The National Association of Games and Lotteries (ANJL), a Brazil gambling trade body, has dropped its lawsuit against the Brazilian Association of Supermarkets (ABRAS) over a social media video criticising the betting sector.
In June, the ANJL accused ABRAS of misleading the public in a video published on the supermarket association’s social media, titled “History of Bets”.
In the video, ABRAS claims regulated betting is linked to worsening food insecurity in Brazil, stating every Brazilian real spent on betting leads to “one less dish on the table”.
The ANJL hit back with a lawsuit calling on ABRAS to explain where the information included in the video originated. The body said it went beyond “criticism of specific agents, and affected the sector as a whole”.
However, the ANJL lawsuit in Brazil has now been dropped, after a meeting with retail entities last Thursday in São Paulo, where the parties discussed how to foster an understanding of the regulated betting sector in Brazil.
“We demonstrated to ABRAS and the Institute for Retail Development (IDV), which also attended the meeting, that everyone’s focus should be on illegal gambling,” ANJL President Plínio Lemos Jorge said.
“Operators that are not authorised to operate in Brazil have no concern for the integrity of bets or the protection of bettors.”
Dialogue between ANJL and retail sector to continue
The meeting marked the opening of a dialogue between the betting and retail sectors, with Brazilian Institute of Responsible Gaming (IBJR) Executive Director Fernando Vieira also present. The IBJR is a second trade body covering the online gambling sector.
According to the ANJL, the goal for future discussions is to jointly advance issues of shared interest, particularly surrounding the financial health of Brazilian consumers, utilising what was learned at last week’s meeting.
“We have taken this understanding and will deepen those discussions in future meetings,” Lemos Jorge added.
Notably, however, the two sides couldn’t reach an agreement on the controversial topic of betting advertising in Brazil.
In May, the Senate approved a number of new ad restrictions, including bans on marketing during live sporting events and the use of celebrities, as well as watersheds.
The retail sector is keen for betting advertising to be restricted, while the gambling industry warns further restrictions will only boost the black market.
In the meeting, IBJR President Vieira highlighted that around 80% of bettors cannot currently distinguish a licensed operator from an illegal one, with advertising offering a solution to this problem.
ANJL and IBJR join forces
Last week, the ANJL officially formalised its cooperation agreement with the IBJR amid the threat of new ad restrictions and an increase in the tax rate.
This move, carried out in coordination with the Secretariat of Prizes and Bets, unites the country’s two largest gambling trade associations.
Both organisations are aligned in their primary objective of protecting the sustainability of Brazil’s regulated betting market.
Vieira said: “The consolidation of this partnership is a concrete response to the challenges that threaten the regulated environment in Brazil.”
The ANJL has taken a step back from court proceedings to pursue common ground with Brazil’s retail industry.