by Steve Norton

CEO, Norton Management 

Brazil: New gaming bill now being debated by Lower House

Casino gaming is a powerful tourism amenity, and many visitors will not visit a resort that doesn't offer it. Some countries, like Singapore, were very opposed to casinos, but realized it could be introduced, and limited to the more affluent population, by introducing entry fees.

Other countries, like the Bahamas, do not permit locals to gamble at their casinos, but they are allowed to work there. But even if you prohibit residents from gambling, they can still visit other jurisdictions that provide this amenity. Singapore has seen it's foreign visitations increase from less than 10 million annually, before the first casino opened in 2012, to more than 15 million last year; and it has helped the 35,000 hotel rooms that existed before the casino resorts, LV Sands and Genting.

One way to protect the local Brazilian population would be to require a certain level of income, or accrued assets, before a local could enter the gaming part of a destination resort. If the country eliminates all local players, then the amount casino developers are willing to invest will diminish, along with the tax potential.