Brazil's betting industry warns of job losses and a growing illegal market

Brazil's betting industry has warned that the government's decision to ban fixed-odds betting could cause lasting damage to the licensed market. At the SBC Digital Brasil Day event on October 28, 38 speakers across six panels discussed the effects of the provisional measure (MP) 1.394/2026, introduced in September. The measure bans the operation, intermediation and advertising of fixed-odds betting and provides for the termination of existing licenses.

Because of legal challenges to the measure, Supreme Court (STF) Justice Luiz Fux will hold a public hearing on November 3. Plínio Lemos Jorge, president of the National Association of Lotteries and Games (ANJL), said the sector was caught unprepared by the decision. He noted that some licensed companies were considering restructuring through the courts. “We did not foresee this move,” said Lemos Jorge, adding that the market had returned to 2022, a time when there was no hope.

Lemos Jorge questioned how many of the former licensed operators could resume activity even if the ban were lifted. Participants warned that the restrictions could push users toward illegal platforms. Leonardo Baptista, from the payments sector, estimated that more than 40,000 illegal betting sites are operating. ANJL sent cease-and-desist notices to Meta, Google and TikTok over ads from unauthorized platforms. The association also urged operators to report sites that imitate licensed brands to the police and to the Secretariat of Prizes and Betting (SPA).

Waldir Marques, a former SPA official, defended the licensing system's financial and technical requirements, the declarations of beneficial owners, and the daily transaction reporting through the SIGAP system. According to participants, removing licensed operators would weaken these controls and leave consumers exposed to unsupervised platforms. Emanuel Macedo de Medeiros, a representative of SIGA, defended the regulatory framework and questioned whether a ban could achieve its goal of protecting consumers. In his view, regulation may not be a magic solution, but banning it amounts to shooting oneself in the foot.

The discussion also highlighted that the loss of betting revenue could affect sports federations, football clubs and grassroots competitions. Participants said around 15,000 direct jobs and employees of more than 180 betting brands could be affected, with employment among suppliers and service providers added to that figure. Tax lawyer Ana Helena Pamplona rejected claims that licensed companies contribute nothing to public finances, pointing to corporate income tax and sector-specific taxes and fees. Lawyer Fernanda Meirelles said companies had terminated contracts rather than suspending them, so commercial losses could continue even if the law were reversed.