Sports betting platforms have become ubiquitous in Brazilian media. From broadcast television to social networks, it is impossible to go a day without seeing an advertisement from one of the scores of companies operating in the country.
As of last week, 108 companies had requested the Finance Ministry to officially start operating their 113 brands in Brazil in 2025 — sports betting and other types of online gambling platforms were made legal in 2018, but as of January, only those complying with the new regulations will be allowed to continue operating. If all of them are authorized, the government will collect up to BRL 3.4 billion (USD 620 million) in concessions this year alone. More companies are expected to join this list in the following six months, when a new batch of analyses is set to happen.
All those who receive the green light will have to promote campaigns on responsible betting and preventive measures to avoid game addiction. The adverse effects of the activity, however, seem to be rapidly getting out of control. Recent studies commissioned by retailers and different surveys with players paint a worrying picture that is far from being addressed by the regulations under implementation.
A survey of more than 2,000 players carried out this month by Instituto Locomotiva showed that almost half (46 percent) are between 19 and 29 years old, and 34 percent belong to families with monthly incomes of up to BRL 13,000 (or USD 2,400). Only 25 percent have higher earnings, meaning low-income users are prevalent in sports betting platforms. Worse, a third of bettors are in debt and have a bad credit rating. Even so, 37 percent have three credit cards, the most widely used payment method on betting platforms.
In July, another survey of over 1,300 people commissioned by a major Brazilian retailers’ association suggested that 63 percent have had their income compromised by betting losses, and 23 percent said they refrained from buying clothes to place bets instead. Even food retail may have been impacted by Brazil’s betting frenzy, with 19 percent of respondents saying they skipped a supermarket purchase to bet. Additionally, 11 percent said they did not purchase a healthcare service or medication,…