The Problem of the Nationalization of Gambling.

Opinion I 17.03.04

By: sync

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Until the end of 2003, nobody could have imagined that gambling activity would soon be involved in the biggest government scandal to date, much less that at 23 pm on February 20th, President Lula would sign a Provisional Measure prohibiting the operation of bingo halls, forcing them to close on the first day of Carnival. The president surprisingly stated on national television that "the informal economy cannot undermine the strong economy that is intended for the country." 
However, even more disconcerting have been the speeches of the opponents of the game who participate in the government, as stated by the Minister of Justice, Márcio Thomaz Bastos, "for us there are only two alternatives: either it is prohibition or it is nationalization. There is no third alternative."
In studies on the government as a controller and operator of gambling, most experts on the subject conclude that this is not the best way to regulate the activity.
The Brazilian government should not manage bingo halls and casinos due to the following problems that commonly arise:
1 - The government has no experience in operating bingo halls and casinos;
2 – A poorly managed government bingo hall or casino can lose money from the very people involved;
3 - The government would find it difficult to recruit qualified professionals because of the salary difference between the public and private sectors;
4 – Even if recruitment happened, it would be difficult to keep them in their positions;
5 – For the construction and implementation of a bingo hall or casino, public money would be put at risk;
6 – Public trust in the government could decrease even further knowing that its interest is profit.
Even in other gambling activities, such as the lottery, government monopoly is unhealthy due to historical problems, such as what happened in 1729 with the Parisian philosopher Voltaire, one of the greatest defenders of freedom of thought of all time. At thirty-five years old, he returned to France after disagreements with the government and the church and, shrewdly taking advantage of a government error in printing the national lottery tickets, formed a syndicate that bought all the tickets. This move made him rich.
From the Brazilian government's perspective, the arguments in favor of nationalization don't seem to convince even the most fervent of Workers' Party (PT) supporters:
1 – The population might believe that the fairness of the game would be ensured and its excesses avoided;
2 – There would be a decrease in spending on law enforcement;
3 – 100% of the profits would go to the public coffers;
4 – Criminals would be excluded more easily.
Currently, it is necessary to separate the federal agency from gambling activities so that it can dedicate itself exclusively to controlling, supervising, and evaluating the activities of bingo halls and future casinos, thus reducing the potential influence of organized crime.
Therefore, it is essential to create an autonomous body within the government, and not just laws and rules, to effectively control and supervise, and audit, the centers dedicated to gambling, as well as to self-finance through taxes on the amount of bets.

The worst situation for Brazil at this moment would be for the federal government to decide to increase its own size, since this has been one of the main problems inhibiting the nation's development. Dario Paixão is a PhD candidate in Tourism and Sustainable Development, holds a Bachelor's and Master's degree in Tourism, is the Coordinator of Undergraduate and Postgraduate Tourism Courses at the Positivo University Center, and President of the Forum of Tourism and Hospitality Coordinators of Paraná.

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