October 13: Brazilian professional soccer is going through a sponsorship crisis. On September 25, the government Provisional Measure 1,394/2026 signedprohibiting the operation, offer, intermediation and advertising of fixed-quota bets throughout the country.
This meant that sponsorships and advertising contracts with providers of these services were banned from 6 October. Sponsorships and betting-related advertising from betting websites and apps had become a source of more than R$1 billion in revenue. Money that teams didn’t have immediate means to replace.
The re-election of Lula da Silva to the presidency of Brazil will not be a victory for the betting industry or football sponsorship. While Lula in late 2024 launched Brazil’s regulated online betting market, opening up a gold rush for soccer sponsorship and premium advertising positions, he later backtracked on the interim measures. Hopes of a return to the booming market had been based on right-wing opposition candidate Bolsonaro, son of former Brazilian president Jair Bolsonaro.
How much money did Brazilian clubs get from betting sponsors?
The scale of the club sponsorship problem becomes clearer when looking at the bigger picture. According to data from Sports Value informed by Poder360, betting companies provided approximately R$ 1.143 billion in sponsorships to the 20 biggest clubs in Brazil in 2025.
This represents 34% of their combined marketing revenue. The amount soared in 2024, as bookmakers moved quickly into the market, focusing on getting pieces of inventory to the country’s biggest teams.
Flamengo received approximately R$269 million in betting sponsorships in 2025, while Corinthians received R$150 million, São Paulo R$113 million and Palmiras R$100 million. Betting accounted for 73% of São Paulo’s marketing revenue, compared to 54% for Corinthians and 57% for Botafogo. At the other end of that spectrum, betting advertising accounts for just eight percent of Red Bull Bragantino’s revenue.
Therefore, the new policy will not affect all teams equally.
The shirt sponsorship issue is only part of the story
The first change has been the disappearance of betting logos from shirts, stadium advertising and other commercial spaces.
Depending on how you count, 13 or 14 teams in Serie A have a betting company as their main sponsor, and 18-20 teams will have to remove their team and stadium logos.
However, sponsorships go beyond that. Clubs have argued that betting money supports other areas of football, while sponsorship spending contributes to the wider commercial ecosystem around the sport. The lack of gambling revenue will affect all teams.
Sixteen Brazilians clubs had joined the legal challenges against the October 2 ban. They argue that the industry was already regulated and that sponsorship deals were already authorized. His submission to the Supreme Court also argues about the loss of income.
What happens to club budgets when that income disappears?
Clubs must scramble quickly to deal with the shortfall by cutting expenses where possible and trying to find additional income and new sponsors. Stadium operations will continue and players’ contracts will be honored, but it is a major threat to the sustainability of clubs that budgeted for betting sponsorship included.
The fallout could also extend beyond first-team squads. Youth programs and minor league teams will likely be among the first to experience cuts. Since gambling promotional offers are now illegal, a new market for sponsors may emerge.
Can other sponsors fill the gap?
Brazil’s football sponsorship market is already vast, with 164 different brands appearing on Serie A shirts by 2025, up 24% from 132 the previous year. This includes companies working in finance, real estate, construction and other consumer-facing businesses.
Flamengo’s shirt portfolio in 2025 included Adidas at around R$70 million per year, BRB at R$25 million and Shopee at R$12 million, as well as other smaller sponsors. The club also had an agreement with Mercado Livre that was worth around R$22 million per year before it ended.
Potential replacements are already discussing their chances of entering the market that betting companies are being forced to leave. Pharmaceuticals Cimed, which sponsors Palmeiras, Cruzeiro and the Brazilian national team, has already said it is in talks with ten clubs that are losing their betting sponsors.
Alternative betting options
The gambling industry itself is greatly affected by the new regulations, but those who want to place bets will find ways to do so outside of Brazil. Placing bets using sites abroad is simple enough and with the use of crypto sports betting platforms, a player can completely circumvent national gambling laws and financial systems.
CryptoManiaks has written about the reliability of crypto bets. These bets are tied to smart contracts and are therefore completed when conditions are met. Brazilian players have access to these options and will inevitably use them more now that traditional betting is not an option.
Could the government help?
There have been discussions about government help for clubs hit by the losses. The reported aim would be to help clubs restructure existing debt rather than directly replace lost sponsorship revenue.
Lower financing costs or longer repayment periods could give clubs more room to absorb a commercial shock. However, this is not the same as recapturing income that previously came from betting contracts.
Lula used the restrictions during his election campaign to take the moral high ground. But such is the importance of soccer to Brazil’s national identity and social fabric that a more pragmatic approach could now be called for, especially with the intertwined interests of many of Brazil’s biggest industrialists in clubs and their ownership.
The short-term future of online gambling is in the hands of Congress and regulators, but Lula can very easily and quickly take the leash off the industry and restore the opportunity for club sponsorship. This would likely come with more regulation for clubs and online bookies. And an important fiscal opportunity for Lula and his social program. In the end, this fiscal opportunity could prove to be the deciding factor.
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