Federal Deputy Vermelho (PL-PR) intends to talk with the President of the Senate, Rodrigo Pacheco, to expedite the voting of PL 442/91 that legalizes casinos and other games in Brazil. According to him, the measure can generate tax revenue of more than R$ 20 billion per year and end the impasse generated between the Government and Parliament about the reduction of taxes on the payroll.
The project that extended the payroll tax relief until 2027 was approved by Congress and vetoed by President Lula. In a historic session, Congress overturned the veto last October, but at the end of the year Lula issued a Provisional Measure ending the tax reduction on payroll, claiming that it would generate a deficit of up to R$ 30 billion.
“We were very disappointed with the government's MP because the tax relief we approved benefits 17 sectors of the economy, responsible for generating 9 million direct jobs”, explains Deputy Vermelho.
The tug-of-war between the Government and Congress had its last chapter last week with a meeting between Rodrigo Pacheco and the Minister of Finance. Fernando Haddad said that Congress needs to find a way to avoid this deficit and ensure the balance of the Government's accounts in 2024.
“The project that legalizes gambling could resolve this impasse. According to studies in the possession of the Chamber's Tourism Commission and the Brazil Legal Game Institute, tax collection with the legalization of gambling could generate an estimated revenue between R$ 20 and 40 billion. This would solve the Treasury's problem and end the impasse between the Government and Congress”, believes the parliamentarian.
In addition to casinos, PL 442/91 also legalizes bingo, video bingo, online games, slot machines, animal game, and turf betting. The text was approved in February 2022 in the Chamber of Deputies and sent for consideration to the Senate, where it received the number 2234/2022. According to a survey by the Brazilian Legal Game Institute, the animal game alone has the potential to formalize about 450,000 jobs.
Working Group
Vermelho was part of the Working Group of the Chamber in charge of modernizing and updating the project. “We debated extensively and approved this project. Unfortunately, it is still stalled in the Senate. President Rodrigo Pacheco needs to expedite its voting, as it will be an extraordinary source of job creation and revenue for the Union, States, and Municipalities”, argues Vermelho.
“Brazil already has the animal game and some online games operating outside the law, evading taxes and leaving workers without guarantees. We have already approved the project in the Chamber and the Senate needs to do its part to generate formal jobs, increase tax collection, and invest in social issues”, explains the deputy.
Casinos
Vermelho says that the legalization of casinos “can boost tourism, creating a new era of development in the country, attracting foreign tourists, improving the infrastructure of destinations, growth of neighboring cities, and expansion of the hotel sector”.
There are about two million players who travel the world to bet. From Brazil alone, there are about 200,000. To give you an idea, there is a large and sophisticated network of foreign casino agents in various cities of the country, with logistics and infrastructure suitable for transporting players to international casinos. Several flights depart weekly to these foreign gaming houses, with full support from representatives of famous world casinos.
“Not having a casino in our country implies missing out on the millions of dollars that foreign and Brazilian tourists spend when they travel abroad to gamble, while other countries have casinos as a source of high revenue and tourist attraction, Brazil insists on illegality”, concludes Vermelho.
Foz will also have a casino
The project under discussion establishes that in locations classified as tourism poles or destinations, such as Foz do Iguaçu, the stronghold of Deputy Vermelho, the installation of a casino will be allowed, regardless of the population density of the state in which they are located.
The proposal defines these places as those that have regional identity, adequate infrastructure and offer of tourist services, high density of tourists and title of natural heritage of humanity, in addition to having tourism as an important economic activity.
“For cities like Foz do Iguaçu, we have created the modality of tourist casinos with a large structure for games, restaurants, and amphitheater. We will take advantage of the excellent existing hotel infrastructure, generate more jobs and development”, emphasizes Vermelho.
An integrated resort, with about 3,000 rooms, would cause very serious competition with the current hotel network. “We believe that a casino of this size would have a negative impact on the local network, with bankruptcies and layoffs”, assesses the deputy.
Source: GMB
