Since the enforcement of Provisional Measure 1.394, which prohibits licensed sportsbooks from operating in Brazil, over 3,500 individuals employed in the betting sector have lost their jobs. This number accounts for 23% of the industry’s total workforce and is based on a partial survey conducted by the National Association of Games and Lotteries (ANJL), utilizing data from betting operators and revealed last Wednesday.
Besides those already laid off, an additional 4,167 workers are currently on collective furlough. ANJL forecasts that the number of layoffs may escalate to 5,600 within the next three months, representing 37% of all workers in the sector. The survey reflects job losses and terminations since September 25, the day President Luiz Inácio Lula da Silva announced the measure.
ANJL president Plínio Lemos Jorge emphasized the necessity for accurate data to understand the measure's impact on affected workers and the businesses dependent on this sector. He stated, “We need real numbers to gauge the measure's effects on the workers and companies that rely on this activity.”
The figures indicate a severe fallout for countless Brazilian families facing income loss due to what some critics consider an election-driven move. Lemos Jorge pointed out the diversity within the betting industry, stating, “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 further added that many families are witnessing job losses due to an unconstitutional decision yet to be assessed by the Supreme Federal Court.
In response to the provisional measure, the ANJL and the Brazilian Institute of Responsible Gaming have taken legal action, filing a lawsuit with the Supreme Federal Court to challenge the ban. The ongoing wait for a decision on the preliminary injunction that seeks to suspend the measure—currently overseen by Justice Luiz Fux—could potentially transform a portion of the 4,167 furloughed employees into permanent layoffs. "This is, therefore, another factor that reinforces the urgency of reviewing the request to suspend the PM,” Lemos Jorge concluded.
