A survey by market research specialist Hibou has revealed 10% of the population in Brazil has endured financial problems from gambling ahead of regulation coming into force.
The survey, which included 2,839 respondents in Brazil from all social classes, studied the prevalence of gambling in the population.
The study found 68% of Brazilians gamble, with around 16% of respondents stating they had suffered from financial issues due to their gambling.
Is pre-regulation gambling causing social issues?
That equates to around 10% of the Brazilian population. While this may cause concern it is important to note it covers a period before the legal online market launches. The first legal bets will be placed on 1 January 2025, with 113 operators applying for a licence during the initial 90-day window of preference.
Of those who had endured financial problems from gambling, 32% stated they had sold assets to make up for their losses. Additionally, 29% borrowed from friends or family, while 25% used their savings.
Meanwhile, 23% stated their problems were still unresolved. Despite those figures, just 2% of the Brazilian population consider themselves addicted to gambling.
Among all respondents, 65% said they knew of someone who had suffered financial issues stemming from gambling.
Of those who stated they didn’t gamble, a lack of trust in the honesty of bets and games was chosen as a reason by 44%. Having no money left to lose was selected by 30% as a reason not to gamble.
Gambling losses outpacing wins in Brazil
The study revealed 53% of players had spent more than they won on all the games they played, while less than half (48%) said they had ever won a bet.
Of the games in which players turned a profit, lotteries accounted for 12% while raffles were responsible for 14%.
Gambling games were believed to be addictive by 88% of respondents who didn’t gamble, with just 3% stating they didn’t feel betting could be addictive while 9% were unsure.
Is Fortune Tiger firestorm turning players against igaming?
Online games, which include the controversial Fortune Tiger, were chosen by 69% of those surveyed as among the games that are most dangerous for gambling addiction.
Fortune Tiger, an Asian-themed slot which has come under fire for using influencer advertising that pushed players to lose heavily on fraudulent sites, leading to arrests. However the game will be available in the regulated market, per Normative Ordinance No 1,207 on online games.
Casinos and slots were picked by 64% as being dangerous for addiction, while sports bets were picked by 34%.
When asked which games should be regulated, 35% believed online games such as Fortune Tiger should be federally regulated, while 56% believed they should be banned.
That’s in comparison to lotteries, with 67% of those surveyed believing they should be federally regulated while 4% said they should be banned.
Demographics and motivations of gambling
Of those who gamble, 47% are single while 43% are married. The number of females gambling also outpaces the male population, with women accounting for 50% of gamblers while 49% are men.
The 55+ age group was found to be the most prevalent age group for betting, with 27% of bettors coming from that age category compared to the 25-34 (21%) and 35-44 (22%) groups.
In terms of motivations, betting for financial gain was chosen by 66% of respondents, while gambling for fun was selected by 25%.
With Brazil getting ready to launch its legal market, 73% of those surveyed believe gambling companies should pay taxes, while 39% said regulation will bring security for those who bet.
Media a big influencer on gambling in Brazil
Asked where they observe adverts for betting, 42% of respondents said they view advertising for gambling on TV.
The findings come after Grupo Globo, the largest media group in LatAm, announced it was entering into a joint venture with MGM to launch BetMGM in the licensed Brazil betting market.
The deal will leverage Grupo Globo’s consumer network of around 70 million daily users across its TV, digital, radio and print media networks.
Another big influence on those in Brazil to gamble comes from football, with 71% of respondents saying the sponsorship of a brand on their football teams would make them more inclined to bet.
A number of betting sponsorships on clubs have been announced since Bill 3,626/2023 was approved by Brazil’s chamber of deputies on 21 December. These include top-flight football team Flamengo announcing it was launching its own betting brand through its shirt sponsor Pixbet.
