Repercussions of the legalization of gambling in Brazil
Folha de São Paulo – Trends/Debates
Should gambling be legalized in Brazil?
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Yes – Saving a Negative Budget
Regis de Oliveira*
I've had the opportunity to visit many countries. Gambling exists in all of them. In some, there's complete freedom. In others, citizens can't enter gambling establishments – Morocco, for example. But, in any case, one of the dimensions of humanity is enjoyment.
As long as gambling is considered an illegal activity – unless funded by the government – it goes hand in hand with corruption. This corruption can be police corruption, as people seek to avoid the embarrassment of arrest or prosecution, or it can be driven by tax evasion and investment in activities that allow for tax avoidance.
Gambling has been prohibited here, incomprehensibly, since the government of President Eurico Gaspar Dutra (1946-1951). Brazil is a country with great tourism potential, wonderful beaches, paradisiacal places, and a good hotel network, but it stubbornly refuses to allow gambling on its territory.
Tax revenue from gambling could become one of the largest sources of income for the country – especially at this time when the country is going through a very serious economic and fiscal crisis.
This situation of severe restrictions on investment, coupled with a huge crisis in the industrial sector, is reflected in declining trade and tax revenue.
The result of mismanagement and the lack of serious policy in various sectors has led the country to economic paralysis. There is a situation of recession, high unemployment, and poor provision of all public services.
One of the alternatives to inject a strong amount of resources into the country, which will force the inflow of large capital, is the opening of casino games and the legalization of bingo halls and the jogo do bicho (a type of lottery).
The economic impact of legal gambling is around R$12 billion. Illegal gambling generates close to R$20 billion annually. With legalization, many billions would be declared and taxed by the Federal Revenue Service. One can imagine how much revenue would be collected. The money would be channeled to essential state services.
Today's investors would turn to the law, potentially becoming entrepreneurs instead of being considered criminals. The possibility of abolishing the Law of Minor Offenses and incorporating it into the Penal Code, with harsher penalties, looms over the game. This circumstance will worsen the situation for those who continue to operate illegally.
Wouldn't it be easier to legalize everything and have this industry generate revenue for Brazil? Why treat as a crime what isn't a crime?
I have always understood that pleasure, which is playful, is one of the dimensions of man, just like religion. There is a space that the public does not enter. It is strictly a matter of opportunity and convenience for human beings.
Your emotional and romantic life, your relationship with your relatives, your pleasures, your sexual activity, your entertainment, your contracts, etc., all belong to a realm in which the State cannot and should not interfere. The public sphere is intended to prevent confrontations, violence, and death. They are, therefore, entirely different realms.
Opening up all gambling has a number of advantages: it would reduce corruption, bring current lawbreakers into compliance, generate significant revenue for the government, create numerous jobs, and attract massive investments boosting sectors such as construction, hospitality, music, laundry, etc.
No serious arguments to the contrary are apparent, except those of a religious nature. Even these lack foundation. The prohibition that exists today has never been found in any sacred text.
In short, we see only advantages in legalizing gambling in Brazil. It is urgent that we discuss this seriously, without prejudice.
(*) REGIS FERNANDES DE OLIVEIRA , 70, lawyer, is a retired full professor at USP and a retired judge. He was a federal deputy for São Paulo (1995-1996 and 2007-2010) and interim mayor of São Paulo (2000).
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No – Home wrecker
Mendes Thame*
The practice and exploitation of gambling in our country has caused serious harm to society and covered up criminal activities, providing enormous profits to suspicious organizations.
Gambling facilitates money laundering, prostitution, the corruption of minors—in short, social problems that we seek to combat. Legalizing bingo is an attack against the family structure; it's a brutal step backward that will have a major impact on society as a whole.
Gambling in Brazil had been prohibited since 1946, by decree-law of President Eurico Gaspar Dutra (1946-1951), and was readmitted by the Zico Law (Law No. 8.672/1993) and reaffirmed five years later by the Pelé Law (Law No. 9.615/98).
