The 23rd Araxá Hotel Industry Meeting addressed the legalization of gambling and the impact of casinos in Minas Gerais.

After the opening ceremony of the 23rd Hotel Industry Meeting, which began on Friday (November 1st) at the Grande Hotel e Termas de Araxá and continues until tomorrow (November 2nd), the program schedule began. The opening address was given by Magnho José, a journalist and professor specializing in lotteries, games, and betting, and President of the Brazilian Legal Gaming Institute.

He addressed the topic "The impacts of the approval of the bill legalizing casinos on tourism and the hotel industry." He began by recalling that the prohibition was determined on April 30, 1946, by a decree-law of President Eurico Gaspar Dutra. As a result, 71 casinos in Brazil abruptly closed their doors, leaving 53.200 people unemployed.

"This long period of prohibition of gambling in Brazil, about 83 years (gambling) and 79 years (casinos), ended up mistakenly labeling this activity as a moral issue, like abortion, same-sex marriage, and drugs," Magnho pointed out.

Regarding the approval of the legalization of casinos and gambling in Brazil, Magnho points out that it faces a series of issues, listing: Religious, political, and ideological questions end up contaminating the debate on the legalization of gambling. Prohibitive legislation has not altered the scenario of illegal gambling in Brazil, which annually generates billions in clandestine bets. Opposing arguments that use pathology, money laundering, and lack of control as justifications are part of the lobbying efforts of those who intend to keep gambling illegal.

According to him, the ban on gambling has changed nothing, and he cites that illegal gambling generates R$ 200 billion annually, with R$ 150 billion coming from sports betting. Legal gambling generates R$ 25 billion annually, with R$ 23,4 billion from Caixa lotteries. And once gambling is legalized, it would pay R$ 30 billion in taxes and collect R$ 6,7 billion in concession fees alone.

In addition, Magnho reveals that the legalization of gambling in Brazil could generate 658 direct jobs and 619 indirect jobs within the gambling production chain, according to a BNDES/Commerce index of 0,94%. This would create 208 new jobs across all modalities, and of these, 20 would be reserved for people with disabilities to comply with the Quota Law.

Showing those present the impact of the gaming industry in other countries, he said that in the United States it generates 1,7 million jobs in more than 200 types of professions, which receive US$74 billion annually in compensation.

“And when the United States, which has a strong evangelical (48.5%) and Catholic (22.7%) tradition, legalized and embraced gambling in its legal system, it was because it realized that if there is demand, 'someone' will provide the service. In 93% of the nations that make up the G20, only three countries do not allow gambling: Brazil, Saudi Arabia (which legalized it and is building – Wynn), and Indonesia, and it's worth remembering that the latter two are Islamic. Despite having an Islamic majority, countries like Lebanon, Morocco, Tunisia, Indonesia, and Egypt allow gambling operations. The United Arab Emirates, also Islamic, announced in January the implementation of its first casino,” revealed Magnho.

But he has high expectations that casinos and gambling will soon be legalized, citing Bills 2234/22 and 442/91, which are nearing completion in the National Congress. President Lula has expressed his support and stated he will sign the laws. These bills stipulate that there could be three casinos in resorts in the state of São Paulo, two in the states of Rio de Janeiro, Bahia, Minas Gerais, Pará, and Amazonas, and one casino in each of the other states and the Federal District. Regarding tourist casinos, there will be one per state in tourist destinations within 100 km of the casino resort.

In the case of river casinos, there will be one per river with a length between 1500km and 2500km; two per river with a length between 2500km and 3500km; and a maximum of three when the river extends for more than 3500km, and the river casinos cannot remain inactive for more than 30 days.

“Casinos must operate within integrated leisure complexes or on vessels specifically built for that purpose. They must be located within high-standard hotel accommodations, with hotels of at least 100 rooms. There will be spaces for meetings and large-scale social, cultural, or artistic events, restaurants and bars, and shopping centers. The physical space occupied by the casino must correspond to a maximum of 20% of the total built area of ​​the integrated leisure complex,” explained Magnho.

He continued his explanation, saying: “Regarding locations where casinos may be opened, the Ministry of Finance must obligatorily consider the existence of tourist assets to be valued and the potential for economic and social development of the region. Locations classified as tourist hubs or destinations may have a tourist casino installed, regardless of the population density of the state in which they are located. Tourist casinos are considered to be physical spaces where gambling takes place in regions classified as tourist hubs or destinations, considered by the Ministry of Economy to have high tourist potential or vocation and qualified as a gambling and betting zone for this purpose. Accreditation for the operation of casino gambling will be granted for a period of 30 years, renewable for an equal period,” he added.

Regarding the legalization of bingo, Magnho said that for every 150 inhabitants, there could be bingo halls with 250 seats and 400 video bingo machines, bingo in stadiums with a capacity of over 15 spectators, and bingo at racetracks. Online gambling, encompassing the operation of games of chance through betting on electronic channels, will be defined by the Ministry of Finance. As for the jogo do bicho (a type of illegal lottery), one operator of games and bets in jogo do bicho will be accredited for every 700 inhabitants in each state or the Federal District.

Regarding taxation, he explained that a 17% CIDE tax will be levied on the proceeds and an inspection fee, 20% income tax on the prize, and the distribution of the CIDE-Games revenue will be as follows: 12% to EMBRATUR, 16% to the Municipal Participation Fund, and 16% to the State Participation Fund.

The minimum paid-in share capital must be R$ 100 million, and he concluded his presentation by saying that: “20 million Brazilians bet daily on the jogo do bicho (illegal lottery); more than 50 million Brazilians bet every day on games and sports betting online; around 200 Brazilians travel every year to gamble in other countries, generating income and jobs in these tourist destinations; Brazilians are not prevented from gambling, it is Brazil that is prevented from collecting taxes from gambling, and in the case of games of chance there are only two options: legal or illegal.”

“The ‘no game’ option is impossible,” Magnho concluded to loud applause after his lecture. ( Hotels Magazine )