Brazil betting ban puts football shirt sponsorships under threat

Brazilian President Luiz Inácio Lula da Silva signed a ban on fixed-odds betting on September 25, bringing a major source of football sponsorship under threat. AFP reported that 13 of the country's 20 top-flight clubs have betting platforms as their main shirt sponsor, underlining the decision's importance to the domestic game.

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According to Brazil's health ministry, the measure covers sports betting and online games in both physical and digital settings, including operations authorised by state and district authorities. Other lottery categories already permitted by law are excluded. The restrictions cover offering and operating fixed-odds betting, acting as an intermediary and advertising those services.

Several clubs, including Flamengo, opposed the prohibition and said betting-company sponsorship was essential to their finances, AFP reported. The agency also identified Neymar and Vinicius Junior as prominent advertising figures for the platforms. The objections concern a commercial relationship that extends from club shirts to campaigns featuring some of Brazil's best-known players.

The ministry's published timetable sets out a phased closure. New deposits were prohibited from September 25, while customers have until 23:59 on October 5 to withdraw money voluntarily. Betting websites and applications are due to go offline from October 6. Companies must also remove physical advertising and outdoor sponsorship material by October 5.

Remaining customer balances are to be reported to financial institutions on October 7 and 8, with banks scheduled to return the money from October 9 to 14, the ministry said. Where obstacles prevent repayment, Caixa Econômica Federal is to receive the funds and arrange their return from October 14. These procedures address money still held when platforms close.

AFP reported that parliamentary approval is still required to make the measure permanent. Betting platforms were authorised in 2018 and regulated by Lula's government in late 2023, when operators became subject to rules and taxes. Industry associations warned that prohibition would push customers towards unregulated sites, while the government framed its action as a response to gambling-related harm and household debt.