The Brazilian betting industry has been hit hard, with over 3,500 workers losing their jobs following Provisional Measure 1.394, which prohibits licensed sportsbooks from operating in the country.
This number reflects 23% of the total workforce in the sector, derived from a partial survey conducted by the National Association of Games and Lotteries (ANJL). The data, provided by betting operators, was released last Wednesday.
In addition to these layoffs, 4,167 employees have been placed on collective furlough. The ANJL predicts that within 90 days, the total number of layoffs could reach 5,600 workers, amounting to 37% of the workforce.
The survey details job losses since September 25, the day 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,” remarked ANJL president Plínio Lemos Jorge in a statement directed to betting operators.
The impact of this decision is significant, affecting thousands of Brazilian families who are now facing reduced incomes or complete job losses due to what many view as a politically motivated move.
“It is no coincidence that we use the term ‘betting industry’ because that is exactly what it is,” Lemos Jorge explained. “The sector includes various companies such as payment processors, marketing firms, compliance agencies, affiliates, and specialized media outlets. Each of these families is witnessing a member losing their job due to an unconstitutional decision that has yet to be adjudicated by the Supreme Federal Court.”
In light of Lula’s provisional measure, the ANJL alongside the Brazilian Institute of Responsible Gaming has filed a lawsuit in the Supreme Federal Court seeking to overturn the ban.
The pending ruling on a preliminary injunction to suspend the measure, particularly in cases overseen by Justice Luiz Fux, could determine whether the 4,167 furloughed employees will face permanent layoffs.
“This is, therefore, another factor that reinforces the urgency of reviewing the request to suspend the PM,” stated the ANJL president.
