In a unified display of dissent, licensed betting firms took to the stadiums of Brazil's premier football league to express their opposition to a recent ban on online betting. This demonstration unfolded over the weekend, coinciding with matches between São Paulo and Santos on Friday, as well as Atlético-MG and Bragantino on Saturday. These companies, aligned with the National Association of Games and Lotteries (ANJL) and the Brazilian Institute of Responsible Gaming (IBJR), utilized advertising boards around the pitch to convey messages such as "To prohibit is not to protect" and "The ban doesn’t end gambling."
This protest is in direct response to Provisional Measure 1,394, which imposes a ban on online betting across Brazil. The ramifications of this ban extend beyond current operations, disrupting future sponsorship agreements and the overall investment landscape within sports.
Plínio Lemos Jorge, the president of ANJL, emphasized the importance of maintaining a regulated environment with clear guidelines. He stated that such regulations are essential for clubs and companies to successfully plan long-term investments. Carlos Lima, the president of IBJR, highlighted the implications of the ban on market predictability, stressing that any regulatory changes should account for the entire sports ecosystem.
The manifesto, jointly released by ANJL, IBJR, and licensed operators, argues that this prohibition does not eradicate betting challenges in the country. Instead, it risks removing protective measures for bettors. The Ministry of Finance reported that around 31 million users were on licensed platforms, primarily participating in responsible betting.
However, since the provisional measure's introduction on September 25, the illegal betting market has escalated sharply in Brazil. The manifesto cautions against this growth, noting its exploitation by organized crime that targets the most vulnerable populations. Data from Legitbet reveals that during just one week, 6,401 new illegal betting websites were identified, with 811 of those linked on monitored channels.
Before the ban, illegal gambling was already a significant concern, accounting for 41% of total betting volume in the country. Current projections suggest this figure could escalate to 100%. According to consulting firm LCA, up to BRL73 billion (approximately $14 billion) in potential revenue could be jeopardized from 2027 to 2030 if demand shifts entirely to illegal operators.
Both ANJL and IBJR reiterated their concern regarding rising household debt and the potential for gambling addiction. They believe a well-regulated market is best equipped to mitigate these challenges. They remain open to discussions around implementing deposit limits, advertising restrictions, mental health support, and enhanced efforts to combat illegal sites, all challenges that cannot be effectively managed in the unregulated market. The conclusion they draw is that prohibition fails to safeguard bettors, instead driving them towards unregulated environments.
