SAO PAULO — Known only as “King,” a Brazilian sports betting enthusiast, conceals his true identity even from clients at his Sao Paulo newsstand. His decision to go incognito stemmed from threats made by a loan shark, who warned that dire consequences would follow if King failed to settle his debts. This wake-up call pushed him to seek help earlier this year, as his financial situation became untenable.
“Initially, my addiction was to slot machines, but I switched to sports betting because it felt so accessible,” King recounted. “I often lost control.” His experience mirrors the lives of many Brazilians who have become ensnared in the rapid growth of the sports betting industry in recent years. According to data analytics firm Comscore, Brazil now stands as the third-largest market for sports wagering globally, trailing only the U.S. and U.K. However, unlike these nations, Brazil’s betting environment suffers from a lack of regulation, compounded by overwhelming advertising and sponsorship. The government is now, albeit somewhat late in the game, working to curb this rising trend.
At a recent Gamblers Anonymous session, held in a makeshift classroom within a church, attendees were comforted by coffee and cookies. Supportive phrases adorned the room, including a popular mantra: “Only for today I will avoid the first bet.” As the meeting unfolded, those present, all devout Christians, united in prayer before diving into discussions about their struggles.
King attributed his financial turmoil to his reliance on online sports betting, predominantly focusing on soccer. “Without betting, I miss the thrill it brought me,” he confessed before the meeting started. “I’ve managed to refrain for a few months, yet I understand that even a single small bet could drag me back into that abyss.”
The surge in sports betting among Brazilians can, in large part, be traced back to the COVID-19 pandemic. King shared that during this period, virtually every sale he made was plowed into betting. The omnipresent advertising across television, radio, and social media, combined with sponsorships of local soccer teams, ensnared him further. To clear his gambling debts, he resorted to banking loans and eventually borrowed from a loan shark. His current total debt stands at a staggering 85,000 reais (approximately $15,000), an impossible sum to manage with his monthly income of just 8,000 reais.
Extricating oneself from debt in Brazil presents significant challenges due to exorbitant interest rates. Monthly interest rates can soar close to 8% with Brazilian banks, while loan sharks often impose even higher fees. Observations at various Gamblers Anonymous meetings in October highlighted members grappling with their inability to pay off debts, thereby postponing essential payments like housing or foregoing family vacations. Disturbingly, some individuals from financially struggling families have diverted welfare funds to gambling instead of meeting basic needs. Data showed that in August alone, recipients of Brazil’s main welfare initiative, Bolsa Familia, spent an astonishing 3 billion reais (around $530 million) on sports betting—representing over 20% of the program’s total disbursement for that month.
Legalized in 2018 under former President Michel Temer’s administration, sports betting in Brazil has led to a shadowy environment filled with troubling accounts from addicts and mounting media reports of substantial loss. On October 1, the economy ministry acted to bar over 2,000 betting companies from operating due to incomplete documentation. Soccer fan President Luiz Inácio Lula da Silva indicated on October 17 that he would completely shut down the Brazilian market if the new regulations introduced in July did not yield satisfactory results. Additionally, the Brazilian Senate initiated an inquiry into betting companies on October 25, delving into issues surrounding crime and addiction.
“There are pressing concerns such as tax evasion, organized crime-related money laundering, and manipulative marketing practices,” stated Senator Soraya Thronicke, who advocated for the inquiry when speaking to press in Brasilia.
Among the many impacted is Sérgio Peixoto, a ride-sharing driver in Rio, who has seen his finances crumble due to betting-related debt amounting to 25,000 reais ($4,400), significantly overshadowing his monthly income. “It stopped feeling like a game; it became a desperate pursuit to win back lost funds, resulting in even greater losses,” lamented the 26-year-old. “Those resources could have been invested for far greater returns.”
The omnipresent pressure to gamble manifests across societal strata, with both current and former professional soccer stars like Vinicius Júnior and Ronaldo Nazário endorsing various betting brands. Almost all top-tier soccer clubs align with betting firms, showcasing logos prominently on their jerseys. Alarmingly, reports have emerged of minors creating betting accounts utilizing their parents’ information.
Brazil’s economy ministry postulated that the sports betting sector reached a whopping $21 billion in transactions last year, marking a 71% increase since the onset of the pandemic in 2020. The ministry’s newly implemented regulations mandate the introduction of facial recognition for bettors, as well as a singular, designated bank account for sports wagering transactions to bolster security against potential cyber threats. This regulatory framework aims for legal betting firms to fall within a government-sanctioned domain, bet.br, expected to launch in January, allowing only between 100 and 150 betting companies to operate lawfully in Brazil.
In light of these developments, some betting companies are proactively limiting their operations. A report from Yield Sec revealed that several firms are adjusting their business practices to enhance their chances of obtaining operational licenses from Brazilian authorities.
Magnho José Santos de Sousa, president of the Legal Gambling Institute, notes that numerous illegal wagering sites claiming licenses from jurisdictions like Malta and the U.K. have infiltrated Brazil’s market. De Sousa expressed optimism that the introduction of regulations on advertising, responsible gambling, and qualification of betting firms can reshape the current disorganized industry into a more disciplined and ethical space that protects vulnerable populations. “This entire scenario could transform significantly for the better,” he asserted.
Meanwhile, the demand for Gamblers Anonymous sessions in Sao Paulo has surged in recent years, prompting groups, originally meeting weekly since the 1990s, to add extra sessions to accommodate newcomers seeking support, primarily from sports gambling. During a meeting on the outskirts of Sao Paulo earlier this month, a new member grappling with his sports betting and card game addiction received a warm welcome.
“Welcome,” greeted a seasoned attendee, one of many who recurrently extend such supportive gestures. “Today, you are the most important person here.”