Brazil Betting Ban Has Cost 3,500 Jobs, Industry Claims
Brazil’s prohibition on online gambling has already resulted in approximately 3,500 job losses, according to preliminary industry research, with thousands more workers placed on collective leave as licensed operators suspend their businesses.
The National Association of Games and Lotteries (ANJL) estimates that approximately 23% of the workforce covered by its survey has been made redundant following the introduction of Provisional Measure 1.394/2026.
A further 4,167 employees, representing approximately 28% of the surveyed workforce, have reportedly been placed on collective leave while companies await the outcome of legal challenges against the ban.
Together, those figures suggest that more than 7,600 workers have either lost their jobs or been temporarily stood down since the government announced its decision to prohibit online betting and casino gaming in September.
The figures are based on preliminary information supplied by Brazilian gambling sites and businesses connected to the sector, rather than independently verified national employment statistics.
According to the association, the affected businesses employ approximately 15,000 people, with the disruption extending beyond gambling operators to payment providers, technology companies, marketing agencies, affiliates and customer service businesses.
The ANJL estimates that redundancies could reach approximately 5,600 within 90 days if the prohibition remains in place, potentially increasing the proportion of workers dismissed to 37%.
ANJL president Plínio Jorge said the association was gathering employment information to establish the economic consequences of the government’s decision.
The survey is intended to measure the effect on businesses that invested in Brazil’s regulated gambling market after the country introduced its new federal licensing framework in January 2025.
President Luiz Inácio Lula da Silva’s government has defended the prohibition as a measure to protect household finances and reduce gambling-related harm, arguing that online betting has diverted substantial amounts of consumer spending away from other areas of the economy.
Industry representatives have challenged that position, warning that closing licensed operators could push existing customers towards illegal offshore websites that do not comply with Brazilian player protection requirements.
The government has also begun returning outstanding gambling balances to customers, with approximately R$1.325 billion identified for repayment to millions of account holders following the closure of licensed platforms.
Meanwhile, gambling companies and industry associations are pursuing legal challenges in the Supreme Federal Court, arguing that the abrupt reversal of the regulatory framework threatens investments, employment and legal certainty.
The ANJL said its employment figures remain preliminary and could change as additional companies submit information.
