The betting market in Brazil has seen notable growth, especially after the approval of Law No. 13,756/18 and the new legislation of 2023. To understand this phenomenon, the Brazilian Institute of Responsible Gaming (IBJR) and LCA Consultoria Econômica conducted a study unprecedented about the impact of betting on the daily lives of Brazilians.
Study by IBJR and LCA Consultoria
The study reveals that annual spending on betting varies from 0.1% to 0.3% of GDP. In family consumption, these expenses correspond to between 0.2% and 0.5% of the total.
If families used all their gambling spending to pay off debts, the debt reduction would be less than 0.5 percentage points. Furthermore, between 2022 and 2024, no significant impacts of betting on household debt were observed.
Eric Brasil, director of LCA Consultoria Econômica, highlights that “data-based analysis of the sports betting market is vital for decision-making by companies and also by the federal government.”
According to him, the study seeks to clarify information and analyze the dynamics of the sector in an impartial manner. Understanding how betting affects the market and families is essential, as well as evaluating its impact on the economy.
The Importance of Hard Data
André Gelfi, CEO of IBJR, emphasizes the need for concrete data to protect the player. “Only through concrete and real data will bookmakers be able to develop internal policies and player protection tools,” he stated.
The IBJR aims to provide clarity to the sector, helping to establish information that guides the functioning of the market. To better understand this scenario, you need to familiarize yourself with some key terms in the sector.
Turnover refers to the total money wagered, while Return-to-Player (RTP) indicates the percentage returned to players in the form of prizes.
Gross Gaming Revenue (GGR), in turn, represents the gross revenue of bookmakers, which is the total amount wagered minus the total paid in prizes. It is vital to avoid confusion between these concepts so as not to overestimate the market.
Odds structure the betting market, because if all bettors always won or lost, this dynamic would have no reason to exist.
The turnover volume is shared between bettors and operators, with the RTP rate influencing this process. In regulated markets, this rate usually exceeds 80%. In Brazil, IBJR operators have presented an RTP of around 93%.
An overview of Brazilians’ spending on betting
Estimates involving the GGR, which is around 7% of the total, indicate that the annual net spending on betting in Brazil could reach R$16.3 billion. This value differs from other surveys carried out recently, reflecting a more realistic panorama of the sector.
From the study, it is clear that the growth trajectory of the betting market is similar to that of other expanding sectors.
In other words, betting emerges as a legitimate way of allocating the budget for leisure, similar to streaming services, cinema and events. This diversity in consumption highlights an evolution in Brazilian preferences in relation to entertainment.
What is the role of the IBJR?
The Brazilian Institute of Responsible Gaming (IBJR) emerged from the union of large groups in the sector, including Bet365, Flutter and Entain. Therefore, its objective is to promote the debate on the regulation of betting in Brazil.
The IBJR seeks to provide information that advocates for the creation of clear rules, allowing companies to operate legally and protect players’ interests.
In addition to bookmakers, IBJR has the support of payment companies, media groups and sports marketing agencies. Founded in 2023, the institute has established a commitment to responsible gaming, sporting integrity and player protection.
Thus, the founding houses are responsible for approximately 75% of the offshore online betting and gaming market. The institute recently published a document that lists 15 essential principles to ensure consumer protection in sports betting.