Recently, the release of the Central Bank’s technical analysis of the online betting market had a significant impact. Those who were most dissatisfied were, precisely, the retail trade and sports betting companies.
With monthly spending estimates ranging between R$18 billion and R$21 billion, the analysis generated opposite reactions between these sectors. While trade associations see the situation as a warning for sector regulation, betting sites dispute the methodology and numbers presented.
Outrage from online betting sites
The disagreement is clear. Executives in the online betting sector claim that the lack of clarity in the methodology used by the Central Bank undermines the accuracy of the data.
A director of one of the main betting platforms in the country highlights: “Even studies with higher numbers spoke of annual spending between R$60 billion and R$130 billion”.
He considers that the annualized R$240 billion is exaggerated, as part of the stake ends up returning to users’ accounts.
Fears of an increase in regulation are also expected by the betting sector. There is concern about increasing limitations on the amounts that can be transferred to betting sites.
Research reveals that Brazilians carry out more than 90% of digital betting operations via Pix, information accessible to the Central Bank. But consumers limit their credit card usage due to the high risk of chargebacks in cases of losses.
Questions about the data used
Furthermore, the Central Bank suggests that bookmakers retain 15% of the amounts bet. However, this rate is contested by a sector executive, who states that “this does not even reach 10% in Brazil”.
Another critical point raised comes from the Central Bank’s data collection methodology. In other words, the survey that included companies without registration in the National Register of Legal Entities (CNPJ) contrasts with the necessary standard of transparency.
A betting consultant asks: “How can they base an analysis on CNAEs if there is no registration of companies?”
Therefore, the lack of adequate records makes it difficult to verify the quality of the data used, which raises concerns about confidence in the analysis presented.
Impact of games on public resources
One of the most alarming aspects of the analysis was the discovery that R$3 billion spent on gaming and betting in August came from Bolsa Família resources. This represents 14% of the monthly total.
So, for retail companies, this reality confirms fears about Brazilians’ uncontrolled spending on betting. This perception becomes more evident in times of financial difficulties.
The president of the Central Bank, Roberto Campos, expressed concern last Tuesday (24) about the potential impacts on default rates.
In turn, President Lula warned of the risks of an uncontrolled increase in operations, highlighting the need for regulation, as “the country will have casinos operating in the kitchen of every home”.
Retailers and the pressure to regulate online betting
Retail entities, supported by IDV (Institute for Retail Development), have expressed concerns about the diversion of public resources.
Discussions between IDV representatives and federal deputies want to raise awareness among the population about the use of Bolsa Família resources in betting. The objective is to ensure more responsibility in the consumption of what is really needed by the family.
Additionally, retail companies fear that consumers will divert their disposable income to gambling, directly impacting their operations.
In this context, leaders of retail entities also raise the issue of mental health, arguing that increased gambling could have a harmful effect. However, betting sites dispute this narrative, arguing that studies show that betting addictions affect a small part of the population.
Intersectoral meeting
Betting site owners insinuate that mental health issues are being used as justification to restrict their operations.
Therefore, the associations that represent bets invited retail entities to an intersectoral meeting. The objective is to dialogue and propose measures to ensure the success of gaming regulation.
The invitation was also forwarded to the vice-president, Geraldo Alckmin, and the minister of Institutional Relations, Alexandre Padilha, in addition to the ministries of Treasury, Sports and Health.
