Operators’ open letter to Brazilian nation

Shirley Pulis Xerxen September 17, 2024

SiGMA news

Operators’ open letter to Brazilian nation

ANJL, the association representing operators in Brazil, has released an “Open Letter to the Brazilian Nation” in response to growing concerns expressed by sectors including the financial market and retail regarding the country’s emerging sports betting and online gaming industry. Dated September 13, the letter was made public on the 16th and seeks to clarify misconceptions and defend the industry’s role in Brazil’s economy.

In the letter, operators acknowledge Brazil’s ongoing regulatory efforts, which began in 2023 and are set to conclude by the end of 2024. They emphasise that the lack of regulation since 2019 has allowed both legitimate international companies and less responsible entities to enter the market. However, they stress that the industry has been unfairly blamed for broader economic concerns, particularly in relation to household consumption and personal debt.

Numbers indicate positive outlook

Citing data from the Brazilian Institute of Geography and Statistics (IBGE), the letter highlights that household consumption increased by 1.3% in the second quarter of 2024, compared to the previous quarter, and by an impressive 4.9% compared to the same period in 2023. This evidence, the open letter claims, dispels notions that betting is diverting funds away from essential consumption.

In recent news, Flutter Entertainment’s acquisition of Brazil’s NSX Group for $350 million marked a strategic expansion into a rapidly growing market. By securing a majority stake in Brazil’s fourth-largest online gaming operator, Flutter is positioning itself ahead of regulatory changes in the country. This acquisition follows CEO Peter Jackson’s aggressive global expansion strategy, seen in key markets like the U.S., where Flutter’s FanDuel brand dominates.

Addressing players at risk

The operators also address concerns that financially vulnerable Brazilians, particularly from lower social strata are disproportionately affected by gambling. They acknowledge that while some individuals from these groups do engage in betting, their representation is minimal.

Recognising the issue of compulsive gambling, which has been highlighted in the media, the industry reaffirms its commitment to fostering a responsible gaming environment. The open letter notes that operators are actively opposing advertising that promotes compulsive behaviour and are planning awareness and educational campaigns to ensure that online gaming and sports betting are viewed as entertainment, not income-generating activities. The letter states: “As one of the ways to demonstrate this commitment, operators are organising awareness and education campaigns for players, reiterating the message that online gaming and sports betting should be considered forms of entertainment and not a source of income.“

Commitment to regulation, safe gambling

The ANJL open letter clearly aims to shift the public narrative and reinforce operators’ commitment to responsible practices as the nation moves towards a regulated betting landscape. The letter concludes with an optimistic vision of what 2025 will bring – a safe and transparent environment for sports betting in Brazil, with clear rules and enforcement measures designed to protect consumers.

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