Marcelo Freixo, President of the Brazilian Tourism Institute (Embratur), has confirmed that the federal entity is closely following the development of the gambling industry and analyzing how it could help boost tourism.
The industry is reportedly interested in promoting gambling and betting regulation in Brazil, mainly to be able to have casinos and, consequently, welcome local and foreign residents.
In his role as a Representative, Freixo voted against Bill 442/91 in February 2022, which ended up with a positive vote and was sent to the Senate, but then did not receive Bolsonaro’s nod.
Brazilian residents currently visit nearby cities in Uruguay and Argentina to bet and experience live gambling in casinos. However, approving casino resorts in the Portuguese-speaking country would increase the tourist attraction of many smaller local towns.
Despite the fact that Brazil doesn’t have a firm regulation, it is clear that betting and gaming services are still offered. The downside, however, is that it doesn’t benefit state coffers or the public in general.
In an interview with Rádio BandNews, Freixo defended the regulation that “has already been approved in the Chamber of Deputies and needs to be approved in the Senate.”
“I think this industry is already happening in many places, but we need to analyze the situation very carefully,” he said.
The former Representative and President of Embratur explained that this is a Public Safety debate and that it should involve the Federal Police on topics such as money laundering.
“We cannot be irresponsible,” he said, and assured that the country needs to discuss the issue by taking into account that gambling could contribute to tourism.
“It can be important as long as it’s done carefully and responsibly. But it’s something that we’re considering,” he stressed.
The Brazilian media highlighted that Freixo’s change of mind from the historic vote in February 2022 is due to the fact that Embratur would be the one of the largest beneficiaries with 12% of the total funds.
How Embratur would benefit from betting
The Tourism Agency would receive funds from CIDE-Juegos, a tax collection regime that diverts resources generated by betting to different areas of public development. It also exempts operators from taxes already enforced, like ISS, PIS/PASEP, Cofins, IRPJ and CSLL.
Besides Embratur, CIDE-Juegos would allocate 10% of the funds to financing sports programs, 16% to the State participation Fund (FPE) and another 16% to the Municipal Participation Fund (FPM).
Furthermore, 6% would be invested in Public Safety, 5% in actions to prevent natural disasters, 5% to rebuild areas affected by natural disasters, 4% for public health, 4% for gambling programs, 4% for the National Fund for Children and Adolescents, 4% to finance programs to support animals and 4% for the Student Financing Fund.
Experts estimate that with this regulatory project, Brazil would collect $3.8bn annually in taxes, generate 200,000 jobs and formalize another 450,000. Along with land-based casinos, the regulation would also contemplate igaming, sports betting, bingo, jogo do bicho and other verticals.
