Brazil is currently witnessing astonishing growth in the online betting market. In four years, the amount of money invested by Brazilians in this type of gambling has almost doubled, reaching BRL 68.2 billion (over US$ 12.5 billion) in 12 months, according to research recently published in the country.
This volume of funds represents 0.62% of Brazil's Gross Domestic Product (GDP), 0.95% of total consumption and 1.92% of the entire Brazilian wage bill, according to data from the National Trade Confederation (CNC, in Portuguese). Transferring all this money from regular spending to gambling sites is changing the national economy.
The consultancy Strategy& indicates that spending on gambling already represents the equivalent of 76% of the “leisure and culture” expenses of families D and E. This means that this slice of the population has stopped going to the theater or the cinema to gamble, for example.
The same consultancy company indicates that spending on online gambling is already equivalent to 5% of the poorest families' food bills. It also consumes 1.38% of the family budget of classes D and E – the poorest in the country’s classification – a relevant percentage, especially considering the futility of the expense.
It's important to highlight that 37% of gamblers say they have already taken money from other expenses to spend on so-called bets. Among bettors, 45% have also acknowledged having suffered a money loss as a result of betting. The data comes from the Locomotiva Institute.
Sales diminish
With less money in families' pockets and more money going to the bet companies, there's a lack of funds circulating in commerce. This has already been noted in a CNC survey.
The organization's study indicates that trade is not going as well as expected for this year, considering that the Brazilian economy has been growing more than expected in 2024. The sector's growth projection for this year has even been downgraded by CNC, taking into account the growth of online betting in the country.
“The Brazilian retail sector has been performing well in 2024, although below what was expected for the year. CNC has adjusted the sector's growth projection from 2.2% to 2.1%, due to this less robust performance in the first six months,” CNC said.
The same confederation said that gambling has also increased indebtedness in the country, which reinforces the losses of commerce.
“Online casinos have put 1.3 million Brazilians into default, removing BRL 1.1 billion (US$202.2 million) from national retail consumption,” it said. “Even in an economic environment of falling interest rates for consumers, the number of families who have registered overdue accounts has shown an upward trend throughout 2024.”
Strategy& confirmed that online bettors have reduced their spending on gambling and have also fallen into debt as a result of it.
CNC estimates that the loss in sales caused by betting could get worse. According to the organization, the sector's turnover could fall by up to 11.2%.
The sector's turnover could be up to BRL 117 billion (US$21.5 billion) lower in a year.
Edited by: Thalita Pires
