Five major sports betting and online gaming operators in Brazil launched an “Open Letter to the Nation”, in which they refute recent criticisms about the impact of betting on consumption and the population’s debt.
The initiative aims to clarify misunderstandings and reinforce the industry’s commitment to accountability and transparency.
Response to criticism
In recent months, criticism has emerged that the increase in betting is related to debt and the drop in household consumption. A study by PwC Brasil indicated that individuals from lower social classes, especially classes D and E, would be committing around 1.38% of their income to betting.
In response, operators argue that these interpretations are mistaken and that the main betting audience is, in fact, in classes B and C. The industry argues that the most financially vulnerable people represent only a small portion of bettors and that the activity of betting is not responsible for a decrease in consumption or an increase in debt.
Commitment to betting regulation and consumer protection
In the letter, operators emphasize their commitment to a regulated and responsible environment, rejecting practices that may encourage compulsive behavior or misleading promises of easy gains.
They highlight that, although cases of betting addiction are rare, the industry takes these episodes seriously and is organizing educational campaigns to make bettors aware that betting should be seen as entertainment, not as a source of income.
Operators also emphasize that complete regulation of the sector, scheduled for January 2025, will be essential to guarantee the integrity and security of the market, with clear rules and punishments for irregular practices.
Consumption data
One of the most highlighted points in the letter is the defense that the growth in betting is not affecting the consumption of Brazilian families. Recent data from the Brazilian Institute of Geography and Statistics (IBGE) indicate that, in the second quarter of 2024, household consumption grew 1.3% compared to the first quarter of the year, and 4.9% compared to the same period in 2023 .
These numbers are used by operators to demonstrate that consumption in Brazil continues to rise, contradicting allegations 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 through the regulation of a new industry, sports betting and online gaming. In recent months, several sectors of the economy have demonstrated concerns, often hasty, about possible impacts of these entertainment services on the population.
Therefore, the operators that subscribe to this Open Letter to the Brazilian Nation come to clarify some points and express their commitment to consumer protection, transparency and combating any harmful practices.
It is necessary, firstly, to remove information that has been disclosed in a speculative manner about the market. From 2019 until now, Brazil has, unfortunately, a sector without any regulation, whose ongoing process will only be completed at the end of this year.
This regulatory gap enabled the arrival of serious companies, with a long and solid trajectory in the international market, but also adventurous betting houses with no commitment to integrity and responsibility.
However, there are no claims that the betting industry is responsible for an alleged reduction in consumption by Brazilians or an increase in the level of debt. This inference does not even find factual support.
Data released this week by the Brazilian Institute of Geography and Statistics (IBGE) show that, in the second quarter of this year alone, family consumption increased by 1.3% compared to the first quarter of the year and an impressive 4.9% compared to same period of 2023. In other words, Brazilians are not stopping consuming to bet.
One of the surveys released recently showed an average of 1.38% use of the household budget, by bettors from social strata D and E, with bets. The industry that operates seriously in the country does not recognize these social layers as its main consumer audience, which is more concentrated on profiles B and C. Therefore, people who are more financially vulnerable, even though they are present in the universe of bettors, represent a tiny portion.
The industry, however, does not close its eyes to the regrettable real cases of compulsion that have been reported, although rare. Therefore, the bookmakers that sign this Charter reaffirm that they are committed to a regulated, honest and responsible environment, being totally against any tools or advertising pieces that induce bettors to compulsive behavior or promises of easy money.
As one of the ways to demonstrate this commitment, operators are organizing awareness and education campaigns for bettors, reiterating the message that online gaming and sports betting should be considered forms of entertainment and not a source of income.
Working against regulation is the same as supporting illegal websites to remain in the country, without the slightest concern for the good rules of the regulated market. It means empowering those against whom the government fights, serious companies fight and society must fight.
Finally, the companies express the certainty that, from 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 disrespect the main focus of operations: the consumer.
Sign the letter:
- National Association of Games and Lotteries (ANJL)
- Brazilian Legal Gaming Institute (IJL)
- International Gaming Association (AIGaming)
- Brazilian Association for the Defense of Sports Integrity (Abradie)
- Association in Defense of Integrity, Rights and Duties in Gaming and Betting (Adeja)
