"Despite political havoc, gambling bill is moving fast in Brazil Congress"

A leading figure in the tourist and gaming industries in Portugal Mário Assis Ferreira back in February took part in a Lower House committee debate in Brazil where lawmakers of that country discussed a bill seeking to legalize gaming activity in the South American giant, an appealing market to the Estoril Sol Administration Board he commands.

Estoril Sol runs traditional casinos in Estoril and Povoa de Varzim in Portugal, recently becoming in the first operator to obtain a license for online gaming in that country.

In an interview you granted to Yogonet in March you expressed confidence that the Brazilian Congress would pass the gambling bill if the government managed to secure a “favorable majority” in the Senate and the Lower House, with the gambling legislation ready by the end of this year. Do you still think that? How do you find Brazil's political situation and how do you consider it will impact the parliamentary debate?

I still think that, although Brazil is going through a particularly special time, both from a political point of view and the socio-economic context. Proof of that instability is the impeachment process against President Dilma Rousseff that will take place on August 25-27, that could end with her term in office permanently. 

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Despite thatpolitical uncertainty, including the possibility of Brazil holding anticipated elections, I think the process to legalize gambling is moving at high speed in Congress

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There are three projects of law that depend on the Lower House voting, which will take place in September. One of them, more coherent in regulatory terms, also having received the green light by the Ministry of Revenue, the Federal Police and the government itself, is the project with most chances to be approved.

In the end, I think we will have a coherent legislation, an interesting tax scheme for foreign investment although all projects that I know are very bureaucratic, creating a much more complex and expensive structure to run casinos. Reality will correct this and some utopian definitions. 

The new chairman of the Lower House said he will not support a “full liberalization” of gambling, pointing out that such activities will benefit cities with great tourist potential such as Rio de Janeiro and San Pablo. Do you agree?

That is exactly what I am talking about when I say that some of the projects have an utopian nature. I could not agree more with the new Lower House president, because there are only a few Brazilian cities with enough scale to justify the presence of “casino resorts”, beyond Rio de Janeiro and San Pablo.

The “casino resort” model demands certain frequence in client and income flow and proximity to the city that only a few Brazilian states can guarantee.

This would not block the existence of “multifunctional casinos” in most of the states, where multiple recreational activities, restaurants and cultural shows coexist along with the gambling offer. However, that would not be a “casino resort” in technical and international terms.

That is why I consider that the position that advocates for the creation of “casino resorts” in all Brazilian states will not get past the political intention; reality and pragmatism will show the other way around.