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The top TV networks in Brazil are reportedly stirring up a storm over the possibility of a nationwide ban on betting platforms, fearing that such action could have a dramatic impact on their advertising and corporate operations.
Broadcasters have already been grappling with a lack of betting firms’ ad spend since the height of spending around the previous FIFA World Cup. A possible ban would put additional strain and also have an impact on corporate partnerships with betting brands.
The impact on the business isn’t limited to advertising. Globo, SBT and Band also have affiliations with companies in the betting industry, like the companies BetMGM, Bet do Milhão, and BandBet.
Broadcasters Increase Political Pressure in Brasília
In the background, however, television companies have reportedly stepped up their campaign against any limitation on the regulated betting market in Brasília. Representatives have been activated, and owners of affiliated stations who also sit in Congress are alleged to have been given a heads-up to attack it on constitutional grounds.
The networks say that the government shouldn’t be involved in people’s choice of freedom. One senior media executive compared the restrictions on betting to a ban on an object that might be used for other purposes:
“It is the same as wanting to ban knives because a minority uses knives to stab people.”
The broadcasters argue that banning a bookie would not necessarily serve the desired public health goals and would actually make illegal bookies more powerful.
Football Clubs and Federations Also Oppose Restrictions
Meanwhile, football clubs and federations have also voiced objections to the prospect of regulated sports betting restrictions, while the TV industry is likewise concerned. On Thursday night (17), several organizations presented their manifesto “The End of Brazilian Football”, which supports their commercial ties with licensed betting companies.
Wagering companies have emerged as crucial sponsors for the clubs throughout Brazilian football, and the betting sector is a critical commercial source for the clubs. The organisations say a sudden shift in the regulatory structure may impact on existing sponsorship contracts, financial planning and investments in the game.
Clubs Warn of Growth in Illegal Betting
The manifesto states that even if the regulated betting market were abolished, there would not be a decline in the demand for betting. Rather, consumers may be directed towards unlicensed platforms that are not subject to taxes and consumer-protection measures.
“Making this model unviable will not make betting disappear. It will only open the way for consumers to migrate entirely to illegal platforms, which do not pay taxes, do not respect limits, do not offer protection mechanisms and do not cooperate with authorities.”
The clubs are also alerted to the risks to the financial stability of clubs and the clarity of the rights of current agreements.
“The consequence will not only be a door wide open to illegal betting, but a fatal blow to Brazilian football, leading many clubs toward insolvency. This is without mentioning the legal and professional uncertainty that the measure would create, especially for contracts that were regularly signed and plans built under the regulatory framework approved by Congress and established by the State itself.”
The discussion now goes beyond just the betting operators, and extends to broadcasters, football bodies and other companies that have established commercial relations in Brazil’s existing regulated environment.
Source: iGaming Brasil
