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Brazil’s Betting Companies Protest Against Online Betting Ban

by Sienna Marques
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Brazil's Betting Companies Protest Against Online Betting Ban

In a unified protest against the recent ban on online betting in Brazil, licensed betting companies made their voices heard at top-flight football stadiums. This demonstration, organized by the National Association of Games and Lotteries (ANJL) and the Brazilian Institute of Responsible Gaming (IBJR), took place during matches on Friday and Saturday, where advertising boards displayed messages highlighting the potential consequences of the prohibition.

During the match between São Paulo and Santos on Friday, and the encounter between Atlético-MG and Bragantino on Saturday, company representatives relinquished their advertising space to showcase slogans such as "To prohibit is not to protect" and "The ban doesn’t end gambling."

This protest arises in response to Provisional Measure 1,394, which bans online betting across the nation. The ramifications of this measure extend beyond immediate operations, affecting sponsorship negotiations and long-term investment strategies within the sport.

Plínio Lemos Jorge, president of ANJL, emphasized the importance of maintaining a regulated betting environment, stating that it is essential for clubs, companies, and stakeholders to formulate long-term investment plans with legal certainty. Carlos Lima, president of IBJR, added that deliberations should focus on safeguarding a predictable market built on state-granted authorizations.

The joint manifesto, signed by both ANJL and IBJR, contends that the prohibition does not effectively eliminate betting in Brazil but rather removes protections for bettors. The Ministry of Finance estimates that around 31 million individuals participated on licensed betting platforms, predominantly engaging in responsible and recreational betting.

Since the implementation of the provisional measure on September 25, the illegal gambling market has expanded significantly. This surge raises concerns that not only could betting be pushed underground, but it could also lead to increased vulnerability among bettors. Data from Legitbet, an official monitoring platform associated with ANJL, revealed that 6,401 new illegal betting websites were documented between September 22 and 28, alongside 811 links to these unregulated platforms.

Prior to the ban, illegal betting already comprised 41% of all wagers in Brazil, and projections suggest this could rise to 100% in the near future. The consulting firm LCA warns that potentially up to BRL73 billion ($14 billion) in revenue could be jeopardized from 2027 to 2030 if the demand shifts entirely to illegal operators.

ANJL and IBJR also expressed concern over issues of household debt and problematic gambling behaviors, asserting that a well-regulated market is better equipped to manage these challenges. They are open to discussions about implementing deposit and time limits, more stringent advertising regulations, mental health support, and robust measures to tackle illegal websites. According to them, outright prohibition serves only to drive bettors into unregulated environments, rather than protecting them.

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