Brazil Betting Ban Wipes Out 74% of Licensed Site Traffic

Brazil's licensed betting market lost most of its audience within a week of President Luiz Inácio Lula da Silva's ban. Data firm Blask found that the reach of licensed sites had fallen to 74% below normal by October 1. The National Association of Games and Lotteries (ANJL), an industry trade body, says a preliminary survey shows more than 3,500 workers have since lost their jobs.

Provisional Measure 1,394, published September 25, bans fixed-odds betting and online casino games nationwide. Licensed operators were ordered to take their sites offline by October 6. Industry groups are now waiting for Brazil's Supreme Federal Court (STF) to rule on whether the ban stands.

Licensed Site Traffic Collapses as Offshore Demand Holds Steady

Blask tracked the same group of Brazilian internet users before and after the measure took effect. Deposits on licensed sites stopped on September 25, the day the measure was published. The next day, page activity per visitor on licensed sites fell 41%. Blask said players were logging in to withdraw funds, not to bet.

By October 1, licensed sites' reach was 74% below normal, and searches for licensed brands were down 83%. Search volume for offshore brands, meanwhile, held within 1% of its pre-measure level. Blask also found that 57% of bettors had already visited an unlicensed site before the ban.

Its report warned that the ban shut the legal channel but left demand intact.

Betting Ban Has Cost 3,500+ Jobs, With More Expected

ANJL released preliminary survey results on October 7. The results show that more than 3,500 workers have been dismissed since September 25. That equals about 23% of the workforce at the companies that responded.

Another 4,167 employees are on collective leave. ANJL warned that some of them could also be dismissed in the coming weeks. It projects total layoffs could reach 5,600 within 90 days.

The count covers only participating companies, not the wider supply chain. ANJL President Plínio Lemos Jorge said the group needs real numbers to measure the impact. He pointed to the human cost of the measure: "Each of these families is seeing one of its members lose their job because of an unconstitutional decision."

Supreme Court Ruling Could Slip Past Runoff as Losses Mount

On September 28, ANJL and the Brazilian Institute of Responsible Gaming asked the STF to suspend the measure. Justice Luiz Fux is overseeing both cases. Both groups argue that the ban fails to meet the constitutional urgency requirement for provisional measures.

The Attorney General's Office (AGU) has urged Fux to keep the ban in place. It also asked that the prosecutor general weigh in before any ruling. That step could push a decision past the second round of Brazil's presidential election. Congress has 120 days to approve or reject the measure.

Meanwhile, the financial toll keeps growing. Blask estimated that licensed operators lost about R$1.2 billion (US$239 million) in gross gaming revenue in the first 10 days after the measure. Brazil's struggle to keep players away from offshore sites mirrors fights elsewhere, including Michigan's order against 33 unlicensed operators.