The work done by LCA Consultoria Econômica in collaboration with the Brazilian Institute of Responsible Gaming dismissed the assertions and estimates made by the Central Bank in its study.
Brazil.- A study conducted by LCA Consultoria Econômica in collaboration with the Brazilian Institute of Responsible Gaming (IBJR), which includes sports betting companies, maintains that the size of the betting market and its impact on the budgets of Brazilians are lower than estimated in other recently published surveys. In particular, this survey contrasts with the figures from the Central Bank, which projected transfers of at least R$ 216,000m (USD 37,834m) per year to platforms.
The new survey estimates that, if amounts returned as prizes are discounted, the annual net expenditure on virtual games would be around R$ 16,300m (USD 2,855m). The study maintains that this expenditure has not led to an increase in the overall indebtedness of Brazilians, and today represents at most 0.5 percent of the country's total family consumption.
In recent weeks, a three-page technical analysis published by the Central Bank had repercussions by pointing out the amount of millionaire bets. This material highlighted the transfers made via pix by 24 million bettors to the platforms, in amounts that ranged between R$ 18,000m and R$ 21,000m (USD 3,152m and USD 3,678m) per month between January and August. The study commissioned by the Brazilian Institute of Responsible Gaming maintains that the size of this market cannot be measured simply by counting the deposits made by bettors. The Central Bank itself acknowledged possible methodological flaws at the time of conducting its research.
«It's not that the Central Bank got the calculations wrong. They themselves estimate that betting houses retain 15 percent of the value. What they clearly do not say is that, if only 15 percent is retained, at least 85 percent returns to the bettors. This market is large, but it is not a monster,» said LCA director, Eric Brasil.
See also: Betting in Brazil: bill presented to increase tax burden
The survey funded by the IBJR also maintains that the percentage of transfers that remain on the platforms would actually be lower than estimated by the Central Bank: it would be approximately 7 percent, which would result in annual revenues of R$ 16,300m (USD 2,855m), far from the Central Bank study that placed that profit at R$ 35,000m (USD 6,130m).
