Home Gambling RegulationsBrazilian Betting Companies Protest Lula’s Online Betting Ban

Brazilian Betting Companies Protest Lula’s Online Betting Ban

by Sienna Marques
0 views 3 minutes read
Brazilian Betting Companies Protest Lula's Online Betting Ban

Licensed betting companies took to the fields of Brazilian football stadiums in a significant protest against the recent ban on online betting. During matches held on Friday and Saturday, companies associated with the National Association of Games and Lotteries (ANJL) and the Brazilian Institute of Responsible Gaming (IBJR) utilized advertising boards to communicate their stance, displaying messages such as "To prohibit is not to protect" and "The ban doesn’t end gambling."

This demonstration was sparked by Provisional Measure 1,394, which imposes a nationwide ban on online betting in Brazil. The messages were prominently featured in games between São Paulo and Santos on Friday, as well as Atlético-MG and Bragantino on Saturday, both of which are directly affected by the government's decision.

The measure not only disrupts current agreements but also influences future planning for upcoming sports seasons, negotiations, and sponsorship renewals, impacting overall investment predictability in the sports sector.

Plínio Lemos Jorge, the president of ANJL, emphasized that a regulated and clear legal framework is crucial for clubs and companies to confidently plan long-term investments. Carlos Lima, the president of IBJR, added that the conversation must also focus on the predictability of a market structured around licenses provided by the state.

"Any changes need to consider the ramifications for this ecosystem while safeguarding the legal stability necessary for companies and clubs to fulfill their obligations and strategize for investments," Lima stated.

The manifesto, co-signed by ANJL, IBJR, and various licensed operators in Brazil, contends that the ban will not eliminate betting but instead strip away protections for bettors. The Ministry of Finance has indicated that approximately 31 million individuals were using licensed platforms, most of whom engaged in responsible and recreational betting.

Following the introduction of the provisional measure on September 25, there has been a significant spike in the illegal betting market in Brazil. The manifesto cautions that betting should be legalized, not only to benefit bettors but also for the welfare of Brazilian society at large.

The document highlights the growth of illegal operations, often exploited by organized crime, which disproportionately affects vulnerable populations. Data from Legitbet, ANJL's official tracking platform, shows that between September 22 and 28, there were 6,401 new illegal websites emerging, with 811 links identified to these platforms in monitored sectors.

Prior to the ban, illegal betting accounted for 41% of the wagering volume in Brazil, a figure that is now projected to reach 100%. Consulting firm LCA estimates that if demand shifts entirely to illegal operators, up to BRL73 billion (approximately $14 billion) in revenue could be jeopardized between 2027 and 2030.

ANJL and IBJR also expressed concerns regarding household debt and the potential for problematic gambling, asserting that a well-regulated market is the most effective way to tackle these issues. The organizations are open to discussions on implementing deposit limits, time restrictions, stricter advertising regulations, mental health initiatives, and enhanced measures against illegal websites—actions that cannot be enforced on clandestine operations. They firmly believe that prohibition does not safeguard bettors; instead, it forces them into unregulated and risky environments.

You may also like