Brazil Betting Ban Triggers 3,500 Job Losses, ANJL Finds

Key Points

• ANJL’s survey has already counted a whopping 3,500 job losses and 4,167 workers on collective leave since Lula’s 25 September ban, and they expect that number to more than double in the next 90 days.
• The 5,600 job cuts forecast is a projection, and it’s not clear how many betting operators actually replied to the survey.
• In a major coup for the government, a federal judge has thrown out a rival challenge from Brazino777’s operator, a move that’s leaving ANJL’s own court bid looking shaky.

Jobs Lost, Lives On Hold, How Lula’s One Signature Sent Thousands Packing

We’ve all heard stories of how one decision can change the course of a person’s life, but the betting sector in Brazil is living proof of just how devastating that can be. Since President Lula signed the ban on fixed odds betting, more than 3,500 workers have lost their jobs. That’s the tally from ANJL’s preliminary survey, which started counting up job losses from 25 September.

But it gets worse. Another 4,167 employees are on collective leave, a Brazilian labour arrangement that puts workers on the sidelines, essentially keeping their contracts on ice, but leaving their livelihoods hanging in the balance pending a decision from Brasília.

According to a report from SiGMA, the dismissals represent a whopping 23% of the workforce at the companies that replied to the survey. ANJL predicts another 5,600 cuts within the next 90 days, roughly 37% of the sector workforce, if the ban isn’t lifted.

Why These Numbers Need Closer Inspection?

Those numbers might look impressive, but they’re based on estimates rather than hard facts. One report suggests there are around 15,000 people working in the sector, which is close to a 2025 study commissioned by the industry that predicted around 10,000 direct and 5,500 indirect jobs.

But what’s really interesting is that ANJL hasn’t revealed how many companies actually took part in the survey, which is a pretty crucial piece of information when you’re talking about the livelihoods of thousands of people. And it’s not clear if that 15,000 workforce includes every single affiliate and supplier that’s part of the sector.

The government hasn’t published its own numbers, and when ANJL and the betting industry’s sister trade body IBJR went to the Supreme Court to challenge the ban, they claimed the Finance Ministry had told them it didn’t have any studies on the employment impact of the ban. There’s been no public response from the Ministry on that one.

The First Casualties, Smaller Brands Feeling The Pinch

Cash reserves are being called upon to decide who’s going to ride this out, and it’s clear that the smaller betting brands are bearing the brunt of the fallout. One survey found that around 36 of the 188 authorised brands had already started letting staff go.

H2Bet was one of the first to act, axing 170 of its 270 staff, while Rivalo reportedly had to let go of almost its entire Brazilian team. And it’s not just the betting brands that are feeling the pain; affiliates are taking a hit too. One industry insider reckons 10 of the 13 affiliates she works with have fired all their staff, leaving the three that are still holding on to test the waters in other Latin American markets.

The listed side of the industry is getting hit just as hard too; take Better Collective, for example. They slashed their 2026 growth guidance from 10% to 5% and suspended buybacks after the ban. Their shares nosedived, falling by around 24%.

Even As Workers Quit, The Refunds Go Through

According to the timeline provided by the Finance Ministry, 9 to 14 October would see the return of the remaining funds of the players. Caixa gets jurisdiction for challenging cases starting 15 October.

Over time, the amount of those payments changed. According to the SPA on 28 September, there was R$1.7 billion owed to some 23 million bettors. In his article on 7 October, O Brasilianista named the number of outstanding payments as R$1.33 billion for 26.5 million accounts. Both numbers are valid at their respective dates, so no contradiction exists between them.

The Court Decision Most Media Overlooked

Now the plan ANJL made legally has been met with an obstacle. On 7 October, the association filed a collective mandamus with the court to keep authorisations working beyond 25 October.

The filing states that the 85 licences have produced income of R$2.55 billion for the federal government, as mentioned in NEXT.io’s article, republished by CDC Gaming. ANJL claims that the five-year authorisation paid for cannot be annulled with a general decision.

However, the next day, another judge rejected a petition almost identical to the previous one. According to the story told by BNLData about the decision, the 21st Federal Civil Court rejected a petition from the operator of Brazino777 without considering its content.

The judge argued that the MP is a general law, not a specific action against a particular company. According to Article 4 of the decree, authorisations would expire 30 days after publication without any refund. The judge considered that the question could only be decided by the Supreme Court. The decision can be challenged, but it might give an idea of what awaits ANJL’s petition.

Everything Points To A Single Date

Thus, the only place where the matter can be discussed remains the Supreme Court, and timing matters now. According to NEXT.io, quoted by UOL, it is expected to make the decision only after the presidential runoff.

The runoff will be held on 25 October, the same day authorisations expire. The candidate list will feature Lula and the former president’s son, Senator Flávio Bolsonaro. No comments have been issued by Fux’s office so far.

Expert Analysis: Maybe Brazil Is Punishing The Only Operators It Could See

We understand that Brasília was fully entitled to take action because household debts do exist and gambling-related problems are very real and were not created by the industry. Our issue lies in the chronology of events.

Brazil took two years to create an entire licensed market, complete with ID verification, deposits and self-exclusion policies, only to destroy it all in one week, without any study of what the potential employment losses would be, according to ANJL and IBJR. The Finance Ministry. If the claim stands true, employees have been forgotten.

We also do not support the favourite industry argument: illegal link numbers increased drastically after the ban, yet links are not bets. As reported by Folha, circulation via WhatsApp and Telegram remained roughly stable throughout their own period of measurement. Where former clients are now is still unknown.

Our biggest fear lies in timing. Compliance and legal officers are likely to be the last people let go in case of any industry cutback.