Brazil: Industry unites with several open letters to President Lula

Brazil's betting industry fears that the "more drastic decision" President Lula da Silva announced could make the regulated sector unviable.

The response is one expected of an industry facing pressure, although the unified timing represents the fact that a political decision is imminent.

Even though reversing the laws that legalized online betting between 2018 and 2023 would require congressional approval, industry representatives say the Government could instead issue a decree or provisional measure banning gambling advertising or online casino products, currently governed by SPA ordinances that the Government could revise without going through Congress.

"The addict would come home and sell the gas canister. Betting is like that. People are selling what they don't have, going into debt," stated the President this week. 

He also said the Government has held three meetings on possible restrictions, though officials say nothing has been finalized. 

Industry associations pushed back sharply

In an open letter, women's gaming association AMIG warned that banning betting "would directly affect around 10,000 female sector workers and more than 10 million registered women bettors." 

ANJL argued that "not it would not be reasonable" for a policy meant to reduce debt to end up leaving bettors with less protection," urging instead "more oversight, more control, more protection and effective action against the illegal market." 

ANJL, meanwhile, argued the debate needed to start by asking a basic question: whether the harms cited by the government occurred on licensed platforms or illegal ones, noting that some accounts shared with Lula referenced experiences from before betting was regulated. “And there lies the paradox of a potential prohibition policy: a policy designed to protect the most vulnerable may end up depriving them of the possibility of investing in legalized, regulated environments subject to protection mechanisms, pushing that same demand into the illegal market,” stated the company.

ABC-Bet's letter put it plainly: "Measures that make the regulated market unviable don't eliminate demand. They shift it into the shadows, precisely where the consumer is left unprotected. Don't weaken regulation. Strengthen it."