Is it possible to compare gambling addiction to rampant consumption? According to lawyer Rafael Marchetti Marcondes, in an article for Lei em Campo, yes, with a significant advantage in favor of the iGaming sector, whose addition is much less. The American Gaming Association points out that between 1% and 2% of the population suffers from ludopathy, while studies indicate that about 5.8% of American consumers face problems with compulsive buying disorder.
Betting and retail, although operating in different contexts, share common characteristics that can generate negative side effects for the population, both in terms of mental and financial health. Society often associates betting with risks of addiction and economic damage, but often ignores that the retail sector can cause similar problems.
Thus, it is important to explore the similarities between both sectors, highlighting the harmful side effects they can cause, and reflect on the role the State should play in mitigating these impacts, without restricting individual freedoms.
Harmful effects of betting and retail
Betting and shopping can be sources of pleasure and entertainment, but, when done excessively, both can trigger compulsions with serious consequences for mental and financial well-being. In the case of betting, there is a consensus on the risks of dependency, with estimates indicating that between 1% and 2% of the world's population suffer from pathological gambling disorder. This addiction can result in problems such as severe indebtedness, breakdown of personal relationships, and even legal issues.
Similarly, retail can also generate compulsive behaviors, especially in the context of excessive consumption. Studies indicate that about 5.8% of American consumers suffer from “Compulsive Buying Disorder” (CBD), which is the compulsive buying disorder. These individuals spend uncontrollably, which often results in high debts, irresponsible use of credit cards, and consequently, financial stress.
An alarming fact indicates that 93% of people with mental health problems are more likely to overspend during emotional crises. This behavior reflects the use of shopping as a coping mechanism for feelings of anxiety or depression, leading to a spiral of unnecessary consumption that can exacerbate both financial and psychological problems.
Retail events like Black Friday and major promotions contribute to rampant consumption, where advertising appeal and credit facilities encourage people to spend beyond their means. Data indicate that American consumers spent more than US$9 billion online just during the Black Friday of 2020, a clear example of how aggressive retail marketing can lead to compulsive consumption.
The interest rates charged by credit cards in Brazil are among the highest in the world, with rates that can exceed 300% per year. This factor contributes significantly to the indebtedness of the population, as many people resort to revolving credit or installments to finance purchases driven by aggressive marketing campaigns and promotions. Many retailers offer their own cards, facilitating access to credit and fostering consumption.
The facilities offered by retail, such as interest-free installments, often mask the true costs of purchases, leading consumers to a false sense of financial control. When customers cannot pay the full amount of the invoice, they enter revolving credit, whose very high rates can turn small purchases into large debts. Still, there is no consideration to prohibit the use of credit cards in retail, as has just been done with regard to betting, a market in which the card was responsible for less than 1% of the volume of transactions carried out.
Data from the National Confederation of Commerce of Goods, Services and Tourism (CNC) – which is currently pleading in the Supreme Federal Court for the criminalization of betting – show that, in February 2023, 78.3% of Brazilian families reported being indebted, and the credit card was the main means used for these debts. These numbers indicate that consumption in retail, when poorly managed, can generate a cycle of dependence and deep indebtedness, exacerbating financial and mental health problems, even more harmful than those found in betting.
Comparison and reflection
Although betting is viewed more negatively by society, it is essential to recognize that retail, with its marketing practices, can also create an environment of dependence and indebtedness. In both cases, addiction can result in serious personal consequences, including the compromise of family relationships and the deterioration of mental health.
The key to solving both problems lies in education and information. Consumers and gamblers need to be made aware of the risks involved in their decisions, whether in buying or betting.
Government regulation should primarily focus on informing people about the dangers of excessive consumption and uncontrolled betting. In this way, the State can create public policies that protect individuals, without directly interfering in their freedoms of choice. It is up to each citizen, armed with adequate information, to make responsible and conscious choices about how to spend their money, whether on purchases or bets.
Rafael Marchetti Marcondes
Professor of Sports Law, Entertainment Law, and Tax Law. Doctor and Master in Tax Law from PUC/SP. MBA in sports management from ISDE in Barcelona/ES. MBA in sports betting management from Ohio University/USA. Chief Legal Officer at Rei do Pitaco. President of the Brazilian Fantasy Sport Association (ABFS). Legal Director of the Brazilian Institute for Responsible Gaming (IBJR). Director of Government Relations of the Brazilian Association for the Defense of Sports Integrity (ABRADIE).
