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There is a bill that is currently under review in the Brazilian Senate, which could greatly influence the financial aspect of Brazilian football clubs. The bill seeks to prohibit any kind of advertising concerning sports betting and online gaming.
If the bill is passed, Serie A clubs could lose up to R$1 billion annually, considering that many of the clubs rely heavily on the partnerships they have with betting companies.
At the moment, the bill is waiting for the designation of a rapporteur in the Constitution and Justice Committee (CCJ). Earlier this month, the Science and Technology Committee (CCT) voted in favor of the bill, which is a substitute bill proposed by Senator Damares Alves, replacing the original bill proposed by Senator Randolfe Rodrigues.
What the Bill Proposes
The bill seeks to amend the Sports Betting Law in Brazil and impose a ban on any kind of communication that promotes fixed odds betting, whereby the potential payout is set at the time the bet is placed.
The bill also seeks to prohibit advertisements through various media platforms, including radio, television, newspapers, and magazines. The bill also seeks to prohibit betting companies from sponsoring sports clubs and events, as well as any kind of indirect advertisements during the broadcasts or TV shows.
The bill also seeks to prohibit the pre-installation of betting apps in various devices, including smartphones, tablets, and smart TVs.
The Senator proposed the bill because advertisements often promote betting as a lucrative financial opportunity. According to Senator Randolfe Rodrigues, the advertisements “present bets as a means of livelihood and investment, inducing people who have never gambled to enter this market through the offer of bonuses.”
Senator Damares Alves was in support of the measure and believed that the sector should be regulated further, saying that the goal is to “impose clear limits on the commercial activity of betting companies.” She further added that “the proposal presents a legislative solution in proportion to the seriousness of the problem diagnosed by the Federal Senate.”
Political Outlook and Market Concerns
Although the measure is moving in the right direction in the Senate, analysts predict that the measure might fail to move further. Even if the measure passes in the Senate, the president of the Chamber of Deputies might refuse to vote on the measure.
Industry players have criticized the measure harshly, saying that if the measure passes, the illegal betting sector could thrive more than the legal sector.
Estimated statistics from the sector indicate that the illegal sector already accounts for 49% of the market. According to a study done by the company Yield Sec, the Brazilian government lost R$4.6 billion in taxes in the first half of 2025 because of the R$18.1 billion generated by the illegal betting sector in the country. Currently, 84 companies are authorized by the Brazilian government to operate in the country, and 185 brands are already operational in the country. Two more companies are operational in Brazil by virtue of the judiciary.
Economic Impact on Sports
After the Brazilian government regulated the sector in January 2025, the sector has been growing significantly in Brazil. According to the Brazilian government, the sector has generated R$37 billion in the past year. The Brazilian government further says that 25 million people in the country bet in the past year. On the other hand, the illegal sector has generated about R$30 billion in the country.
Industry experts have pointed out that the restrictions imposed on the advertising of these companies could have unforeseen consequences. In their words, “Restricting the communication of authorized companies could generate the unintended practical effect of limiting those who comply with the law, while those already operating outside it will continue to do so.”
Football’s Growing Dependence on Betting Sponsors
Football clubs in Brazil are highly dependent on betting sponsors. At the moment, 14 out of the 20 Serie A clubs are sponsored by betting firms, with the company’s logo being the main sponsor in 13 cases.
Last year, betting firms invested more than R$1.1 billion in football clubs in Brazil. In 2026, the figure is expected to be the same.
The Brazilian Institute of Responsible Gaming (IBJR) has revealed that football clubs are earning 2.6 times more from their betting sponsorships than from their prize money in sporting events.
One of the biggest sponsorship deals in the country is that of Betano, a company that is part of the Kaizen Gaming conglomerate. This company is reportedly paying R$268 million to Flamengo every year.
The betting firms’ executives have noted that the connection between the firms and football will not end. In his words, “Betting companies will not leave football because our main business is sport. It is football.”
Source: iGaming Brasil
