Brazilian Soccer Clubs Oppose Ban On Betting Sponsors

Brazilian soccer clubs are raising alarms over a proposed ban on betting sponsorships that could severely impact their financial sustainability. Over 50 clubs recently issued a joint statement expressing their apprehensions regarding Senator Carlos Portinho’s bill, which seeks to impose restrictions on the display of betting advertisements within stadiums and sports arenas.

These clubs estimate that restricting sports betting ads could result in an annual revenue loss of approximately R$1.6 billion (around US$285 million). The statement emphasized, “The prohibition of operators’ branding on static properties—such as billboards—within sports venues, as outlined in the revised bill, jeopardizes vital revenue streams for the clubs.”

The Senate Sports Committee approved the bill last Wednesday, and it is now set for debate and voting in the full Senate before moving on to the Chamber of Deputies for further consideration.

### Financial Realities and Club Management

Senator Portinho, who has revamped the original proposal by Senator Styvenson Valentim, has dismissed the clubs’ concerns. He asserted that many clubs have been financially unstable for an extended period due to mismanagement. “Clubs are addicted to the revenue from betting. Media companies also rely heavily on this income. We must tackle this issue urgently,” he stated.

The initial bill proposed by Senator Valentim aimed for an outright ban on all betting advertisements. Following two public hearings, which provided feedback from various stakeholders, the final version emerged.

Senator Romário, a celebrated 1994 World Cup champion, proposed an amendment on May 23 that would allow existing contracts to remain intact under current regulations, a measure welcomed by the clubs. Notably, approximately 75% of Brazilian soccer clubs currently hold sponsorship deals with betting companies.

Romário also advocated for the inclusion of retired athletes in betting advertisements, emphasizing, “This isn’t about self-interest. While many former players are financially secure, others struggle. This could offer them much-needed support.”

### The Brazilian Betting Landscape

This proposed ban occurs amid a burgeoning betting market in Brazil, which recently opened its doors to licensed operators. New regulations introduced in January have catalyzed rapid industry growth. Projections for this year estimate that online betting companies will generate BRL 31 billion (US$5.4 billion) in gross gaming revenue, potentially escalating to BRL 64 billion (US$11 billion) by 2030.

The new regulatory framework targets offshore sportsbooks, mandating all operators to pay requisite fees and taxes, enforce responsible gambling practices, and maintain an official Brazilian website utilizing the “.bet.br” domain extension.

### International Context of Betting Restrictions

Clubs have pointed to international precedents in their arguments against the proposed ban. Italy implemented a ban on gambling sponsorships in 2018, which has reportedly led to a €700 million (US$786 million) decline in revenue over three years.

Similarly, the UK is tightening regulations on gambling advertisements. Premier League clubs recently voted to prohibit advertisements from betting companies on the front of their jerseys starting next year, despite 11 clubs currently benefiting from such sponsorships, generating an estimated £104 million per season.

Moreover, the UK Gambling Commission levied a £3.3 million fine against TGC Europe, which handles sponsorships for six clubs, citing a failure to conduct due diligence on partners.

### Conclusion

The unfolding debate around betting sponsorships in Brazil reflects larger trends within the global gambling industry. With clubs asserting the critical role of betting partnerships in maintaining financial viability, the potential ramifications of such a ban underline the necessity for balanced regulatory approaches that safeguard both the integrity of sports and the welfare of participating organizations.

In an industry where revenue streams are closely tied to advertising partnerships, the resolution to this matter could set significant precedents for both Brazilian soccer and the broader gambling landscape.