Since the introduction of Provisional Measure 1.394, which prohibits licensed sportsbooks from operating in Brazil, more than 3,500 employees in the betting industry have lost their jobs. This figure, accounting for 23% of the entire workforce, was derived from a partial survey conducted by the National Association of Games and Lotteries (ANJL), using data reported by betting operators and released last Wednesday.
In addition to these job losses, another 4,167 workers are currently on collective furlough. The ANJL predicts that the total number of layoffs could rise to 5,600 within the next 90 days, amounting to 37% of the sector's workforce.
This survey includes layoffs and contract terminations that have occurred since September 25, the date President Luiz Inácio Lula da Silva announced the measure.
Plínio Lemos Jorge, president of the ANJL, emphasized the need for accurate data to assess the measure's impact on employees and enterprises dependent on this industry. "We need real numbers to gauge the measure's effects on the workers and companies that rely on this activity," he stated.
The data underlines a serious financial strain on thousands of Brazilian families facing diminished incomes due to what many view as a politically motivated decision. Lemos Jorge elaborated, "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. Each of these families is watching a member lose their job due to an unconstitutional decision that has yet to be judged by the Supreme Federal Court."
In reaction to Lula's 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 pending decision on a request for a preliminary injunction to suspend the provisional measure — specifically under the review of Justice Luiz Fux — could result in a portion of the 4,167 furloughed employees facing permanent layoffs.
Lemos Jorge noted, "This is, therefore, another factor that reinforces the urgency of reviewing the request to suspend the PM."
