One Month of Brazil's Betting Ban: What Has the Industry Lost?

One month has passed since Brazil's betting ban took effect. During this period, Lula da Silva was re-elected president on October 25 with 51.79 percent of the valid votes. On the same day, the licenses of 85 operators expired. The future of the sector now depends on decisions by the Federal Supreme Court (STF) and Congress.

Some figures in the industry have begun to acknowledge that they have lost the public debate over betting. Luiz Felipe Maia, founding partner of the law firm MYLaw Advogados, says he does not expect the government to back down in the short term. In his view, the real question is not whether the ban will be reversed, but how the demand moving toward unlicensed sites can be managed without harming consumers.

Thomas Carvalhaes, chairman of TC Advisors, spoke in much harsher terms. Arguing that the government has repeatedly struck a sector it regulated and legalized itself, Carvalhaes claimed that a five-year contract was unilaterally broken. Even so, he sees a positive mood in the structure of the new Congress and says the sector should work more closely with the government.

The National Association of Games and Lotteries (ANJL) congratulated Lula on his re-election. In its statement, the association said it hopes dialogue will be restored and that the democratic rule of law will prevail.