Brazilian Heat: Adelson Eyes Brazil in $8 billion Casino Bid
Published June 2, 2017 by Brett C
Sheldon Adelson, casino mogul of The Sands Group, is planning a massive $8 billion investment in a casino resort. Adelson recently met with the Brazilian President, Michel Temer to discuss ways of moving forward with regulating the casino industry.
Las Vegas casino mogul, Sheldon Adelson, was recently in Brazil where he announced plans for an $8 billion casino resort. However, Adelson cautioned that widespread infrastructure development is necessary in Brazil. Adelson held meetings with President Michel Temer and ranking officials from the Brazilian government for his pitch. These included the President of the Chamber of Deputies, and the Minister of Tourism.
Big Investments in Major Brazilian Cities
Sheldon Adelson, the Chief Executive Officer of The Sands Group, is seeking to invest in Sao Paulo, Rio de Janeiro, and another city. The government of Brazil has outlawed gambling for 70 years, and The Sands Group CEO wants clear legislation to invest in the country. Adelson is a vocal critic of sports betting, video bingo games, and online casino games. For Adelson, his main interest is in the Singaporean style of gambling where there are a limited number of casinos operating legally.
Corruption Scandals Endemic in Gambling Industry Brazil
For now, Adelson’s Sands Group is deeply invested in Macau and Las Vegas, and Brazil would be the third largest market for the company. Presently, Brazil gambling regulations are on the back burner as corruption scandals ensue in the country. Various federal lawmakers have been receiving bribes from Eike Batista – an oil magnate. The oil magnate is under house arrest for malfeasance and money laundering.
The ex-governor of Rio De Janeiro, Sergio Cabral purportedly received a sum of $16.5 million from Batista. These serious allegations could dent any chances of reforms in Brazil’s gambling laws vis-à-vis online gambling legislation. If the disgraced mining and oil billionaire provides evidence of bribes he made to Brazilian lawmakers, casino legislation could be jeopardized. Batista’s goal was to team up with foreign companies to create a casino from the Hotel Gloria in Rio.
If Batista is found guilty of paying $16.5 million to the governor of Rio, Sergio Cabral then this will negatively impact any bills on casino legislation. The Chamber of Deputies (COD) is currently discussing the licensing of up to 35 casinos, with at least 1 for each of the 27 Brazilian states. Major Brazilian cities such as Minas Gerais, Rio and Sal Paulo will likely have permission to run 3 gambling resorts.
