Brazilian Federal Prosecutor's Office criticizes and calls for rejection of bill that aims to legalize gambling in Brazil.
The Brazilian Federal Public Prosecutor's Office (MPF) opposes the legalization of gambling in Brazil. This position was expressed in a technical note from the Secretariat of Institutional Relations (SRI), which reiterated its opposition to the gambling regulation bill (PLS 186/2014), currently under consideration by the Constitution and Justice Committee (CCJ) of the Federal Senate. According to the study, the proposal lacks efficient oversight mechanisms and would facilitate the use of gambling for money laundering and other crimes.
The technical note is signed by the Secretary of Institutional Relations of the Federal Public Prosecutor's Office, Deputy Attorney General of the Republic Carlos Alberto Vilhena. According to him, the bill proposed by Senator Ciro Nogueira (PP/PI) “does not create effective control mechanisms for money laundering and tax evasion. On the contrary, it creates new and powerful mechanisms for money laundering.” Because it is inextricably linked to various illicit practices, the exploitation of gambling with the approval of the Public Authorities meets the desires of criminals.
According to the Deputy Attorney General, the arguments that regulating gambling would create new jobs and generate an estimated R$15 billion in tax revenue are completely fictitious, as is comparing Brazil to Chile and Uruguay, where gambling is legalized, without considering the different realities of these countries. The Federal Public Prosecutor's Office also questions the proposed change in terminology from "games of chance" to "games of fortune" – proposed by the rapporteur of the matter in the CCJ (Committee on Constitution, Justice and Citizenship), Senator Benedito de Lira (PP/AL).
Inspection
The very bodies that would be responsible for controlling gambling have publicly stated their absolute inability to oversee these activities, as foreseen in the Senate's text. During discussions on a similar project in 2007, authorities from the Council for the Control of Financial Activities (Coaf), the Federal Revenue Service, and the Ministry of Finance concluded that Brazil is not structurally and technically prepared to reduce the risks of the activity, nor to effectively control it.
"It is evident that the enormous number of bingo halls and casinos whose opening is encouraged by PLS 186/2014 is clearly out of step with the reality of national control bodies, even if these bodies were equipped with world-class oversight structures," warns the technical note from the Secretariat of Institutional Relations.
Corruption
According to the Federal Public Prosecutor's Office (MPF), even if the activity is legalized, the power of corruption and clandestinity will not disappear. Even if formally effective control mechanisms were in place, the "parallel state," which monopolizes illegal gambling, will not submit to the commands of the law, the statement emphasizes. In this context, it doesn't matter who formally owns the establishment, because the one who will control it will be the offender who holds territorial dominance.
It is also necessary to consider the social and health harms suffered by those addicted to gambling. According to the technical note, it is not enough to simply use arguments that it would bring financial benefits, such as increased tax revenue or the promotion of tourism, but it is necessary to evaluate quantitative and social data, as well as economic and psychological harm.
Therefore, the revenue collected by the government would not compensate for the expenses of treating pathological addicts and the harmful effects on families ruined by gambling debts.
Investment
According to the Federal Public Prosecutor's Office, the proposal represents a reversal of priorities. This is because there is an ongoing concerted effort by law enforcement agencies to dismantle criminal organizations involved in illegal gambling. In this context, legalization only serves the interests of those involved in illegal gambling.
Finally, the Federal Public Prosecutor's Office (MPF) concludes that "the arguments presented by the author of the bill and the author of the substitute bill do not allow us to conclude that the legalization of gambling is the best solution for society." In the technical note, the MPF reaffirms the serious risks to society and the institution's position against the approval of the bill. ( Social Communication Secretariat of the Attorney General's Office )
