Over 3,500 workers have already been laid off by the betting industry in Brazil since the issuance of Provisional Measure 1.394, which banned licensed sportsbooks from operating in the country.
The figure, representing 23% of the entire workforce, stems from a partial survey by the National Association of Games and Lotteries (ANJL), based on data provided by betting operators and released last Wednesday.
In addition to the layoffs already carried out, 4,167 employees are on collective furlough. ANJL projects that layoffs will reach 5,600 workers within 90 days. This amounts to 37% of the sector’s workers.
The survey covers layoffs and contract terminations that have occurred since 25 September, the date the measure was announced by Brazil’s President Luiz Inácio Lula da Silva.
“We need real numbers to gauge the measure’s effects on the workers and companies that rely on this activity,” said ANJL president Plínio Lemos Jorge in a statement sent to betting operators.
Unconstitutional decision yet to be judged
The data reveals a devastating impact on thousands of Brazilian families, who are losing their income, or part of it, due to a sudden decision that many have deemed to be an electioneering strategy.
“It is no coincidence that we use the term ‘betting industry,’ because that is exactly what it is,” Lemos Jorge explained. “The sector encompasses various companies, including payment processors, marketing, compliance, agencies, affiliates and specialised media outlets.
“Each of these families is watching a member lose their job due to an unconstitutional decision that has yet to be judged by the Supreme Federal Court.”
In response to Lula’s provisional measure, the ANJL and the Brazilian Institute of Responsible Gaming filed a lawsuit with the Supreme Federal Court calling for the ban to be overturned.
The wait for a ruling on the preliminary injunction requesting the PM’s suspension – specifically in the lawsuits under the rapporteurship of Justice Luiz Fux – has the potential to convert a portion of the 4,167 furloughed employees into permanent layoffs.
“This is, therefore, another factor that reinforces the urgency of reviewing the request to suspend the PM,” stated the ANJL president.