10% of Brazilians Facing Financial Troubles as Market Regulation Looms

A recent survey by market research firm Hibou has revealed concerning figures about the impact of gambling in Brazil, just ahead of the country's move to regulate the industry.

The survey, which gathered insights from 2,839 respondents across various social classes, highlighted that 10% of the Brazilian population has experienced financial difficulties due to gambling, underscoring the need for regulatory oversight as the country prepares to launch its legal online betting market on January 1, 2025.

The survey found that 68% of Brazilians engage in some form of gambling.

However, the study's more troubling revelation was that 16% of respondents admitted to having suffered financial issues as a direct result of their gambling habits.

This percentage translates to approximately 10% of the overall Brazilian population.

These findings come as Brazil gears up for its first legal bets. During the initial 90-day application period, 113 operators applied for licenses.

Of those who reported financial difficulties due to gambling, 32% confessed to selling assets to cover their losses.

Additionally, 29% resorted to borrowing money from friends or family, while 25% dipped into their savings.

Alarmingly, 23% of those affected by gambling-related financial issues stated that their problems remain unresolved.

Despite these figures, only 2% of the Brazilian population self-identifies as addicted to gambling.

The survey also indicated a widespread awareness of the financial pitfalls associated with gambling.

A significant 65% of respondents reported knowing someone who had encountered financial difficulties due to gambling.

Among those who abstain from gambling, 44% cited a lack of trust in the honesty of bets and games, while 30% stated they had no money left to lose.

The study further revealed that gambling losses often outpace winnings in Brazil.

A majority of 53% of players admitted to spending more than they won across all games they played, with only 48% ever having won a bet.

Of the games where players did manage to turn a profit, lotteries accounted for 12% and raffles for 14%.

Online gambling, particularly games like the controversial "Fortune Tiger," was flagged as especially dangerous, with 69% of respondents identifying such games as the most addictive.

"Fortune Tiger" has drawn criticism for its use of influencer advertising, which led players to suffer significant losses on fraudulent sites and even resulted in arrests.

Nonetheless, this game will be available in the regulated market under Normative Ordinance No. 1,207 on online games.

Casinos and slot machines were also deemed dangerous by 64% of respondents, while 34% pointed to sports betting.

When it comes to regulation, 35% of those surveyed believe online games like "Fortune Tiger" should be federally regulated, while a notable 56% think they should be banned entirely.

In contrast, lotteries are viewed more favourably, with 67% advocating for federal regulation and only 4% suggesting a ban.

Demographic insights from the survey show that 47% of gamblers are single, and 43% are married, with women making up 50% of the gambling population compared to 49% of men.

The most active age group in gambling is the 55+ category, accounting for 27% of bettors, followed by the 25-34 (21%) and 35-44 (22%) age groups.

Financial gain was the primary motivation for gambling, selected by 66% of respondents, while 25% said they gamble for fun.

As Brazil prepares to regulate its gambling market, 73% of those surveyed believe that gambling companies should pay taxes, and 39% feel that regulation will bring greater security for bettors.

The media also plays a significant role in influencing gambling behaviours, with 42% of respondents encountering gambling ads on TV.

Football sponsorships are another powerful influence, as 71% of respondents indicated they would be more likely to bet if a brand-sponsored their favourite football team.

These findings highlight the complexities and challenges Brazil faces as it moves toward a regulated gambling market, where the balance between opportunity and risk will be critical.