A new attempt to ban gambling came during President Lula's administration, through Provisional Measure 168 of 2004, which mandated the immediate closure of bingo halls. The measure was approved in the Chamber of Deputies, but surprisingly rejected by the Senate, leaving the country without legislation on the matter.
Today, gambling is considered a criminal offense under the jurisdiction of special courts, where penalties prioritize, whenever possible, conciliation or simple plea bargaining.
Those who advocate for the legalization of bingo in Brazil justify their position by saying that this market creates numerous jobs and boosts the tourism sector.
In reality, gambling does not create wealth. Therefore, there is no increase in GDP (Gross Domestic Product). Gambling establishments may provide a service, but they absorb money that already exists and is within the household economy.
The WHO (World Health Organization) considers gambling an addiction, a public health issue. Studies from USP (University of São Paulo) show the severity of ludopathy – a compulsive or pathological addiction to gambling – which leads a person to be unable to resist the impulse to gamble more and more, consequently causing serious economic, psychological, and family problems.
Some advocate for the creation of a national registry of gambling addicts. Is it possible that anyone thinks this absurd measure would solve the problem? It's far more serious than a list from a credit bureau or anything else. This issue is extremely worrying and we must give it all the attention it deserves.
Studies conducted at USP (University of São Paulo) reveal that some players describe sensations somewhat similar to those experienced by drug users and addicts, such as calming or stimulating sensations, with both potentially occurring in a short period of time.
Research also highlights that, just as drug addicts overuse psychotropic substances, the size of bets placed by a pathological gambler is approximately ten times greater than that of others.
They frequently present with depressive mood, irritability, motor agitation, tremors, lack of concentration, and a variety of physical symptoms, the most common being nausea and headaches.
Given the many problems presented so far, the following questions need to be answered: who benefits from the legalization of gambling in Brazil? Who will benefit from this: Brazilian families or just a group of offenders?
Legalizing bingo in Brazil is to ignore all the progress achieved so far. That is why we must say no to any activity that jeopardizes the well-being of the community.
(*) ANTONIO CARLOS MENDES THAME , 69, professor at the Luiz de Queiroz Higher School of Agriculture at USP, is a federal deputy for PSDB-SP and president of the Brazilian chapter of the Global Organization of Parliamentarians against Corruption – Gopac.
Zero Hour – Editorial: Risky Game
There is an element of absurdity in the idea launched by the government, to test reactions, regarding the possible legalization of so-called gambling in the country. This is a subject that is always present, but its return to the agenda is under the strange pretext that this could alleviate the government's financial difficulties. It is an attempt following the failure of the proposal to reinstate the CPMF (a tax on financial transactions). Since Congress and the productive sector reacted against the Executive's arguments that the temporary tax is a necessity, someone in the government decided to suggest that if the population gambled more than they currently do, they could help, through taxes, to save the public sector.
This is yet another outlandish thesis amidst efforts to resolve the budget deficit. As is well known, casinos and bingo halls are prohibited in the country, the latter by initiative of former President Lula during his first term and the former since the Dutra government in the 1940s. Although the proposal deserves to be examined under other circumstances, also taking into account its social consequences, it cannot be seen as a magic solution. The question of whether or not to legalize so-called casino games—roulette, cards, bingo, and others—should not be viewed from a supposedly moral standpoint, especially since other types of gambling are widely practiced in the country.
What is unacceptable is the reactivation of the debate on this issue in the context of a crisis, as if this were one of the magic solutions available to the government. The path to solutions for the federal government's cash flow difficulties lies in rationalizing the management of revenues and expenditures. The country will only overcome the crisis when it controls spending, reduces the size of the administrative apparatus, and invests in resuming growth.
