BRAZIL REPORT
overrising view of those against is a conservative point of view based on the negative social impact that gambling could cause. On other hand, those in favour believe gambling may improve the economy of the country. President Jair Bolsonaro is influenced by both groups.
Despite strong resistance from some in the ministerial core – mention must be made that Minister Damares Alves, evangelical and conservative who has already announced her position against all gambling operations -, one of President Jair Bolsonaro’s sons is much in favour of the casino business. Senator Flávio Bolsonaro (Republicanos/ RJ) was in an official mission and met with important players of the gambling sector to discuss the possibility of allowing casinos in Brazilian territory. As may be surmised, he is considered an important adviser to the Administration. It is well known that as a consequence of the Coronavirus pandemic Brazilian economy has been greatly impacted on tax collection and the tendency is that this will get worse, and while Brazil ministerial staff is assessing all economic options, it has already stated that Brazil must redraw priorities and adopt alternative legal remedies to expand tax collection. Changes and political ascendancy in Brazil’s Executive and the Ministry of Economy in the past few weeks along with resignations may have an impact and weaken economic policies that this Government is trying to implement, in particular those dependent of Congress approval. However, great pressure to increase spending to mitigate the economic impact arising from the coronavirus crisis may have a major impact on the political structure closest to the President, especially in the relationship between the economic team and the Government, paving the way for greater influence by “centrão”. The group named as “centrão” is an informal group of
congressmen from different political parties who support the government in exchange for taking part in choosing political appointees. It has a more conservative base, largely composed of evangelical congressmen, and their main characteristic is that they are responsible for
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presenting and defending projects to increase spending. The leaders of “centrão” are moving to guarantee even more space in the main economic agendas and work side by side with the President, having more influence in economic policies.
On other hand, one of the biggest obstacles to the
approval of a new Regulatory Framework for Gambling in Brazil is the evangelic caucus, a group of congressmen with great expressiveness in the Legislative branch. The evangelic caucus represents one of the pillars of the
current Government and one of the reasons why the President was elected to his current mandate. It represents conservative values and believes that gambling goes against good customs and traditional Brazilian family. This group represents a good part of the President’s supporters. Therefore, the debate to approve any sort of gambling activities in Brazil must engage in the possibility of convincing this group and change their opinion or, at very least, compromise so that it remains neutral during the discussions. Brazil’s fiscal situation is one of the points to be
reassessed by the current Government and the Congress. With the weakening of the Ministry of Economy (owing to departure of part of his staff and Paulo Guedes’ image before Congress), more conservative in spending, there is a space that “centrão” might fill, showing their influence on setting priorities in the agenda. Estimates of revenue loss during quarantine period show a gap in Brazil’s revenue. To recover it, the Government is studying mechanisms for expanding tax collection and had already submitted part of a tax reform. Gambling activities seem as one of the viable alternatives that can expand tax collection, promote jobs, and attract foreign investments. In the current scenario, the casino alternative could be considered as an economic urgency to speed up studies on the matter.
Resorts infrastructure for casinos operation: The possibility of implementing integrated resort casinos is under discussion at the Interministerial Committee for opportunities in the tourism sector.
Jose Luis Stephens/Adobe Stock
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