Zona de Azar Brazil – Brazil: Betting Operators Unite and Launch “Open Letter”
Brazil.- September 18, 2024 www.zonadeazar.com Five major sports betting and online gaming operators in Brazil have released an “Open Letter to the Nation,” in which they respond to recent criticisms regarding the impact of betting on consumption and debt accumulation among the population.
The initiative aims to clarify misunderstandings and reinforce the industry’s commitment to responsibility and transparency.
Response to Criticisms
In recent months, there have been criticisms that the increase in betting is linked to debt accumulation and a decline in household consumption.
A study by PwC Brazil indicated that individuals from lower social classes, particularly classes D and E, were spending around 1.38% of their income on betting.
In response, the operators argue that these interpretations are incorrect and that the main betting audience is actually in classes B and C. The industry asserts that financially vulnerable individuals represent only a small portion of bettors and that betting activities are not responsible for reducing consumption or increasing debt.
Commitment to Betting Regulation and Consumer Protection
In the letter, the operators emphasize their commitment to a regulated and responsible environment, rejecting practices that might encourage compulsive behavior or misleading promises of easy winnings.
They highlight that, although cases of betting addiction are rare, the industry takes these episodes seriously and is organizing educational campaigns to raise awareness among bettors that gambling should be seen as entertainment, not as a source of income.
The operators also stress that the full regulation of the sector, scheduled for January 2025, will be essential to ensure the integrity and security of the market, with clear rules and penalties for irregular practices.
Consumption Data
One of the key points in the letter is the defense that the growth of betting is not affecting household consumption in Brazil. Recent data from the Brazilian Institute of Geography and Statistics (IBGE) indicates that in the second quarter of 2024, household consumption grew by 1.3% compared to the first quarter of the year, and by 4.9% compared to the same period in 2023.
These figures are used by the operators to demonstrate that consumption in Brazil is still rising, contradicting claims that betting is reducing the population’s purchasing power.
Open Letter from Sports Betting and Online Gaming Operators to the Brazilian Nation
“Since the beginning of 2023, Brazil has been experiencing a historic moment with the regulation of a new industry—sports betting and online gaming. In recent months, various sectors of the economy have expressed concerns, often prematurely, about the potential impacts of these entertainment services on the population.
Therefore, the operators who sign this Open Letter to the Brazilian Nation wish to clarify some points and express their commitment to consumer protection, transparency, and the fight against harmful practices.
First, it is necessary to dispel information that has been disseminated speculatively about the market. From 2019 until now, Brazil has unfortunately had a sector without any regulation, with the regulatory process only concluding at the end of this year.
This regulatory gap has allowed serious companies with long and solid histories in the international market to enter the country, but also less reputable betting houses with no commitment to integrity and responsibility.
However, any claims that the betting industry is responsible for a supposed reduction in Brazilian consumption or an increase in debt levels are unfounded and factually unsupported.
The data released this week by the Brazilian Institute of Geography and Statistics (IBGE) show that, in the second quarter of this year alone, household consumption grew by 1.3% compared to the first quarter and an impressive 4.9% compared to the same period in 2023. In other words, Brazilians are not stopping consumption to bet.
One of the recently published studies indicated that bettors from social strata D and E spend an average of 1.38% of their household budgets on betting. The industry, which operates responsibly in the country, does not recognize these social classes as its main consumer base, which is more concentrated in profiles B and C. Therefore, financially vulnerable individuals, while present in the betting universe, represent only a tiny fraction.
However, the industry does not turn a blind eye to the unfortunate real cases of addiction, even though they are rare. Therefore, the betting houses that sign this letter reaffirm their commitment to a regulated, honest, and responsible environment, and strongly oppose any tools or advertising that encourage compulsive behavior or promises of easy money.
As one way of demonstrating this commitment, the operators are organizing awareness and education campaigns for bettors, reiterating the message that online gaming and sports betting should be seen as forms of entertainment and not a source of income.
Working against regulation is the same as supporting the continued presence of illegal sites in the country, which have no concern for the good rules of the regulated market. It means empowering those against whom the government, serious companies, and society as a whole are fighting.
Finally, the companies express their certainty that, as of January 1, 2025, with the entry into force of the regulated market, Brazil will have a safe environment for betting, with clear rules and punitive measures for those who violate the primary focus of the operations: the consumer.”
Signed by:
- National Association of Games and Lotteries (ANJL)
- Brazilian Institute of Legal Gambling (IJL)
- International Gaming Association (AIGaming)
- Brazilian Association for the Defense of Sports Integrity (Abradie)
- Association for the Defense of Integrity, Rights, and Duties in Games and Betting (Adeja)
Edited by: @_fonta
www.zonadeazar.com
