Sports betting companies have committed to investing R$2 billion (USD$343.9 million) in Brazilian football in 2025. This investment will take the form of advertising and sponsorship. This latest move by the sports betting industry is similar to a global practice where partnerships between sportsbooks and football clubs have grown, often with niche industries like Bitcoin casino platforms and online gambling sites sponsoring teams. As more and more people are using iGaming platforms as their entertainment hubs, these establishments are coming up with innovative incentives, rewards, and business models; sports sponsorships being one of them.
Football is Brazil’s most popular sport, and this move by sportsbooks shows the growing interest in the sports betting industry. However, it is also worsening the rivalry with traditional retail sportsbooks.
According to the National Association of Games and Lotteries (ANJL), the investment will be distributed between football federations, clubs, and advertising forms. The ANJL represents 21 sports betting companies.
This massive sum is likely to have a transformative impact on the media in the country. As it stands, R$320 million ($55 million) will be invested in open TV, while R$150 million ($25.7 million) is set aside for closed TV. Radio is set to receive R$35 million ($6 million) and digital media has been allocated R$100 million ($17.2 million).
However, the main beneficiary of this investment is federations and clubs. Football teams have always been in favor of regulations that encourage sports betting, and they’re set to receive a slice worth R$600 million ($103 million). Federations and advertising boards in football stadiums will receive R$160 million ($27.5 million) and R$790 million ($135.8 million) respectively.
Notably, Palmeiras has never displayed any sports betting companies on their uniforms. However, this beloved club is ready to close a deal with Sportingbet, and the company will transfer over R$100 million per year to feature its branding on the team’s shirt.
The Parliamentary Inquiry Commission (CPI) in the Senate has been analyzing the influence of betting companies, pointing to ongoing disputes over advertising dominance.
The Brasileirão, the main football championship, has for many years been sponsored by Assaí, a self-service wholesale company listed on the São Paulo Stock Exchange. However, following the investment by sports betting companies, this championship will now enjoy Betano as its main sponsor.
This investment news was not embraced by all. The National Confederation of Commerce (CNC), the main retail body in Brazil, filed a lawsuit in the Supreme Federal Court (STF), trying to get the country’s betting laws (Law No. 14,790/2023) to be declared unconstitutional. At the start of November 2024, the STF issued a preliminary decision to accept the legal challenge filed by the CNC. This lawsuit has raised questions about the long-term sustainability of betting sponsorship dominance in football, as well as the impact it would have on younger fans exposed to these advertisements.
It is unlikely that Brazillian clubs will reject the investment of sports betting company sponsorships. Notably, when it comes to national teams (including the Brazilian national team), there are no notable sponsorships on their jerseys due to football federations having the right to prohibit advertising on football kits.