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More than 3,500 workers have lost their jobs in Brazil’s betting industry since President Luiz Inácio Lula da Silva signed Provisional Measure (MP) 1,394 on 25 September, prohibiting fixed-odds betting, including sports betting and online casino games. According to a preliminary survey by the National Association of Games and Lotteries (ANJL), the redundancies represent 23 per cent of the sector’s workforce.
The association also reported that 4,167 employees have been placed on collective leave, while projecting that job losses could reach 5,600 within 90 days, equivalent to 37 per cent of the industry’s workforce.
Industry warns of wider job losses
ANJL’s findings are based on information supplied by betting companies covering dismissals and contract terminations since the ban was announced on 25 September, with responses requested by 7 October. ANJL President Plínio Lemos Jorge warned that the impact extends beyond licensed betting operators to payment providers, marketing agencies, compliance specialists, affiliates and industry media.
The ban came into immediate effect on 25 September, giving players until 5 October to withdraw their balances and requiring betting websites and applications to cease operations from 6 October. The measure also provides for existing operating authorisations to be extinguished within 30 days and prohibits betting-related advertising, sponsorship and payment services.
Legal challenges mount
Industry associations, including ANJL and the Brazilian Institute of Responsible Gaming (IBJR), alongside broadcasters’ association Abert, have challenged the measure before the Supreme Federal Court (STF).
The cases are being considered under Justice Luiz Fux, with petitioners seeking an injunction to suspend the restrictions. Lemos Jorge described the measure as “unconstitutional” and called for an urgent ruling, warning that further redundancies could follow if the ban remains in place.
Meanwhile, Congress has received at least 26 proposed amendments to the provisional measure, including provisions seeking proportional refunds of licensing fees and a 24-month transitional period for football shirt sponsorship agreements.
Betting traffic falls 74 per cent
The commercial impact is already evident, with analytics company Blask reporting a 74 per cent decline in traffic to licensed betting websites within a week of the ban taking effect. The provisional measure must receive congressional approval within 120 days to remain in force.
With thousands of employees already dismissed or on collective leave, the industry’s immediate future now depends on the outcome of legal challenges and the progress of the measure through Congress.