The State of São Paulo – Editorial: The Lure of the Abyss
Desperation – and recklessness – seems to have completely taken hold of Dilma Rousseff's government. After acknowledging that it has no "plan B" in case its measures dubbed "fiscal adjustment" are rejected in Congress, and after warning that the country cannot withstand the consequences of new spending, the government now announces that it intends to even resort to legalizing gambling to raise money and thus try to balance its accounts.
This demonstrates that President Dilma Rousseff has lost all shame in considering irresponsible solutions to the violent crisis she herself created – and the legalization of gambling, seen not long ago by the Workers' Party government itself as reckless, would certainly be one of them.
The last time Congress debated the legalization of gambling, in 2010, there was no shortage of warnings that it is an activity that facilitates organized crime, as it serves for money laundering. Furthermore, gambling operators would have considerable power to corrupt public officials and members of the judiciary.
It is worth remembering, in this regard, that the first scandal of the PT governments, which occurred in February 2004, broke when it became known that Waldomiro Diniz – then deputy chief of parliamentary affairs of the Presidency of the Republic, subordinate to José Dirceu, Minister of the Civil House at the time – had been caught on video, recorded in 2002, asking for bribes from Carlinhos Cachoeira, a notorious illegal gambling operator from Goiás. Diniz wanted the money for himself and to finance the PT's electoral campaign.
It was only the first year of Luiz Inácio Lula da Silva's presidency, but it was already clear then that the plans for expanding the Workers' Party's power would not respect moral limits – compared to the Petrobras and Mensalão scandals, the Waldomiro Diniz case is amateurish.
In a damage control strategy, which included calming down the dust from a parliamentary commission of inquiry established to investigate the scandal, Lula issued a provisional measure to prohibit bingo and slot machines. But the idea of legalizing gambling was not abandoned – the lobby of gambling entrepreneurs managed to bring a specific bill on bingo to a vote in the Chamber of Deputies in 2010.
At the time, government parliamentarians, with the support of Christian groups and the Public Prosecutor's Office, managed to prevent its approval. The Lula government, initially ambiguous on the matter, worked hard in the final stretch to block the project because it feared that new cases like that of Waldomiro Diniz could further complicate an administration that was already facing major scandals.
On the eve of the vote, the legal advisory team of the Civil House issued an opinion stating that the project could strengthen organized crime in the country. At the same time, the economic team considered that bingo halls could be used for crimes such as tax evasion and money laundering from smuggling and drug trafficking, as well as for undeclared funds.
At the time, then-congressman and future Minister of Justice under Dilma Rousseff, José Eduardo Cardozo, argued that legalizing gambling "would bring more harm than good to the country." But the world turns, and now, five years later, the gambling lobby has gained an unexpected supporter – the President of the Republic herself.
Seduced by arguments that gambling could boost government coffers through tax collection as early as next year, Dilma authorized government supporters to sound out Congress about legalizing bingo, casinos, and even the jogo do bicho (an illegal lottery game). As a result of this maneuvering, a proposal by Senator Ciro Nogueira (PP-PI) on the subject has already been attached to the so-called "Agenda Brasil," a set of measures to revive the economy. In his justification, Nogueira, who is under investigation in Operation Lava Jato, calls the opposition to gambling "demagogic discourse."
Thus, unable to overcome the crisis through clear and direct means, Dilma begins to wade on shaky ground, succumbing to the temptation of magical – and harmful – solutions for the country. It's tempting fate. ( O Estado de São Paulo )
Saturday – Legalize gambling
If the government already admits that it can raise more than R$ 20 billion through gambling, as is already happening in several countries, what is preventing Congress and the government from working together to urgently approve what should already be in place? Let's get to work. Gilson Carlos de Souza Martins – Rio.
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Brazilians are flocking to Punta to gamble. Why not legalize casinos in the following way: free entry with a foreign passport, and for Brazilians only with a card issued by the Federal Revenue Service, to prevent people without resources from committing reckless acts? Pedro Rosenblatt – Rio.
