Since the announcement of Provisional Measure 1.394, banning licensed sportsbooks in Brazil, the betting industry has seen more than 3,500 employees lose their jobs. This figure, representing 23% of the entire workforce in the sector, comes from a partial survey conducted by the National Association of Games and Lotteries (ANJL). The survey, which draws on data from betting operators, was released last Wednesday.
Beyond the 3,500 layoffs, an additional 4,167 workers are currently on collective furlough. ANJL estimates that the number of layoffs could rise to 5,600 within the next 90 days, which would account for 37% of the industry's workforce.
The data pertains to job losses and contract terminations occurring since September 25, the date President Luiz Inácio Lula da Silva announced the controversial measure.
"We need real numbers to gauge the measure's effects on the workers and companies that rely on this activity," stated ANJL president Plínio Lemos Jorge in a recent communication to betting operators.
The fallout from the measure has hit thousands of Brazilian families, jeopardizing livelihoods due to what many view as an election strategy rather than an economic necessity. Lemos Jorge characterized the industry as one intertwined with various companies, including payment processors, marketing firms, compliance agencies, affiliates, and specialized media outlets. "Each of these families is watching a member lose their job due to an unconstitutional decision that has yet to be judged by the Supreme Federal Court," he remarked.
In response to the provisional measure, the ANJL and the Brazilian Institute of Responsible Gaming have filed a suit with the Supreme Federal Court, seeking to overturn the ban. The pending decision on the preliminary injunction regarding the suspension of the measure — specifically under the oversight of Justice Luiz Fux — could lead to more permanent layoffs from the currently furloughed 4,167 employees.
"This is, therefore, another factor that reinforces the urgency of reviewing the request to suspend the PM," concluded Lemos Jorge.
