Betting and Retail, although operating in different contexts, share common characteristics that can have negative side effects for the population, both in terms of mental and financial health. Society often associates betting with risks of addiction and economic harm, but it frequently overlooks the fact that the retail sector can provoke similar problems.
Thus, it is important to explore the similarities between both sectors, highlighting the harmful side effects they can cause, and reflect on the role the state should play in mitigating these impacts without infringing on individual freedoms.
Harmful effects of betting and retail
Betting and shopping can be sources of pleasure and entertainment, but when done in excess, both can trigger compulsive behaviors with serious consequences for mental and financial well-being. In the case of betting, there is a consensus on the risks of addiction, with estimates indicating that between 1% and 2% of the global population suffers from pathological gambling disorder. This addiction can lead to problems such as severe indebtedness, the breakdown of personal relationships, and even legal issues.
Similarly, retail can also generate compulsive behaviors, especially in the context of excessive consumption. Studies indicate that about 5.8% of American consumers suffer from "Compulsive Buying Disorder" (CBD), or compulsive buying disorder. These individuals spend uncontrollably, often leading to high debt, irresponsible use of credit cards, and consequently, financial stress.
An alarming statistic shows that 93% of people with mental health problems are more likely to overspend during emotional crises. This behavior reflects the use of shopping as a coping mechanism for feelings of anxiety or depression, leading to a spiral of unnecessary consumption that can worsen both financial and psychological problems.
Retail events like Black Friday and large promotions contribute to rampant consumption, where advertising appeals and credit ease encourage people to spend beyond their means. Data shows that American consumers spent more than $9 billion online just during Black Friday 2020, a clear example of how aggressive retail marketing can lead to compulsive shopping.
Credit card interest rates in Brazil are among the highest in the world, with rates that can exceed 300% per year. This significantly contributes to the population's indebtedness, as many people turn to revolving credit or installment payments to finance purchases driven by aggressive marketing campaigns and promotions. Many retailers offer their own credit cards, making credit more accessible and fueling consumption.
The conveniences offered by retail, such as interest-free installment plans, often mask the true costs of purchases, giving consumers a false sense of financial control. When customers cannot pay off the total bill, they enter into revolving credit, where exorbitant rates can turn small purchases into large debts. Yet, there is no consideration of prohibiting the use of credit cards in retail, as has just been done in betting, where cards accounted for less than 1% of transaction volumes.
Data from the National Confederation of Commerce of Goods, Services, and Tourism (CNC)—which is currently petitioning the Supreme Federal Court to criminalize betting—shows that in February 2023, 78.3% of Brazilian families reported being in debt, and credit cards were the primary means used for this debt. These numbers indicate that retail consumption, when poorly managed, can create a cycle of dependency and deep indebtedness, worsening financial and mental health problems, potentially even more harmful than those found in betting.
Comparison and reflection
Although betting is viewed more negatively by society, it is essential to recognize that retail, with its marketing practices, can also create an environment of dependency and indebtedness. In both cases, addiction can result in serious personal consequences, including the compromise of family relationships and the deterioration of mental health.
The key to addressing both problems lies in education and information. Consumers and bettors need to be made aware of the risks involved in their decisions, whether in the act of buying or betting.
Government regulation should primarily focus on informing people about the dangers of excessive consumption and uncontrolled betting. In this way, the state can create public policies that protect individuals without directly interfering with their freedom of choice. It is up to each citizen, equipped with adequate information, to make responsible and informed decisions about how to spend their money, whether on purchases or bets.
Rafael Marchetti Marcondes
Professor of Sports, Entertainment, and Tax Law. Doctor and Master in Tax Law from PUC/SP. MBA in Sports Management from ISDE in Barcelona, Spain. MBA in Sports Betting Management from Ohio University, USA. Chief Legal Officer at Rei do Pitaco. President of the Brazilian Fantasy Sport Association (ABFS). Legal Director of the Brazilian Institute for Responsible Gaming (IBJR). Director of Government Relations for the Brazilian Association for Sports Integrity Defense (ABRADIE).
