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Brazil retail sector targets betting restrictions

Vice-President Geraldo Alckmin said proposals from major wholesale retailers on betting restrictions will be forwarded to President Lula.

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Sao Paulo
Key Points
ABAAS linked betting growth to rising household debt and weaker low-income consumption
Sector proposed stricter advertising controls and faster blocking of illegal betting platforms
Alckmin said the suggestions would be taken to President Lula

Brazil’s wholesale retail sector has once again stepped up pressure on the Federal Government over the expansion of betting activity, arguing that online gambling is increasingly affecting household consumption and indebtedness.

During a meeting with Brazil’s Vice-President Geraldo Alckmin, representatives from the Brazilian Association of Wholesale and Self-Service Retailers (ABAAS) presented a package of proposals aimed at tightening restrictions on betting operators.

According to ABAAS, betting platforms are contributing to the reduction of disposable income among lower-income consumers, impacting spending on essential goods. The group cited data suggesting that 76% of Brazilian households shop at wholesale or retail chains, making the sector particularly exposed to shifts in consumer spending patterns.

In a presentation titled “The wheel of the economy is slowing down”, Assaí CEO Belmiro Gomes argued that betting is diverting income previously allocated to basic consumption.

Assaí is one of Brazil's largest "Cash & Carry" wholesale retailers.

The association proposed a series of measures targeting both legal and illegal operators. Suggestions included accelerating the blocking of illegal betting websites through Brazil’s telecommunications regulator Anatel, creating a blacklist of instant-payment Pix accounts connected to unauthorized operators and automatically shutting them down.

ABAAS also defended stronger accountability for digital platforms carrying betting advertisements and proposed banning cross-sponsorship arrangements involving sportsbooks and online casino products.

The group drew comparisons with Brazil’s anti-smoking policies, arguing that the country successfully reduced tobacco consumption over several decades through a combination of health campaigns, advertising restrictions and taxation rather than outright prohibition.

Among the additional measures proposed were mandatory warning messages inside betting platforms, increased taxation, public health campaigns and treatment for gambling addiction through Brazil’s public healthcare system.

Good to know

Brazil’s Ministry of Health recently launched a free nationwide training program focused on the treatment and prevention of gambling addiction

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