The Brazilian betting industry has seen over 3,500 job losses in the wake of Provisional Measure 1.394, which has prohibited licensed sportsbooks from operating in the country. This figure accounts for 23% of the sector's entire workforce and is based on a partial report from the National Association of Games and Lotteries (ANJL), utilizing data from betting operators and released last Wednesday.
In addition to the immediate layoffs, a further 4,167 employees are currently on collective furlough. ANJL warns that if the situation doesn’t change, total layoffs could escalate to 5,600 workers within the next 90 days, translating to about 37% of the workforce in the betting sector.
The survey details job losses since the announcement made by President Luiz Inácio Lula da Silva on September 25. "We need real numbers to gauge the measure's effects on the workers and companies that rely on this activity," remarked ANJL president Plínio Lemos Jorge.
The data illustrates a troubling scenario for families in Brazil, many of whom are losing significant portions of their income as a result of a government action characterized by some as politically motivated. Lemos Jorge pointed out, "It is no coincidence that we use the term ‘betting industry’ because that is exactly what it is. The sector encompasses various companies, including payment processors, marketing, compliance, agencies, affiliates, 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 a bid to counter Lula's decree, the ANJL, along with the Brazilian Institute of Responsible Gaming, has filed a lawsuit with the Supreme Federal Court urging for the ban's reversal. The wait for a ruling on a preliminary injunction that seeks to suspend the provisional measure, under the review of Justice Luiz Fux, could lead to the conversion of furloughed employees into permanent layoffs.
“This situation reinforces the urgency of reviewing the request to suspend the PM,” Lemos Jorge asserted.
