Legalizing gambling could generate jobs and foreign exchange.

The gaming market potential is approximately 1% of a country's GDP. In Brazil, regulating the activity could generate annual revenue of R$ 59 billion, with projected tax collection of R$ 17 billion. These figures were presented at a meeting of the Business Council for Tourism and Hospitality (Cetur) of the National Confederation of Commerce of Goods, Services and Tourism (CNC), held on June 9th in Rio de Janeiro.

Currently, the legalization of gambling is under discussion in the National Congress, with one bill in the Senate and another in the Chamber of Deputies. “It is undeniable that this type of activity exists here. It is time to understand its relevance and discuss – in light of the current economic crisis – the legalization of casinos in Brazil as a way to promote tourism, generate employment and income,” emphasizes the president of Cetur/CNC, Alexandre Sampaio.

According to federal deputy Herculano Passos (PSD-SP), president of the Chamber's Tourism Commission and the Mixed Parliamentary Front in Defense of Tourism, gambling already exists in Brazil and is exploited by the State, as is the case with Caixa's lottery, state lotteries, and the Jockey Clubs. He explains that what is being discussed is the private exploitation of the activity and the legalization of illegal games, which are: the jogo do bicho (animal game), bingo, slot machines, and internet gambling; in addition to the opening of casinos.

Games in the world

There are currently almost 7 casinos in the world, and this industry generated $488 billion last year. Among the 193 member countries of the United Nations (UN), 75,52% have legalized gambling, while Brazil is among the 24,48% that have not legalized the activity. According to the president of the Brazilian Institute of Legal Gambling (IJL), Magnho José, it is high time for Brazilian society to debate the issue, after 70 years of prohibition. "The whole world sees gambling as an industry, not something relegated to the police pages, which is how we see it in Brazil," argues Magno.

In 2015, legal betting generated R$ 14,2 billion, while illegal betting generated R$ 19,9 billion, totaling R$ 34,1 billion. This means that for every 3 reais spent on the activity, 2 go to illegal gambling, generating no taxes or any social return. "It's necessary to reflect and understand that there is no 'no gambling' option; it's either legal or illegal, but it exists," stated the president of the Brazilian Institute of Legal Gambling (IJL), Magno José de Souza.

Counter arguments

Arguments against the legalization of gambling focus on issues such as the possibility of money laundering, an increase in the number of compulsive gamblers, and moral concerns. However, experience in countries where gambling is legalized has shown that there is no increase in gambling disorders. Magno explains that casinos apply "self-exclusion orders," which prohibit compulsive gamblers from entering for two years and can be requested by families or the gambler themselves. Herculano Passos also disagrees with the assessment that legalization would increase the number of compulsive gamblers. "People with compulsions will gamble, whether the game is legal or not; in casinos, there is support to help them and their families," argues Congressman Herculano Passos.

Regarding the possibility of money laundering, the president of the Legal Gaming Institute states that 30% of casino revenue goes to taxes, which increases operating costs, in addition to the risk, since prizes of R$ 10 must be reported to the Council for the Control of Financial Activities (Coaf), which would question sequential winnings.

Job creation

According to Magnho José, Brazil is currently the world's largest exporter of gamblers, with approximately 200 Brazilians traveling annually to gamble in any country where the activity is legalized. Federal Deputy Sérgio de Oliveira (PSD-PR), a member of the Tourism Committee, highlighted the revenue loss resulting from people traveling to casinos in neighboring countries: "In Foz do Iguaçu, we have casinos in neighboring countries, Paraguay and Argentina, and it's possible to see the large number of Brazilians who go there to gamble every weekend," he stated.

The expectation is that the legalization of gambling will immediately generate 150 new direct jobs, and with the formalization of employees in the jogo do bicho (illegal lottery), which will involve approximately 350 registered individuals, the total number should reach 500 direct jobs. ( CNC Press – Photo: Christina Bocayuva)