Tourism and legal gambling
Focusing on tourism amidst economic adversity is nothing new in Brazil. At the beginning of the decade, Europe saw significant growth after the peak of its economic crisis; this is partly because tourism also plays a significant role in the economies of several European countries. In France, the most visited country in the world, tourism represents about 7% of GDP, according to the World Tourism Organization. This is the same percentage generated by the local automotive industry, for example. In Portugal, tourism is close to 11% of GDP, and in Greece, 16%. The government of this country even declared at the time that it was betting on tourism to try to pull the country out of recession.
But there is a significant difference between Brazil and European countries. There, gambling is legal, and several hotel chains invest in the casino-entertainment model to offer to their visitors. In fact, of the 193 member countries of the United Nations (UN), only 37 prohibit so-called "games of chance." Brazil is in the same group as Islamic countries, which prohibit gambling for religious reasons.
To use Greece as an example, mentioned above – one of the countries most affected by the European economic crisis – in 2009 they decided to lift the ban on slot machines and created specific legislation for various types of gambling. Now, the local government expects to increase GDP by 10% over the next ten years because of these initiatives.
Brazil, it seems, is moving towards this promising future. The meetings of the Special Commission on the Regulatory Framework for Gambling in Brazil, in the Chamber of Deputies, hearing from various experts on the subject, allowed for the creation of a very well-structured framework to support the House plenary's decision on the legalization of gambling. Bill 442/1991 is, in fact, better elaborated than Bill 186/2014 on gambling regulation currently being processed in the Senate, in our opinion. This is because the Chamber's bill was more detailed regarding the responsibilities of all federative entities concerning the granting, oversight, control, and allocation of resources for security, health, and various areas of the economy. These resources, it is estimated, would yield R$ 30 billion for Brazilian public coffers. Money that, today, is in the black market, partly because prohibitive legislation has not prevented gambling from generating R$ 18 billion per year in Brazil, according to various surveys presented in the National Congress.
Just as tourism and gambling are directly linked throughout the world, the relationship between lotteries and social issues cannot be overlooked. That's why we at the state lotteries have high expectations regarding the regulation of gambling in Brazil, so that new resources will enter the country through the various modalities that should be permitted, allowing us to strengthen our investments in the various projects that currently only survive thanks to this connection. Here in Rio de Janeiro, 70% of Loterj's profits are entirely invested in associations that guarantee a more dignified life for children, the elderly, and people with disabilities.
For this to happen, the agenda needs to be unblocked. Since the end of last year, the Leaders' request for urgency regarding Bill 442/91 has had its vote postponed. We hope that this scenario will change after Carnival and that the country can take the next step.
(*) Sérgio Ricardo de Almeida is the president of Loterj and published the above article on Fausto Macedo's Blog in O Estado de São Paulo.
