For André Gelfi, director, board member and co-founder of IBJR, a rigorous crackdown on the illegal betting market is essential to the effectiveness of the Desenrola Brasil programme. According to Gelfi, Brazilians are not going to stop gambling.
He points out that blocking licensed betting sites is a mistake. This could drive users toward underground platforms, which already generate BRL40 billion ($8 billion).
“This is exacerbated by the approaching World Cup, a time when sports betting volumes naturally increase,” says Gelfi. Another concern is the potential loss of R$10.8 billion ($2.16 billion) in tax revenue for the country if betting activity shifts to the underground market.
Betting costs tiny compared to streaming and mobile phones
He points out a major contradiction on the part of the Brazilian National Trade Confederation (CNC) when it claims that betting companies withdrew nearly R$144 billion from the market. “A study by LCA Consultoria Econômica shows that spending on gambling is negligible compared to other expenses, such as streaming services, cell phones, or even alcoholic beverages.
“CNC looks at the gross flow and assumes that it ‘disappeared’ from the retail sector, which is a gross methodological error,” he says.
Regarding the criticism of the betting companies, Gelfi believes it will intensify as the election campaign progresses. “The topic of ‘gambling’ is a goldmine for political populism, it’s easy for a candidate to slam gambling to show concern for morality and public decency or for the domestic economy, without having to offer real solutions to the debt problem.”
Full interview with André Gelfi
iGB – What is your take on the Novo Desenrola Brazil programme?
André Gelfi – The programme is a positive initiative from the perspective of the nation’s financial health. Debt has long been a structural problem in the country, and any measure that helps citizens clear their credit records and regain their purchasing power is worthwhile. For us in the legal gambling industry, it is key that consumers be financially sound and that gambling be viewed as entertainment. The effectiveness of the programme’s financial protection measures depends, above all, on a rigorous crackdown on the illegal betting market.
Our market accounts for just 0.46% of Brazilian household consumption, according to a study by LCA Consultoria, which cross-referenced data from the 2025 as collected from the Secretariat of Lotteries and Betting. [TV] streaming spending, for example, represented twice this value. Debt is concentrated in the cost of credit, especially revolving credit on credit cards, which carries extremely high interest rates.
Blocking could result in R$10.8 billion in World Cup tax loses
iGB – From your point of view, is preventing programme beneficiaries from gambling the right thing to do?
AG – There is a very important nuance to this issue: Brazilians aren’t going to stop gambling. Restricting access to the regulated sector could drive users to migrate to underground platforms, which already generate nearly BRL40 billion. Combating the illegal market is the most urgent step to prevent unlicensed operators, often associated with organised crime, from taking advantage of restriction windows to attract the vulnerable public.
This concern is exacerbated by the approaching World Cup, a time when sports betting volumes naturally increase, and for the potential loss of R$10.8 billion in tax revenue for the country if betting activity shifts to the underground market.
As an institute, we reinforce that the real protection of citizen and the integrity of the programme undergo a coordinated action between government and private sector. We advocate for public policies that combine financial education, the promotion of responsible gambling, and a strategic crackdown on illegal websites, ensuring that entertainment takes place exclusively within a safe, transparent and properly regulated ecosystem.
‘Gambling is a convenient scapegoat‘
iGB – If gambling accounts for only 0.46% of household spending, how can it be linked to debt?
AG – That is the major contradiction we are trying to clarify. The study by LCA Consultoria Econômica shows that spending on gambling is negligible compared to other expenses, such as streaming services, cell phones, or even alcoholic beverages.
It also emphasises that the main factor driving debt in Brazilians’ budgets remains the high cost of credit. It is simplistic to attribute these debts solely to betting. Debt in Brazil is multifactorial: high interest rates, food inflation and lack of financial education. Gambling has become a convenient scapegoat, but the numbers show that it is not the cause of the financial crisis facing families.
iGB – How can we combat illegal websites when new platforms pop up every day?
AG – Action must be technical and ruthless. The regulations that took effect in January 2025 were the first step, but the fight continues. We need effective IP and URL blocking by Anatel [the Brazilian National Telecommunications Agency]. In addition, financial strangulation, preventing payment providers from doing business with websites that do not hold a licence from the Secretariat of Lotteries and Gambling. Another point is advertising control, banning influencers and platforms that promote illegal websites. We have an infographic that illustrates the causes we support.
Lies and criticism during the election season
iGB – Why is there so much misinformation about the sports betting and online gambling industry?
AG – We are experiencing the “stigma of the new”. The industry has emerged from the shadows very quickly, and that is causing fear. Furthermore, the lack of official historical data in Brazil has allowed any narrative to gain traction. There are also groups with conflicting economic interests that take advantage of the public’s lack of technical knowledge to spread moral panic. That is why the IBJR places such a strong emphasis on transparency.
iGB – Do you think the betting companies will continue to face heavy criticism during the election process?
AG – No doubt about it. The topic of gambling is a goldmine for political populism. It’s easy for a candidate to slam gambling to show concern for morality and public decency or for the domestic economy, without having to offer real solutions to the debt problem. We will have to be resilient and continue to counter political criticism with economic facts.
‘Gross methodological error‘
iGB – Recent data released by CNC show that bookmakers withdrew nearly R$144 billion from the market. Where did they get that information from, and why are the numbers so different from those released by the Secretariat of Prizes and Bets? What is their goal in spreading false information?
AG – This study conducted by the Brazilian National Trade Confederation (CNC) is based on an assumption that is completely at odds with the official data. They estimate that the betting market is worth R$30 billion a month.
However, official government data from the Secretariat of Lotteries and Betting (SPA) indicates gross revenue of R$37 billion per year. CNC looks at the gross flow and assumes that it “disappeared” from the retail sector. This is a gross methodological error.
As I mentioned earlier, the study recently released by LCA indicates that gambling accounts for about 0.46% of household spending, which is less than what is spent on alcoholic beverages or cell phones, and has a far smaller impact than bank interest rates. The weight of this in debt is very low.
The IBJR even sent a formal notice to the CNC, demanding methodological transparency and full access to the databases underlying the study. It is based on an assumption that is completely at odds with the official data. I believe the purpose of publicising these inflated figures is to push for more restrictions or to protect traditional retail sectors that are facing competition for consumers’ “share of wallet”.
Research and open dialogue with the government
iGB – How can we provide the market with accurate information about the industry and how can we convey this to the government?
AG – The way forward is scientific rigour. The IBJR has been investing in research and maintaining open communication with the SPA and the Ministry of Finance. We need to demonstrate that the industry creates jobs, pays substantial taxes and employs cutting-edge technology to identify problem gambling.
The transparency of the compliance reports we submit to the government is our strongest demonstration of good faith. For the public, we have included a “Myths and Facts” section on our website to help debunk misinformation.
The original Portuguese version of this interview can be found on the iGB Brasil site.
Original article: https://igamingbusiness.com/offshore-gaming/ibjr-brazil-director-desenrola-brasil-programme-black-market/
