The entities state that, since last year, the country has been going through a “historic moment” with the regulation of the sector, but that economic segments have shown, due to lack of knowledge of the practices adopted by the industry, “concerns, often hasty” about the impacts of these entertainment services.
The text does not directly refer to any player in the market, but is a response to several of them. PwC Brazil, for example, released an estimate last week that people with lower incomes dedicate 1.38% of their family budget to gambling — a figure that is refuted in the “open letter.”
In addition, it mentions that economists from Itaú bank calculated that Brazilians lost R$23.9 billion (US$ 4.3bn) in gambling over a one-year period. Another reference is to a Santander report, which warns of a possible relationship between the rise of 'Bets' and the drop in retail sales.
In mid-August, the president of the CVM, João Pedro Nascimento, publicly stated that the issue is alarming and has the potential to “empty the refrigerators of Brazilians.”
In the open letter to the nation, the entities reinforce “their commitment to consumer protection, transparency and combating any harmful practices.”
They also clarify that, in fact, the majority of public gambling consumers would not be from the lowest income brackets (as mentioned in the PwC Brazil study). The target audience would be the middle class (B and C): “People who are more financially vulnerable, even though they are present in the universe of gamblers, represent a tiny portion”, the message states.
The entities also demonstrate data from IBGE, released a few days ago, which indicate an increase in family consumption (1.3% more now than in the first quarter of the year, and 4.9% higher than in the same period in 2023). The letter states: “Brazilians are not giving up consumption to gamble.”
In the letter, the associations point out what would be “serious companies, with a long and solid track record in the international market”, including those that signed the letter, and “adventurous betting houses with no commitment to integrity (...)”.
There is also an inflection about people addicted to gambling — cases that would be considered “rare”. Finally, the operators declare:
“However, the industry does not turn a blind eye to the regrettable real cases of compulsion, even if rare, that have been reported. (...) They come to reaffirm that they are committed to a regulated, honest and responsible environment, and are completely dedicated to any tools or advertising materials that induce gamblers to compulsive behavior or promises of easy money.”
"Open Letter from Sports Betting and Online Gaming Operators to the Brazilian Nation
Since the beginning of 2023, Brazil has been experiencing a historic moment through the regulation of a new industry, that of sports betting and online gaming. In recent months, several sectors of the economy have expressed concerns, often hasty, about the possible impacts of these entertainment services on the population. Therefore, the operators that subscribe to this Open Letter to the Brazilian Nation come to clarify some points and express their commitment to consumer protection, transparency and the fight against any harmful practices.
It is necessary, first of all, to dispel information that has been released in a speculative manner about the market. From 2019 until now, Brazil has, unfortunately, had a sector without any regulation, whose ongoing process will only be concluded at the end of this year.
This regulatory gap has made it possible for serious companies, with a long and solid track record in the international market, but also for adventurous betting houses with no commitment to integrity and responsibility.
However, there is no basis for any claims that the betting industry is responsible for a supposed reduction in consumption by Brazilians or an increase in the level of debt. Such an inference, in fact, has no factual basis. Data released this week by the Brazilian Institute of Geography and Statistics (IBGE) show that, in the second quarter of this year alone, household consumption increased by 1.3% compared to the first quarter of the year and an impressive 4.9% compared to the same period in 2023. In other words, Brazilians are not giving up consumption to gamble.
A recently released survey indicated an average of 1.38% of the household budget spent on bets by gamblers from social classes D and E. The industry that operates seriously in the country does not recognize these social classes as its main consumer audience, which is more concentrated in profiles B and C. Therefore, the most financially vulnerable people, even though they are present in the universe of gamblers, represent a tiny portion.
The industry, however, does not turn a blind eye to the unfortunate real cases of compulsion that have been reported, even if they are rare. Therefore, the bookmakers that signed this Letter reaffirm that they are committed to a regulated, honest and responsible environment, and are completely against any tools or advertising materials that induce bettors to engage in compulsive behavior or to promises of easy money.
As one way of demonstrating this commitment, the operators are organizing awareness and education campaigns for bettors, reiterating the message that online gaming and sports betting should be considered forms of entertainment and not a source of income.
Working against regulation is the same as supporting the permanence of illegal websites in the country, without the slightest concern for the good rules of the regulated market. It means empowering those who the government, serious companies and society should fight against.
Finally, the companies are certain that, as of January 1, 2025, with the entry into force of the regulated market, Brazil will have a safe environment for betting, with clear rules and punitive measures for those who disrespect the main focus of the operations: the consumer.
September 13, 2024"
National Association of Games and Lotteries (ANJL) - organizer
Brazilian Institute of Legal Gaming (IJL);
International Gaming Association (aigaming);
Brazilian Association for the Defense of Sports Integrity (Abradie);
and Association for the Defense of Integrity, Rights and Duties in Games and Betting (Adeja).
Source: GMB
