Brazil's football clubs and sports organizations are sounding alarms over a potential loss of significant funding due to the country’s impending ban on betting. The Brazilian Football Confederation (CBF) has predicted that this prohibition could lead to a revenue deficit of BRL420 million ($76.5 million) in 2027, particularly relating to naming rights for competitions, including sponsorship agreements with Betano for the top-tier league and Superbet for the second tier.
During a public hearing at the Supreme Federal Court (STF) on Tuesday, 34 entities voiced their concerns regarding Provisional Measure 1.394, which aims to prohibit betting in Brazil. Igor Mauler Santiago, a lawyer for the CBF, noted that 27 of the 40 clubs in the country's top two football leagues are currently backed by betting companies as their primary sponsors. The total worth of these agreements is BRL1 billion, comprising approximately 35% of the clubs' total sponsorship revenue.
Santiago emphasized that the financial implications of the betting ban extend beyond mere shirt sponsorships, impacting the overall value of broadcasting rights and other advertising revenues, such as pitchside board promotions.
"CBF trusts that the three branches of government will be able to reach an appropriate and reasonable solution, balancing the important issues of health, legal security, and economic and sporting development," he stated during the hearing.
Clubs elaborated on their financial vulnerabilities, with Flamengo estimating a loss of around BRL430 million annually from its Betano sponsorship and broadcast rights. Flamengo Vice President Flávio de Araújo Willeman explained that the club entered into its sponsorship agreements based on the existing regulatory framework established by the government.
"It was on this basis that Flamengo entered into contracts with betting companies that displayed sponsorships on the jerseys," Willeman said. "It was on this basis that Flamengo planned its financial structure for the years following the signing of the contracts."
Willeman also argued that the government should seek ways to regulate the sector rather than resorting to outright prohibition. "If there are problems with betting, let’s not choose the easiest way out, which is its total repeal. Let’s confront the problem with more effective regulation to curb the harmful effects," he suggested.
Fluminense's president, Mattheus Reis e Montenegro, stated that betting sponsorships comprised 34% of the club's revenue in 2025. He warned that smaller clubs in Rio de Janeiro might face a 50% revenue decline due to their reliance on betting sponsorships and broadcast income from the Campeonato Carioca.
Montenegro noted, "The Provisional Measure directly affects two of these revenues," referring to sponsorship and pitchside advertising, in addition to broadcast rights. "It eliminates the main sources of income for football."
Botafogo described its recent contract with Vbet as the largest sponsorship agreement in its history, which also supports its youth academy and women's football initiatives. Club representative Bichara Abidão Neto called for urgent suspension of the measure's effects.
Cruzeiro reported its betting sponsorship currently equivalent to four or five payrolls. Club representative José Francisco Manssur emphasized, "I believe that the solution to the problems caused by addiction and indebtedness lies in regulation and oversight, not in prohibition."
Vitória indicated that sponsorship and pitchside advertising from betting firms represent almost 17% of its annual revenue, which amounts to BRL290 million. São Paulo disclosed that it earned approximately BRL101 million from sponsorships and advertisements connected to the betting sector from January to September, highlighting a significant sponsorship deal with Superbet lasting until 2030.
The issues presented at the hearing are not limited to professional football. The Brazilian Olympic Committee (COB) estimates that funding linked to betting will total BRL130 million by 2027, about 20% of its budget. Including other sports organizations that rely on these funds, the overall estimate rises to BRL325 million, as COB representative Pedro Henrique Rebelo de Mendonça cautioned that diminished funding could necessitate adjustments or cancelations of planned projects.
“Any reduction in revenue implies readjustment or cancellation of planned projects,” he said. “If the COB has fewer resources at its disposal, there is potentially less availability for the confederations of various sports.”
The Brazilian Paralympic Committee echoed these concerns, asserting that betting-related funding has been vital for the growth of Paralympic sports and inclusion efforts. Its president, Mizael Conrado, referred to the funding as "fundamental" for development.
The National Federation of Professional Athletes (Fenapaf) warned that loss of funds could lead to job losses and make athletes more vulnerable to manipulation schemes regarding sporting outcomes. Representatives at the hearing highlighted that contracts were signed and budgets planned under a government-established regulatory framework that permitted betting companies to operate.
Minister Luiz Fux convened the hearing as part of the Supreme Court's review of Provisional Measure 1.394, which is being challenged by ANJL, seeking to suspend its effects. A decision on the ban's future has not yet been announced, with Fux set to outline the next steps in the proceedings.
