Top soccer clubs in Brazil have united to collectively oppose a government proposal that aims to cap commercial team sponsorships involving gambling companies. This comes as the Brazilian Senate sees the progression of Bill 2,985/2023, which further seeks to implement stricter regulations on betting-related advertisements. Not just the coalition, but other critics as well express concerns that the bill could undermine the foundation of the nation’s sports industry.
The shared declaration from the clubs emphatically declared the bill “a prohibition disguised as a limitation,” highlighting its potential threat to approximately R$1.6 billion ($281 million) in annual revenues for the teams. They emphasized that these funds are crucial not just for top-tier clubs but also for sustaining lower-league teams.
Should the bill be enacted, it plans to eliminate static gambling operator signage in stadiums during matches and restrict betting-related ads on TV, radio, and digital platforms across the country.
The announcement also aligns with a previous decision by the Brazilian government in April, which mandated licensed betting firms to enroll in a supervised complaints protocol.
Additionally, the bill intends to limit soccer teams to only one betting sponsorship, considerably slashing the revenues that clubs traditionally earn from numerous sponsorship deals. Moreover, the proposed changes might force clubs, which have entered into multi-year sponsorships with betting companies, to renegotiate – or even prematurely end – such agreements, under the risk of legal battles and financial repercussions.
### Brazil Bill Limiting Gambling Sponsorships Could Create a Monopoly, Critics Warn
Despite the financial risks posed by the bill, the clubs also highlighted that the restrictions could “severely infringe upon the principles of free competition.” They argued, “Allowing only one betting operator to advertise in stadiums would merely funnel consumers to a single market competitor, becoming the sole beneficiary of this action.”
Industry groups quickly echoed the sentiment, cautioning that such legislative changes might drive bettors towards unregulated platforms, since legal advertisements typically guide consumers to officially sanctioned, licensed operators.
During a recent Senate debate, Senator Carlos Portinho, who proposed the amendment, defended the bill citing an increase in problematic gambling in Brazil and his view that the industry could not self-regulate. Portinho stated, “Football clubs are addicted to betting. Communication companies are addicted to betting, to advertising, to the money they receive from betting… and with this pandemic, it is up to us to impose discipline.”
### Global Momentum Against Gambling Ads
The initiative by Brazil mirrors a global movement as regulators aim to reduce gambling sponsorships in sports. A similar stance was observed in the Netherlands, with the Dutch Gaming Authority, or Kansspelautoriteit (KSA), announcing stricter enforcement starting July 1 on the ban of sports gambling sponsorships and advertisements.
While Brazil’s soccer teams have joined in response to the bill, they are advocating for lawmakers to consider a more measured approach. In doing so, they reaffirmed their support for responsible gambling but implored the government “to act with prudence, responsibility, and awareness of the harm that could be inflicted on football and Brazilian sports, both of which are cultural assets of the Nation.”