Last week, representatives from prominent São Paulo football clubs, including Corinthians, Palmeiras, São Paulo, Santos, and Juventus, convened at the São Paulo Football Federation to discuss their collective response to proposed legislation that would ban betting advertisements throughout the city.
The city council is considering a bill that could be voted on as early as next week, presenting significant implications for local clubs. Roughly 40 individuals from the clubs' legal, marketing, and communications departments joined executives from the betting industry to assess the potential financial fallout of these measures, which threaten existing sponsorship deals with betting companies.
One pressing concern among the attendees is Bill 560/2025, which is currently under deliberation. This legislation aims to prohibit all forms of advertising by betting companies during events held in São Paulo, regardless of whether they are organized by public or private entities.
The bill would extend its restrictions to include signage, banners, and advertisements in sports venues like stadiums and gyms, as well as disallowing betting ads on public transport, including bus exteriors and panels. The enforcement of this proposed law carries heavy penalties, imposing fines of BRL50,000 (approximately $10,000) and potentially halting the ability to host events for up to two years.
While the draft does not outright ban betting sponsorships on club jerseys, several city councillors are advocating for an amendment to include this restriction. Clubs are particularly worried that without the ability to promote their betting partners, they could struggle to secure vital sponsorship revenue, with Corinthians, Palmeiras, and São Paulo collectively earning around BRL350 million annually from contracts with betting firms.
Club officials also fear that they might be compelled to move matches outside of São Paulo to uphold their advertising contracts. In response to the bills, stakeholders are contemplating educational initiatives and coordinated actions while engaging with city political leaders.
Reinaldo Carneiro Bastos, president of the São Paulo Football Federation, articulated the league's concerns, stating, "If the city’s clubs lose this revenue, it will create a disparity that extends to the pitch." He pointed out that betting advertisements are a crucial income stream for clubs, which could put them at a competitive disadvantage compared to teams in other regions that still allow such promotions.
