Isaac Sidney, president of the Brazilian Federation of Banks, explained that the spending of gamblers can lead to an increase in credit risk variables and default cases.
Brazil.- The banking sector is concerned about the impact of betting on family indebtedness, said Isaac Sidney, president of the Brazilian Federation of Banks (Febraban). According to him, the spending of gamblers compromises income, increasing the variables in credit risk and default analyses.
"We are really worried and even alarmed by the data published by the Central Bank, which informed us that betting houses receive a cash flow of between R$ 200,000m (USD 34,000m) and R$ 250,000m (USD 43,000m) per year, and around 15 percent simply does not return to the bettors," explained Sidney.
According to the president, this retained amount indicates an estimated amount of R$ 35,000m (USD 6,000m) withdrawn from the family budget.
"The retained amounts, for example, if they somehow do not return to the bettor, could become defaults, something around 27 percent more within the banking sector, a risk we cannot ignore," he stated.
See also: A new study in Brazil determined that online betting did not increase indebtedness
The Brazilian Institute of Responsible Gaming (IJBR), an entity that represents 75 percent of the Brazilian online betting market, claims it supports more in-depth and technically based analyses on the impacts of betting on the economy. "The Institute emphasizes that the legislation is clear regarding the obligation that 85 percent of the betting amount goes to the winners. The regulation already reinforces this protection to the bettors and makes clear, as also defended by the IBJR, the need to combat illegal companies operating outside these rules," it states in a note.
