The Novo Desenrola Brasil programme, recently launched by the government, aims to help indebted families renegotiate their contracts and achieve improved financial stability. However, officials warn that a ban on gambling could lead many to seek out illegal betting platforms instead of licensed ones.
Plínio Lemos Jorge, president of the Brazilian National Association of Games and Lotteries (ANJL), expressed concerns over this potential shift. "A gambler who may be in debt but still plays on a website authorised by the Ministry of Finance will not stop gambling. They’ll end up on one of the thousands of illegal platforms and will remain just as indebted, or even more so," he explained.
Lemos Jorge acknowledged that the programme provides valuable proposals for enhancing the financial well-being of Brazilians through debt renegotiation and interest rate reductions. Nevertheless, he highlighted that certain aspects related to gambling websites could complicate debt situations for some individuals.
He countered the perception that gambling is a primary cause of debt, citing data from Serasa Experian, which revealed that as of March, 82.8 million Brazilians were in debt, amounting to 49% of the population. The federal government’s Betting Management System recorded nearly 10 million individuals placing bets on licensed websites that month. "There’s no way of knowing how many of these gamblers are in debt," he stated.
He further analyzed the data, suggesting that if half of these bettors are in debt, it would mean around five million people from a population of 82.8 million, making up about 6% of bettors. Among them, 47% have reported debts to banks, while 21% owe utility bills. This indicates that more than 80% of debts are tied to miscellaneous expenses, not gambling.
The ANJL emphasizes that blaming gambling sites and restricting access for bettors on legal platforms is misguided. Lemos Jorge stated, "Preventing beneficiaries from gambling is not the right approach," arguing that gambling represents only 0.46% of household spending and cannot be directly linked to debt. He criticized the prevailing narrative propagated during the election year and suggested that high-interest rates and easy access to expensive credit are significant contributors to household financial troubles.
He illustrated this with an example: "If someone has BRL10,000 ($2,000) in credit card debt and another BRL5,000 in overdrafts, the problem isn’t the average monthly spending of BRL50 on gambling, which is a form of leisure. It’s the snowballing interest they pay to financial institutions."
Addressing illegal betting, he noted that regulatory authorities like the Secretariat of Prizes and Bets (SPA) and Anatel (Brazilian National Telecommunications Agency) face challenges in blocking clandestine websites. As of April, 39,000 illegal websites have been blocked, but new ones emerge almost immediately after takedowns. Lemos Jorge warned that banning gambling could drive users towards the illegal market, undermining the objectives of the Novo Desenrola Brasil programme.
He attributed the spread of misinformation about the gambling sector to multiple factors, including a regulatory vacuum that allowed harmful practices to thrive and a power struggle among various economic sectors. He argued that media coverage often amplifies stories of individuals who have lost large sums, without distinguishing between legal and illegal platforms. Lemos Jorge asserted that the upcoming elections have further fueled negative perceptions of the industry.
He believes that gambling companies will face continued scrutiny due to their portrayal as scapegoats for broader societal issues. Lemos Jorge remarked, "Brazil has a number of problems to solve, most of which are historical, but aren’t limited to one government or another. But in this campaign, gambling is being made the scapegoat for all of them."
The ANJL sees it as their duty to correct misinformation and advocate for responsible gambling, emphasizing its role as a form of entertainment rather than a way to generate income. Responding to claims made by the Brazilian National Trade Confederation (CNC) about gambling companies withdrawing nearly BRL144 billion from the market, Lemos Jorge expressed skepticism about these figures, asserting they are disconnected from market realities. He called for fair treatment across all sectors of the economy.
Recently, President Lula appeared to shift his stance on gambling, focusing more on financial rehabilitation initiatives rather than condemning the industry. This shift is a result of ANJL's proactive dialogue with the government, providing data showing that gambling-related spending constitutes a small portion of household budgets and that the industry significantly contributes to tax revenues. Lemos Jorge emphasized the essential role of the regulated industry in generating jobs and income in Brazil.
Finally, he asserted that accurate information must be communicated to the government and public. ANJL is committed to ongoing discussions through various channels, understanding that opponents will continue to spread misinformation. Lemos Jorge concluded by stressing that Brazil should not abandon hard-earned regulations, as dismantling the regulated gambling industry could push consumers into unverified illegal platforms, jeopardizing their interests and well-being.