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Instead of proposing cuts to superfluous government spending, President Dilma, weakened and disoriented, listens to the sweet and deceptive siren song and proposes as a saving solution the return of gambling, the laundering of money from corruption and drug trafficking. Someone needs to tell the president that this money is not included in the GDP calculation. Anderson A. Zelbe – Niterói, RJ.
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Sunday – Legalize gambling
Dear government officials and congressmen, what is preventing the legalization of gambling in Brazil? While the debate continues about where to raise funds, whether through taxes, including the reintroduction of the CPMF (a tax on financial transactions), the taxes that could come from gambling are going to corruption. Wake up, Brazil! Arlete Soares Felix, Rio.
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Monday – Games
This page featured, in the first days of September, reader comments suggesting the legalization of gambling as an alternative source of revenue instead of taxes, such as the CPMF (a tax on financial transactions) proposed by the Presidential Palace. They are correct. A study by the Brazilian Legal Gambling Institute shows that illegal gambling generates around R$ 19 billion. If only this amount were taxed, the government would collect R$ 5,7 billion annually. However, if all forms of gambling were legalized, as foreseen in bills currently being debated in Congress, Brazil could collect approximately R$ 24 billion per year in taxes from this sector. Magno José Sousa, Niterói, RJ.
Folha de São Paulo – Reader's Panel
Saturday – Brazil in crisis
If the Dilma government had solutions like pulling rabbits out of hats, we would be an exemplary country. The current strategy is to legalize gambling to increase tax revenue ("Government talks about legalizing gambling," "Poder," 9/18). Legalizing means imposing rules on illegal activity. The consequences of the side effects are not yet known. It will not be surprising if tomorrow someone suggests legalizing the sale of drugs currently considered illegal. The revenue potential would be infinitely greater than that of gambling. SERGIO HOLL LARA (Indaiatuba, SP) – ( Reader's Panel – Folha de São Paulo)
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Sunday – Gambling
I fondly remember the bingo halls I used to frequent. Many ladies would arrive early for afternoon tea with their friends, who had a lot of fun. Especially for retirees, it was a very healthy way to socialize. I even saw romances forming and marriages not only among senior citizens, but also with younger people. Everyone should do what they want with their money, without the State interfering in where and how we spend it. I am totally in favor of reopening gambling establishments. ANA ELIZABETH NOLL PRUDENTE (São Paulo, SP)
Jogos of chance
I fondly remember the bingo halls I used to frequent. Many ladies would arrive early for afternoon tea with their friends, who had a lot of fun. Especially for retirees, it was a very healthy way to socialize. I even saw romances forming and marriages not only among senior citizens but also with younger people. Everyone should do what they want with their money, without the State interfering in where and how we spend it. I am totally in favor of reopening gambling establishments. ANA ELIZABETH NOLL PRUDENTE (São Paulo, SP)
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The Dilma government's proposal to regulate gambling will likely bring in some paltry sums for the government coffers, which certainly won't make a difference to this billion-dollar deficit that's difficult to recover. Now it's the legalization of gambling. They're already considering the decriminalization of drugs. Next, they'll propose legalizing prostitution with corporate exploitation. The PT will end up turning Brazil into a tropical Sodom. JAIR GOMES COELHO (Vassouras, RJ) (Reader Panel – Folha de São Paulo)
Little Saint Lady
More lost than a blind man in a shootout, excuse me to the visually impaired, Ms. Dilma decided to take a shot in the dark. She floated the hypothesis, already reported by the media on different occasions, of legalizing gambling in Brazil, bingo and casinos, since the governments themselves already exploit different types of lotteries. With an eye on the hefty tax revenue that could come from this legalized gambling, Dilma risks sleeping badly from today onwards. The reason is that, according to gossip, gambling in Brazil in the late 40s was prohibited by order of President Dutra, after he received orders from his wife, Dona Santinha, an extremely religious lady who saw casinos as dens of iniquity. Careful, Dilma, Dona Santinha is coming to pull your leg. Marco Antonio Esteves Balbi [email protected] – Rio de Janeiro
