The chairman of the board of Magazine Luiza, Fred Trajano, has expressed concerns about the proliferation of online gambling among Brazilians. The fear is that consumption could be eroded, affecting sectors of the economy such as retail. Magazine Luiza SA is a Brazil-based company principally engaged in the retail sector.
“The growth is exponential. We will have a certain level of control, but the regulation is lax in several aspects; we have voiced our concerns. This could become a problem that contaminates many more sectors,” Trajano said speaking at an event organized by Santander in São Paulo.
According to Trajano, this issue has been one of the priorities of the Retail Development Institute (IDV), in which the Trajano family is involved. The IDV has already met with the Vice President and Minister of Development, Industry, Trade, and Services, Geraldo Alckmin, to discuss the matter.
Meanwhile The Brazilian Supermarket Association (ABRAS) has also announced that it will request stricter regulations from the government as they fear that the regulation of betting could lead to a decrease in retail commerce. According to a report by Valor Econômico, ABRAS announced its intention to send representatives to Brasília to discuss stricter rules for sports betting with legislators. The entity fears that iGaming could cause a decline in consumer spending in retail businesses.
“We will meet with the ABRAS board of directors and advisory council to more effectively advance discussions in Brasília so that we can truly establish limits on spending and advertising. The expansion of betting impacts society as a whole, especially poorer families. We are supporting the Constitutional Amendment Proposal (PEC) that defines stricter restrictions on betting advertising and advising sector companies to adopt rigorous policies when selecting marketing agencies and influencers, to be more responsible in this regard,” stated Márcio Milan, vice president of ABRAS.
ABRAS and the Retail Development Institute (IDV) suggest creating limitations on the use of credit cards and the release of payroll loans to pay off gambling debts. The institutions propose that these changes be implemented through the publication of ordinances.