of casino operations declared, “If we can use all kinds of resources in a very controlled manner to strengthen tourist arrivals, instead of exports as it is today, I think it is a very significant benefit.”
However, André Estevão Ubaldino Pereira, a public prosecutor, asserted that tourism is stagnant because of high crime issues in Brazil, such as murders and drug trafficking. The bill would only increase those problems, he declared.
Gilberto Pereira, executive vice president of the National Association of Federal Revenue Auditors of Brazil (Anfip), declared that his organization opposes the bill because of the crime element associated with casinos, and tax evasion.
However, Guilherme Luís Dias, an expert in enforcement and regulation, said Brazil has access to technology that would make proper oversight feasible.
Per Yogonet, Dias declared: “The obstacle of control and oversight does not exist. There is Brazilian technology capable of controlling the cash flow of these devices. It is perfectly possible for the Brazilian state to authorize any number of machines it wants.”
