“Brazil will have a gambling law by the end of the year”

Estoril Sol SGPS SA is a Portugal-based holding company engaged in the leisure and tourism sector. Through its subsidiaries and associated companies, the company is involved in the operation of gambling licenses and provision of gambling services in casinos, as well as in the management of real estate properties in the tourism sector. The company operates three casinos located in Portugal: Casino Estoril, Casino Lisboa amd Casino Povoa de Varzim.

Mário Assis Ferreira, who currently chairs Estoril-Sol's Board of Directors, has a vast experience in the tourism and casino industries. He's also president of the Junta General del Consejo de la Asociación Portuguesa de Casinos (General Meeting of the Portuguese Casino Association)

You recently participated in a public hearing to discuss the proposed bill that would legalize gambling in Brazil. What were the key aspects of the debate surrounding the legalization of gambling in the country?

During the debate that took place on February 24 at the Chamber of Deputies, we focused on what I believe is a huge contradiction: Brazil is one of the most unregulated markets I know, and at the same time, is a country with one of the highest rates of illegal gambling. The absence of gambling regulation leads to tax evasion and encourages both problem gambling and money laundering.

Bearing all this in mind -and hoping we'll soon be adopting a strict and coherent regulatory framework- I introduced a set of measures that solve the concerns that lie at the root of this matter. The solutions presented include:

- Responsible gambling

-Casinos as recreation and leisure facilities (cultural offering, shows, malls, haute cuisine)

-Solutions to combat money laundering

-Strict regulations for online gaming – mitigation of its impact on land-based gaming

- Minimum distance separation (150km) between casino locations to avoid cannibalization

-Only +18 allowed

-Fiscal regime that attracts junket players

Do you believe casinos should be placed in special gambling zones?

No, I think licensees should have the freedom to select the locations they want, as long as their choices do not interfere with law. But I do believe large casinos should be placed in Brazil's largest urban areas so that players have easier accessibility to the gambling facilities.

Where would you place both the casinos and bingo halls and why?

San Pablo, Rio de Janeiro, Belo Horizonte, Porto Alegre y Recife would be the best cities due to their population density and economic potential.

What would be the best and worst-case scenarios?

Best-case scenario would be to have a strict and coherent regulation that protects everyone and does not create a hostile environment between the different gambling activities.

Worst-case scenario would be to leave things as they are, and continue to allow the proliferation of illegal gambling, tax evasion, money laundering and unethical practices.

There have been several attempts to legalize gambling in Brazil. Will third time be the charm?

I sincerely believe that if the Government keeps a majority in the Senate and the House of Deputies – just as it does now – Brazil will have its gambling law by the end of the year and each type of gambling activity will be regulated in 2017.

What are Casino Estoril's plans in Brazil?

Brazil's definitely an appealing market for us, but it all depends on the coherence and economic-financial viability of the legislation.