Brazilian retail sales fell 4% year-on-year in real terms for October 2026, the first full month of trading since the Government banned online betting on 25 September.
The decline extends a contraction that has now affected commerce and services for 17 consecutive months. It was the weakest October since 2023, when sales fell 4.1%.
Local news outlets said Brazilian consumers are becoming more selective and postponing purchases as household budgets come under pressure.
Brazil’s supermarket sector has been a longtime critic of the gambling sector but, according to the Brazilian Institute of Responsible Gambling, the available figures do not demonstrate that the ban caused any increase.
The figures arrive amid debate between the two sectors over whether money previously spent on regulated gambling would return to retail. Critics of the betting industry had argued that household spending was being diverted from shops and services to betting platforms and that a ban could therefore boost consumption.
The first full month of post-ban data shows no such reversal
Analysis by the Brazilian Institute of Retail and Consumer Market Executives and FIA Business School pointed to high interest rates, restricted credit, rising payment defaults and reduced purchasing power as the factors behind consumer caution.
Durable and semi-durable goods recorded the steepest fall, at 8.9%, followed by services, down 8.5%.
Non-durable goods fell 0.7%, a smaller drop that was partly cushioned by growth in specialised food retail, although food consumption was already rising before the betting restrictions.
At the recent Supreme Court betting hearing, the supermarket industry retierated their claims arguing for an online betting ban. These figures, however, do not support those claims.
According to Government research, cases of domestic violence where gambling was mentioned as a link are up 75%
