Brazil's betting ban puts club sponsorships at risk

Sports clubs and organizations in Brazil have warned that the betting ban could eliminate a major source of revenue for the sports sector. The Brazilian Football Confederation (CBF) announced that it expects a revenue loss of 420 million reais (76.5 million dollars) in 2027. This figure is based on losses in the naming rights of the top division and the second division. The naming sponsor of the top division is Betano, and the naming sponsor of the second division is Superbet.

In a public hearing held on Tuesday at the Supreme Federal Court (STF), 34 organizations submitted their opinions. The hearing concerned Provisional Measure 1,394, which bans betting activities. CBF lawyer Igor Mauler Santiago said that 27 of the 40 clubs in the first two divisions have a betting company as their main sponsor. The total value of these deals is 1 billion reais, equal to 35 percent of the clubs' total sponsorship revenue.

Flamengo calculated that it could lose about 430 million reais a year in revenue from its main sponsorship with Betano and from broadcast rights. Vice president Flávio de Araújo Willeman said the contracts were signed based on the government's regulatory framework and that the club planned its finances on that basis. Willeman argued that the problems should be solved through more effective regulation rather than a ban.

Fluminense President Mattheus Reis e Montenegro said betting sponsorships made up 34 percent of the club's 2025 revenue. He added that smaller clubs in Rio de Janeiro could see their revenue fall by 50 percent, including revenue from Campeonato Carioca broadcasts. Montenegro said the Provisional Measure directly affects income from sponsorships, pitch-side advertising and broadcast rights.