Brazil Betting Ban Triggers Over 3,500 Job Losses, Industry Survey Finds
Data from the National Association of Games and Lotteries reveals that more than 3,500 people have been made redundant since President Lula's Provisional Measure banned licensed sportsbooks, with thousands more on furlough.
- More than 3,500 jobs have been lost in Brazil's betting sector since a government ban was introduced on 25 September.
- The figure represents 23% of the industry's workforce, with a further 4,167 employees currently on collective furlough.
- Industry bodies have filed a lawsuit with the Supreme Federal Court seeking to have the ban overturned.
More than 3,500 jobs have been lost in the Brazilian betting industry following the introduction of a government measure banning licensed sportsbooks. The figures, which cover contract terminations and layoffs since 25 September, were released last Wednesday as part of a partial survey conducted by the National Association of Games and Lotteries (ANJL).
The job losses stem directly from Provisional Measure 1.394, which was announced by President Luiz Inácio Lula da Silva and effectively halted the operations of licensed betting companies in the country.
Workforce decimated by measure
According to the survey data, which was compiled from information supplied by betting operators, the 3,500 redundancies account for 23% of the sector's entire workforce. The immediate impact extends further, with an additional 4,167 employees currently placed on collective furlough as companies grapple with the operational shutdown.
The ANJL projects that the situation is set to worsen significantly in the near future. The organisation forecasts that total layoffs could reach 5,600 within the next 90 days. Such a figure would represent 37% of all workers employed in the Brazilian betting industry, indicating a severe contraction for the sector.
We need real numbers to gauge the measure's effects on the workers and companies that rely on this activity.
Industry launches legal challenge
In response to the government's ban, the ANJL has joined with the Brazilian Institute of Responsible Gaming to take legal action. The two organisations have filed a lawsuit with the Supreme Federal Court, calling for the provisional measure to be overturned.
The legal challenge is currently under the rapporteurship of Justice Luiz Fux, who will oversee the case as it proceeds through the nation's highest court. The industry is seeking to reverse the policy that has already had a substantial and immediate effect on employment and business continuity.
