Online Betting Ban Triggers Massive Layoffs in Brazil's Gambling Sector

Less than fifteen days after the federal government issued a Provisional Measure prohibiting legalized online betting platforms in Brazil, the industry is already facing significant job losses. According to a survey by the National Association of Games and Lotteries (ANJL), at least 3,500 direct employees have been laid off, representing 23% of the sector's workforce. In addition, 4,167 workers have been placed on collective vacation as operators await legislative or judicial decisions regarding the Provisional Measure (MP).

ANJL President Plínio Lemos Jorge warned of a potentially broader impact, estimating that if the MP remains in effect, up to 60,000 direct and indirect jobs could be at risk. Projections indicate that layoffs could reach 5,600 within 90 days, translating to 37% of the sector’s direct workforce. Smaller domestic operators have been hit hardest, with companies like H2Bet dismissing 170 of its 270 employees and Rivalo Brasil laying off almost its entire Brazilian staff.

The prohibition's ripple effects extend beyond employment, affecting related economic sectors such as commercial real estate. RealtyCorp reported an increase in returned office spaces, predominantly in São Paulo. Reginaldo Diniz, CEO of End to End Sports Marketing Agency, highlighted the legal uncertainty created by the MP, stating it "threatens jobs, affects families, and causes losses for suppliers and partners throughout the chain."

Furthermore, the end of the voluntary fund withdrawal period on betting platforms left R$ 1.32 billion unclaimed in the accounts of 26.5 million bettors, with banks scheduled to process refunds between October 9 and 14, 2026.