The recently launched version of the federal government’s debt renegotiation program raised an extremely serious alert among regularized operators in Brazil.
The main companies in the iGaming sector assess that the harsh restrictions imposed by Desenrola 2.0, precisely in the year of the World Cup, a period of highest historical revenue in the sports segment, ended up opening the doors to the strengthening of the illegal betting market.
The concern, which has already been taken to offices in Brasília by company representatives, is that the new guideline will end up pushing consumers towards clandestine platforms that do not respond to any national rules or inspections.
How government restrictions can favor the illegal betting market
The controversy in the sector revolves around the ban established for citizens who adhere to the new economic package. In other words, these people will not be able to bet for a period of one year.
The project, aimed at people earning up to five minimum wages, offers generous discounts of 30% to 90% to reduce debts linked to credit cards, personal loans and special checks, including authorizing the use of 20% of the balance of the Service Time Guarantee Fund (FGTS).
In return, the beneficiary’s CPF will be blocked from use on gaming platforms for a period of 12 months.
President Luiz Inácio Lula da Silva was categorical in justifying the measure, stating that the State will limit the “destruction caused by the sector” and that citizens “cannot clear their name to continue losing money later”.
However, the companies warn that temporarily banned users who wish to continue playing will inevitably migrate to illegal sites.
The economic impact of this escape would be gigantic, as Brazil is currently the fifth largest market in the world, with revenues of US$4.1 billion last year, according to data from consultancy Regulus Partners.
Surveys by the Brazilian Institute of Responsible Gaming (IBJR) show that unfair competition already dominates 51% of the national sector, moving around R$40 billion annually underground.
Defense of the sector and the real villains of debt
To try to reverse the negative image in public opinion and political authorities, the digital entertainment giants began a strong communication offensive.
Operators argue with spreadsheets and data that they are not truly responsible for the current financial crisis among Brazilian families, whose general debt rate reached 49.9% last February.
According to the numbers presented by IBJR, the main cause of over-indebtedness in the country, which today drastically affects 80.4% of households, continues to be the abusive use of conventional credit cards.
The entity refutes Planalto’s official speech, reinforcing that the population’s spending on online platforms is negligible in the general balance, corresponding to a very small slice that varies from just 0.2% to 0.5% of all family consumption.
