Advantages of Games

INCREASE IN REVENUE THROUGH THE LEGALIZATION OF GAMES

With the analysis of the proposals in progress in the House of Representatives for the creation of a regulatory framework for gaming in Brazil, the expectation is of an increase in government revenues. According to entities that support the proposal, it is estimated that gambling in Brazil will generate approximately R$ 55 billion per year, with the prospect of revenues reaching R$ 16 billion.

The proposals presented should make it possible to legalize slot machines, gambling establishments, “jogo do bicho” games, casinos, and other activities that have been prohibited for 70 years. One of the arguments in favor of the decision has been the moment of economic crisis experienced by the country, allowing the reduction of the budget deficit.

According to the Instituto Jogo Legal (Legal Game Institute), illegal games today move around R$ 20 billion. The regulation of games in Brazil should heat up the sector, with estimates that the market moves around R$ 55 billion per year, generating a revenue of around R$ 16 billion.

Besides the increase in revenue

Tourism presents itself as a strong beneficiary of the regulation of games in Brazil. Some speculation points to a possible gambling tourism center in Manaus and some cities in the Northern Region. This would boost tourism in remote capitals. If approved in São Paulo, Rio de Janeiro should also become a hub for this type of tourism. Check the list:

It will be possible to collect taxes that are currently evaded in clandestine games
Decrease the corruption of law enforcement agents who exercise power over the clandestine houses
Estimated generation of more than 400 thousand direct and indirect jobs
Enforcement of the exploitation of gambling (and consequent punishment of those who exploit the game inappropriately)
Greater inspection power by the federal revenue.
Make gambling houses unviable as a mechanism for money laundering
Increase in more than 200% in the tourist potential of the cities
Better perception of the business by society

According to the Brazilian Federation of Accommodation and Food – FBHA, the regulation of games can be an opportunity to overcome the crisis and resume the economic growth of the country.

Current situation

The regulation is in progress in the national congress, heading towards a positive outcome; however, there are still some impasses to be solved, mainly about the destination of the funds and the way the tax is to be levied.

The main argument of the people and entities that are against it – the possibility of money laundering – in simple mathematics proved to be mathematically uninteresting, and there are several other businesses where this procedure can be done for a fraction of the cost of doing it on a sweepstakes business operating legally.

Entities in the hospitality industry and representatives of the segment have been active in favor of regulation and clarification of the population. Athletes and celebrities have taken a stand on the issue, often expressing opinions in favor of regulation.

By a demand from society itself, we keep moving towards the regulation, which is estimated to add directly 16 billion reais per year to the public coffers, thus culminating in an increase in the country’s current tax revenues.