Brazil Gambling in Healthy State Ahead of Regulated Market Launch

A new study, prepared by LCA Consultoria Econômica and commissioned by the Brazilian Institute of Responsible Gaming, shines new light on how gambling affects Brazilian households. According to the report, while Brazil’s sports betting sector records stable growth, its impact on family financial health remains relatively small. New government initiatives should help further reduce gambling harm, ushering in a safe and sustainable market.

Average Spending on Gambling Remains Quite Low

The study aimed to provide a clear understanding of how the betting market functions within Brazil while highlighting the need for robust regulatory safeguards to protect consumers. Data revealed that, on average, gambling represents between 0.2% and 0.5% of total household consumption. Regarding the broader economy, gambling expenditures account for only 0.1% to 0.3% of Brazil’s GDP.

Compared to other forms of entertainment, the spending on gambling pales in significance. According to this study, Brazilian families usually spend from 7.3% to 15.7% of their family income on entertainment in general, underscoring that gambling represents only a fraction of that amount. The study also didn’t discover a correlation between betting expenditure and household debt.

There is no evidence that there was a significant change in household debt due to participation in games and betting.

LCA Consultoria Econômica study

The study’s findings support Brazil’s growing focus on promoting safe and responsible gambling, even as the country moves closer to the official launch of a regulated sports betting market. However, the nation still struggles to contain black market operators that may offer risky products, leading to excessive gambling. The government has taken measures to limit access to such services, channeling users towards regulated offerings.

Brazil Has Made Efforts to Combat Problem Gambling

Amid concerns over gambling-related harm, Brazilian lawmakers are taking steps to protect vulnerable groups.  Two recent legislative proposals aim to address potential risks associated with the sector. PL 3,718/2024 will ban gambling among middle and low-income senior citizens dependent on social welfare. The bill also recommends spending limits based on a player’s declared income, with restrictions on excessive betting.

Meanwhile, PL 3,745/2024 will set a ceiling for all bettors, preventing them from spending more than 15% of their monthly income on wagers. The bill establishes a general spending limit for all bettors and does not target specific risk groups. Although the recent study shows a relatively low average expenditure on gambling, such measures are necessary to prevent vulnerable individuals from overspending.

Brazil’s regulated betting market will officially launch on 1 January 2025. All operators who hadn’t applied for a license had to cease their operations as of 1 October 2024. The gradual implementation of these regulations is part of a broader effort to create a safe and responsible gaming environment while balancing the potential economic benefits of the expanding market.