Betting ban triggers layoffs across Brazil’s gaming sector

The impact of Brazil's betting ban is reaching the sector's workforce, with at least 36 of the 188 previously authorized brands carrying out layoffs.

According to a survey by the Association of Women in the Gaming Industry (AMIG), this comes as politicians debate the measure in Congress.

The cuts are concentrated among small and medium-sized companies, with suppliers excluded from the figures.

H2Bet has dismissed 170 of its 270 employees, according to operations director Diego Breda de Carvalho. Rivalo has reportedly dismissed almost all of its roughly 100-person Brazilian team, while Rei do Pitaco, which received early investment from Grupo Globo, reportedly dismissed more than half of its 100 employees and placed 30 on collective leave.

Suppliers are also affected. Alob Sports, a Betano supplier, has dismissed several employees. 

"It is a cascading effect," said Co-Founder Bernardo Pontes, noting that companies providing event structures, security, promoters and promotional materials were also hit. “The market may recover, but it will recover differently. We need to understand what the rules of the game will be to know if we can resume operations.”

Ana Gaming has also already made layoffs, although it does not detail quantities. 

"Closing operations by legal determination compromises the conditions that support jobs and contracts. Even a possible reversal of the measure does not eliminate the damage already caused", said the company in a note.

The sector employs around 10,000 people directly and 5,000 indirectly, according to an LCA consultancy study commissioned by betting companies. Some executives believe companies without sufficient cash reserves could shut down permanently.

The ANJL said it has called on all companies in the sector to fill out a form about layoffs resulting from the ban. 

"We still can't say how many people have been laid off or how big this will be, but this wave began last week," it said.