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Legalization of gambling
The federal government is now studying the possibility of legalizing gambling, such as the jogo do bicho (animal lottery), casinos, and bingo, to increase revenue and reduce the budget deficit. This alternative should have been studied and its revenue estimated much earlier, as it is a much fairer way to increase revenue than the Provisional Contribution on Financial Transactions (CPMF), since everyone gambles if they want to. Moreover, the prohibition of bingo, casinos, and especially jogo do bicho, the most popular game in the country, is utterly stupid. The Caixa Econômica Federal (Brazilian Federal Savings Bank) holds daily draws for various types of gambling games and could have been making more money long ago if lottery outlets accepted jogo do bicho bets instead of leaving it in the hands of known and wealthy racketeers. Caixa could even be the sole banker for the illegal gambling industry. The congressman is right to point out that, while casinos and bingo halls are prohibited here, those who want to gamble can do so online or in other countries. I have never been to a bingo hall, much less a casino, and the only time I played the lottery was through a colleague at work, as I didn't know, and still don't know, where the betting collection points are located. But I have thought for many years that this game could indeed be "nationalized," like the others, or left to free enterprise, provided the government could properly oversee them, which, as we all know, is very risky. If numerous countries profit greatly from gambling, it makes no sense for Brazil to prohibit it, especially when casinos are associated with the beautiful beaches and landscapes that nature has given us. Certainly, those who currently make millions daily from illegal gambling will be the only ones harmed if gambling is legalized, because addicts never stop gambling. Gilberto Pacini [email protected] . São Paulo.
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Opportunism
Lincoln taught the world that a politician becomes a statesman when he acknowledges his own mistakes and is guided by values, not opportunism. Legalizing gambling to increase revenue is a prime example of desperation and lack of direction. For a government adrift, it could suggest taxing "adult male entertainment services" (prostitution), drug trafficking, arms trafficking, marijuana cultivation, and abortion clinics, which would bring them out of the shadows and generate revenue to cover the hole this administration has created in Brazil's coffers, morality, and hope. What mediocrity! What baseness! What a shame! Luiz Eduardo Pesce de Arruda [email protected] São Paulo.
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Whatever God wills!
By suddenly wanting to legalize gambling such as bingo, casinos, and the jogo do bicho (a type of illegal lottery), the government is giving us the clearest proof that it is abandoning the economy to its own fate. And may God's will be done! Eduardo Augusto Delgado Filho [email protected] – Campinas
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Jogos of chance
Bingo! Great idea to profit from the bad luck of many and the good luck of a few winners. It's typical of the government and its election campaign. Haroldo Nader [email protected] – Valinhos
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Legalize gambling
The only good suggestion so far to emerge in this "zone" where the government has gotten itself into more money for the public treasury is to tax gambling. Many are against it, but it's pure hypocrisy. Since it's prohibited here, those who like to gamble go to clandestine locations and, if they have money, to Uruguay, Argentina, and other Latin American countries where gambling is legal. Those with even more money go to Las Vegas. Since the world began and man learned to walk upright, over time, he learned to entertain himself through games in various forms, until we arrived at the luxurious American casinos that, through taxes, bring billions of dollars to the US government. Laércio Zannini [email protected] – São Paulo
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Bingo!
After almost five years, we see a glimmer of intelligence from this government: in 80% of the world's countries, gambling is legal, but not in this Bolivarian country (Brazil). I view this attitude of analyzing the legalization of gambling very favorably, as the police would have more time to catch real criminals, instead of arresting old ladies playing bingo. Ivan Bertazzo [email protected] – São Paulo
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Place your bets
Who said the government doesn't have a plan B? Let's turn the country into a real casino. Moises Goldstein [email protected] – São Paulo . ( Readers' Forum – O Estado de São Paulo )
