The Brazilian betting industry has witnessed significant job losses, with more than 3,500 workers laid off since the introduction of Provisional Measure 1.394, which prohibits licensed sportsbooks from operating in the country. This figure accounts for 23% of the total workforce in this sector, based on recent findings from the National Association of Games and Lotteries (ANJL), which were shared last Wednesday.
In addition to the laid-off workers, another 4,167 employees are currently on collective furlough. ANJL anticipates that layoffs could escalate to 5,600 within the next 90 days, representing 37% of the industry's workforce.
The survey covers job losses that have occurred since September 25, the date when President Luiz Inácio Lula da Silva announced the measure. "We need real numbers to gauge the measure's effects on the workers and companies that rely on this activity," stated Plínio Lemos Jorge, president of ANJL.
This situation has created a severe financial impact on numerous Brazilian families, many of whom find themselves losing their source of income due to a decision perceived by some as politically motivated. "It is no coincidence that we use the term 'betting industry' because that is exactly what it is," Lemos Jorge emphasized, explaining that the sector includes not just sportsbooks but also payment processors, marketing, compliance firms, and specialized media outlets.
He added, "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."
In reaction to Lula’s measure, ANJL, along with the Brazilian Institute of Responsible Gaming, has filed a lawsuit with the Supreme Federal Court seeking to reverse the ban. The pending decision on an injunction requesting to suspend the provisional measure, under the oversight of Justice Luiz Fux, could convert some of the furloughed positions into permanent job losses.
"This is, therefore, another factor that reinforces the urgency of reviewing the request to suspend the PM," stated the ANJL president.
