Brazil's Finance Ministry Defends Betting Ban

Brazil's Finance Ministry defended the controversial betting ban before the Supreme Federal Court. The ministry acknowledged that the regulated market had improved player protection. However, it argued that licensing, taxation and player protection measures were not enough to prevent the wider social harms of gambling.

At Tuesday's (November 3) hearing, the court discussed whether the ban, introduced last month, was consistent with the constitution. The ministry said the regulation strengthened the fight against illegal operators. According to the ministry, players became poorer by 62 billion R$ (11.3 billion dollars) because of money they lost to betting companies. The ministry also estimated that betting reduced Brazil's GDP by between 120 billion R$ (21.9 billion dollars) and 140 billion R$ (25.6 billion dollars).

At the hearing, the Brazilian Football Confederation (CBF) warned that the ban could seriously undermine the financial structure of football clubs. According to the CBF, betting companies are the main sponsors of 27 of the 40 clubs in the top two divisions. The value of these agreements is about 1 billion R$ (183 million dollars), which makes up 35 percent of the clubs' total sponsorship revenue.

Flamengo Vice President Flávio de Araújo Willeman said clubs had planned their finances around betting sponsorships that the government had approved. Willeman said Flamengo could lose 430 million R$ (79 million dollars) a year because of sponsorship and broadcasting arrangements. The Brazilian Olympic Committee also warned that funds from betting partnerships could make up around 20 percent of its 2027 budget.