Zona de Azar Brazil – Brazil: The Impact of Casinos on Tourism is the Subject of Divergence in Debate

Brazil.- 13 de Maio de 2024  www.zonadeazar.com  At the public hearing of the Constitution and Justice Commission (CCJ) this Thursday (9), participants disagreed on the impact of the liberalization of gambling on tourism.

The discussion was promoted at the request of senators Carlos Viana (Podemos-MG) and Eduardo Girão (Novo-CE) to examine a project that legalizes casinos, bingos, Jogo do Bicho and betting on horse races.

The Chamber’s Bill (PL) 2,234/2022, under the rapporteurship of Senator Irajá (PSD-TO), is being evaluated in the committee, with the presidency of Senator Marcos Rogério (PL-RO).

According to what was reported by Agência Senado, the national secretary of Infrastructure, Credit and Investments of the Ministry of Tourism, Carlos Henrique Sobral, stated that Brazil continues to receive around 6 million international visitors annually, without growth. He argues that the release of casinos could boost the tourism sector.

“We haven’t passed that number in years. It is a challenge that the Ministry of Tourism has”, said Sobral.

The federal government predicts a 20% increase in the current 214,000 jobs linked to tourism if gaming is legalized, in addition to a 1.2% growth in tourism’s share of GDP. Currently, the tourism sector represents 8% of GDP , according to Sobral.

The vice president of Hard Rock International Casino Operations, Alex Pariente, highlighted the significant number of Brazilians who travel to Las Vegas, in the United States, to play in casinos. He believes that these people could be contributing to the Brazilian economy.

“If we can use all types of resources, in a very controlled way, to strengthen tourist arrivals, instead of exports as they exist today, I think it is a very important benefit. In Las Vegas, the Brazilian international market was the third [largest]. This export of tourists is not insignificant. […] The USA has 1,011 commercial casinos, with an economic impact of US$328 billion”, said Pariente.

The importance of Brazilians looking for casinos in Las Vegas was questioned by senators Jorge Seif (PL-SC) and Girão. Girão argued that the release of casinos will not increase the interest of foreigners, as the segment is legal in many countries.

“The games will not help attract foreign tourists. The guy will wake up in France, where there is [legalized] gambling, a neighboring country [with legalized gambling] everywhere in Europe, and he will [think] “it made me want to play, I want to play in Brazil”?, asked the senator.

According to the prosecutor of the Public Ministry of Minas Gerais (MPMG), André Estevão Ubaldino Pereira, the growth of tourism in Brazil is hampered by public security issues, such as homicides and their link with drug trafficking. He argues that the approval of the bill will strengthen criminal organizations and have a negative impact on tourism.

“We have approximately 40 thousand homicides per year. This is what prevents foreign tourists from coming here, precisely because we live in a country with serious risk. Drug trafficking only survives because we do not create mechanisms to inhibit money laundering. This atrocious violence that we are experiencing is the consequence of a criminal activity that will be exponentially encouraged if gambling is legalized.”

Hearing at the Constitution and Justice Commission (CCJ) was held this Thursday (9)

At the public hearing of the Constitution and Justice Commission (CCJ) this Thursday (9), participants disagreed on the impact of the liberalization of gambling on tourism. The discussion was promoted at the request of senators Carlos Viana (Podemos-MG) and Eduardo Girão (Novo-CE) to examine a project that legalizes casinos, bingos, Jogo do Bicho and betting on horse races. The Chamber’s Bill (PL) 2,234/2022, under the rapporteurship of Senator Irajá (PSD-TO), is being evaluated in the committee, with the presidency of Senator Marcos Rogério (PL-RO).

According to what was reported by Agência Senado, the national secretary of Infrastructure, Credit and Investments of the Ministry of Tourism, Carlos Henrique Sobral, stated that Brazil continues to receive around 6 million international visitors annually, without growth. He argues that the release of casinos could boost the tourism sector.

“We haven’t passed that number in years. It is a challenge that the Ministry of Tourism has”, said Sobral.

The federal government predicts a 20% increase in the current 214,000 jobs linked to tourism if gaming is legalized, in addition to a 1.2% growth in tourism’s share of GDP. Currently, the tourism sector represents 8% of GDP , according to Sobral.

The vice president of Hard Rock International Casino Operations, Alex Pariente, highlighted the significant number of Brazilians who travel to Las Vegas, in the United States, to play in casinos. He believes that these people could be contributing to the Brazilian economy.

“If we can use all types of resources, in a very controlled way, to strengthen tourist arrivals, instead of exports as they exist today, I think it is a very important benefit. In Las Vegas, the Brazilian international market was the third [largest]. This export of tourists is not insignificant. […] The USA has 1,011 commercial casinos, with an economic impact of US$328 billion”, said Pariente.

See also: CCJ debates in public hearing the release of casino, bingo, Jogo do Bicho and other games of chance

The importance of Brazilians looking for casinos in Las Vegas was questioned by senators Jorge Seif (PL-SC) and Girão. Girão argued that the release of casinos will not increase the interest of foreigners, as the segment is legal in many countries.

“The games will not help attract foreign tourists. The guy will wake up in France, where there is [legalized] gambling, a neighboring country [with legalized gambling] everywhere in Europe, and he will [think] “it made me want to play, I want to play in Brazil”?, asked the senator.

According to the prosecutor of the Public Ministry of Minas Gerais (MPMG), André Estevão Ubaldino Pereira, the growth of tourism in Brazil is hampered by public security issues, such as homicides and their link with drug trafficking. He argues that the approval of the bill will strengthen criminal organizations and have a negative impact on tourism.

“We have approximately 40 thousand homicides per year. This is what prevents foreign tourists from coming here, precisely because we live in a country with serious risk. Drug trafficking only survives because we do not create mechanisms to inhibit money laundering. This atrocious violence that we are experiencing is the consequence of a criminal activity that will be exponentially encouraged if gambling is legalized.”

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