Brazilian soccer could lose over R$ 1 billion due to restrictions on betting companies

Clubs and experts estimate that a Provisional Measure targeting sports betting and online gaming could cause losses amounting to millions in Brazilian football. The sector invests over R$ 1 billion annually in sponsorships. President Luiz Inácio Lula da Silva has indicated plans to issue a provisional measure introducing new restrictions on betting companies. Among the possibilities is a ban on online casinos, including the so-called “little tiger” games.. The government is also considering stricter rules for advertising in the sector and is expected to announce the provisional measure this Friday (25). In a more aggressive scenario, the federal government might even propose a total ban on the activity in the country. Clubs advocate for the continuation of the regulated market. The potential ban on sports betting companies has sparked a reaction among national football teams and organizations. Last week, several clubs issued a manifesto opposing the shutdown of betting operators in Brazil. The document advocates for the continuation of the regulated market. Flamengo, Fluminense, Botafogo, Vasco, Santos, Palmeiras, São Paulo, Corinthians, Cruzeiro, and Atlético-MG are among the signatories. The São Paulo and Rio de Janeiro federations also adopted this stance. The manifesto proposes strengthening consumer protection, education, and regulatory oversight, as well as combating clandestine platforms. For the clubs, the disruption of the legal market would eliminate one of football’s primary revenue sources. The teams even mentioned the possible “end of Brazilian football” in light of the loss of investments. What are the sponsorship figures in Brazilian football? Betting companies occupy a large portion of the prime space on Série A club jerseys. Contracts with top-flight teams alone generate over R$ 1 billion annually. Four teams exceed R$ 100 million per season in their current deals: Flamengo and Betano: R$ 268.5 million; Corinthians and Esportes da Sorte: R$ 150 million; São Paulo and Superbet: R$ 113 million; Palmeiras and Sportingbet: R$ 100 million. These agreements represent the largest sponsorship contracts in the history of the respective teams. Should the government completely restrict the activity, football sees no other sector capable of offering similar sums. Restrictions could expand the operations of underground betting sites. Bernardo Cavalcanti Freire, legal counsel for the National Association of Games and Lotteries (ANJL) and a partner at the law firm Betlaw, assesses the situation: “The only way to block the harmful effects is through regulation and education within a process known as channelization.” What is channeling? You need a regulatory phase where you bring everyone who wants to play into the fold—ensuring they understand they must operate within the legal market—and from there, you establish the controls. . The consultant adds that the sector drives various areas of the economy. Among them are sports, entertainment, and tax collection. Betting operators generated nearly R$10 billion in tax revenue for the government during 2025. However, Freire points out that broad restrictions could strengthen illegal platforms. “I think there is a major conceptual error within the government, which believes that betting companies are the cause. Betting companies are the consequence. So, today, people turn to these companies—largely for entertainment, but also to a significant extent because there is an economic crisis and a debt problem in the country,” he adds. A study conducted by the ANJL projects growth in the underground market should the government ban online casinos offered by authorized companies. The share of illegal sites could rise from 41% to 82%. Regulated market combines jobs and control mechanisms. João Fraga, CEO of Paag—a technology company focused on risk management for betting operators—highlights: “The regulated betting market is already delivering concrete results for society.” The sector accounts for more than 10,000 direct jobs and another 5,500 indirect ones, driving a vast production chain. In the social sphere, the regulated model represents a significant step forward by establishing responsible gaming practices, protecting minors, and ensuring the traceability of financial transactions—factors that strengthen transparency and the fight against fraud. In the executive’s view, the regulation creates control mechanisms for financial operations. The model also establishes protective measures for minors and encourages responsible gambling practices. Daniel Fortune, a content creator focused on raising awareness about betting, argues: “Betting advertising plays an important role in helping consumers identify which platforms operate legally and under regulation in Brazil.” However, this exposure must naturally be accompanied by responsible communication—including information on risks, encouragement to set limits, and content promoting responsible gaming—always in compliance with the guidelines of the Ministry of Finance’s Secretariat of Prizes and Betting (SPA/MF) and the National Council for Advertising Self-Regulation (Conar).. O post Brazilian soccer could lose over R$ 1 billion due to restrictions on betting companies apareceu primeiro em iGaming Brazil.