Since the enactment of Provisional Measure 1.394, which bans licensed sportsbooks from operating in Brazil, over 3,500 employees in the betting industry have faced job loss. This figure represents 23% of the entire workforce in this sector, according to a partial survey conducted by the National Association of Games and Lotteries (ANJL). The survey utilized data provided by betting operators and was released last Wednesday.
In addition to those laid off, 4,167 workers are currently on collective furlough. The ANJL estimates that within 90 days, total layoffs could reach as high as 5,600, which would account for 37% of the workforce in the industry.
The survey only accounts for layoffs and terminations that have occurred since September 25, the date President Luiz Inácio Lula da Silva announced the measure. ANJL President Plínio Lemos Jorge expressed the need for concrete data to fully assess the impact of this measure on employees and companies dependent on the betting industry.
The announcement of job losses has sent shockwaves through many Brazilian families as they lose income due to what some describe as a politically motivated decision. Lemos Jorge remarked on the nature of the 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 emphasized the personal toll of these job losses, highlighting the uncertainty faced by families connected to the industry.
In response to the provisional measure, the ANJL and the Brazilian Institute of Responsible Gaming have filed a lawsuit with the Supreme Federal Court seeking to overturn the ban. The outcome of a preliminary injunction regarding this measure—currently under the consideration of Justice Luiz Fux—could determine whether the furloughed employees will remain on unpaid leave or face permanent layoffs. Lemos Jorge underscored the urgency of reviewing the request to suspend the Provisional Measure, noting, “This is, therefore, another factor that reinforces the urgency of reviewing the request to suspend the PM.”
