Gamblers in Brazil Stop Eating Pizza and Going to the Movies to Spend on Bets
Consumers reduce spending on basic products to include sports betting in the budget, research says
"Sometimes I think about buying pizza, but then I see Argentina and Canada playing on TV, for example. Then I prefer to bet, to see if I win and, with that money, buy the pizza. But if I don't win, I stick to rice and beans."
The testimony of college student Osmar Neto, 20, illustrates a new consumption behavior gaining strength in Brazil. Attracted by the seemingly easy money from online sports betting, known as bets, consumers have been reducing purchases in other segments, especially clothing, supermarkets, and travel, according to research by the Brazilian Society of Retail and Consumption.
A report by Santander Bank reveals that the participation of retail in family spending fell from 63% in 2021 to 57% in 2023. At the same time, bets increased from 0.8% of family income in 2018 to something between 1.9% and 2.7% in 2023.
"We had already been noticing a recovery in Brazilian income last year, but the consumption rebound was not happening at the same level," says Ruben Couto, an analyst at Santander.