In recent years, the market for sports betting and online gaming has experienced exponential growth. With this, the sponsorships from bets have become an important part of the financial landscape of football clubs in Brazil. These agreements not only provide a significant injection of money but also attract attention and visibility to the involved brands. Out of the 20 teams in Serie A, 15 have a sportsbook as their main sponsor.
Football betting sponsorships are commercial agreements in which betting houses pay clubs to display their brands in prominent places, such as player shirts. These contracts are often multimillion-dollar and help clubs finance operations, including hiring athletes and investing in infrastructure.
The investment that betting companies make in sports events is high. In 2024, Flamengo announced Pixbet as its new main sponsor. The two-year agreement will guarantee the club R$ 170 million, or R$ 85 million per season. This is one of the largest sponsorship contracts in Brazilian football, reflecting the growing importance of betting in financing clubs.
Another example is São Paulo, which will have Superbet as its main sponsor in 2024, with a three-year contract that will yield R$ 52 million per season. Last year, Botafogo signed a two-year contract with Parimatch, which will pay R$ 27.5 million per season. Meanwhile, Cruzeiro signed a two-year contract with Betfair at the beginning of 2023, securing R$ 25 million annually. The renewal of Fluminense's contract with Betano, in July 2022, is estimated at R$ 20 million per year until 2025.
Often used interchangeably, the terms "sports betting" and "online betting" refer to different categories of gambling. The former involves predicting the outcome of specific events. Betting houses, such as Pixbet, Superbet, and Betfair, offer odds and markets for a variety of sports, from football and basketball to those less popular. As the focus is on anticipating the score, these sponsors are often associated with football clubs and other sports.
The term online betting, on the other hand, is broader and includes any form of gambling conducted on the internet, not limited to sports events. This can encompass virtual casinos, roulettes, and other gambling games. Online betting houses can therefore offer a diverse range of products, not just limited to sports betting.
Although sports betting and online betting are distinct, they are interconnected in that many betting houses operate in both categories. For example, a company like Betfair can offer sports betting and also have a virtual casino platform. Sponsorships often focus on sports betting, especially when associated with high-visibility events like football.
According to Emma Lindley, director of international expansion at Caf (a Brazilian facial biometrics and identification startup), the Gambling Act of 2005 expanded the gambling legislation from the 1960s, introducing the UK Gambling Commission (UKGC) as a new regulatory authority and implementing an updated licensing system in the United Kingdom.
"The law focused on three main objectives: preventing criminal activity in gambling, ensuring that gambling is conducted fairly and transparently, and protecting children and vulnerable individuals from potential gambling-related harms", she explained in an interview with Correio.
"At the time, very few markets had regulated sports betting and the United Kingdom did not have many examples worldwide to structure the new regulation. The main challenge was to balance the growth of the gambling sector, ensuring that the regulations were stringent enough to prevent harms related to this type of game and that adequate tax revenue was defined without driving operators away", said the British.
When asked about which lessons learned in the United Kingdom could be applied to the Brazilian context, Lindley highlighted that regulation is likely to need adaptation and will not be right the first time.
"It is important to stay attuned to the evolution of the sector and the functioning of the regulations, and be prepared to make the necessary adjustments. Self-exclusion, match fixing, economic accessibility assessment, and advertising were important topics in the United Kingdom and received additional focus since the introduction of the original regulation in 2005", she pointed out.
"Currently, casinos and betting companies sponsor football shirts and other aspects in sports events. Advertising is one of the areas that have been reviewed since the introduction of gambling regulation in the United Kingdom, and in 2023, the government concluded a consultation with the sector to review the extent of advertising across the industry", observed the director.
Regulation
Betting house sponsorships have proven to be a vital source of revenue for many football clubs, helping to cover expenses and finance operations. However, they also raise questions about the ethics and social impact of betting. The influence of betting houses on football can lead to debates about the balance between financial benefits and the social responsibilities associated with gambling.
As clubs continue to negotiate significant deals with betting houses, it is crucial to observe how these sponsorships affect the sport and society. Transparency and accountability in promoting and operating betting will be essential to ensure that financial benefits do not come at the expense of harmful practices.
For the executive of marketing and business Fátima Bana, founder and leader at Rent, the market for sports betting in Brazil is on the rise, and regulating this sector is essential to ensure sustainable and responsible development.
"Recently, several ordinances have been published to guide the exploitation of fixed-odds betting (including sports betting and online games). Therefore, we will discuss how these regulations impact the sector and how marketing can be used positively to promote recreational gaming in a healthy way, avoiding excesses and addictions", stated Bana.
"One of these interministerial ordinances establishes that the Secretariat of Prizes and Betting of the Ministry of Finance is responsible for authorizing the commercial exploitation of fixed-odds betting", she added.
According to the expert, there is another ordinance that details the rules and conditions for private economic agents to obtain authorization to commercially exploit fixed-odds betting throughout Brazil.
"These measures are essential to create a safe and controlled environment for sports betting, protecting operators and bettors", she said. "With these regulations in force, it is possible to create campaigns that encourage responsible and recreational gaming, minimizing the risks of addiction", she emphasized.
Source: Correio Braziliense
The United Lotteries for Integrity in Sports (ULIS) announces that CAIXA Loterias is joining the association as an individual member following the approval of the ULIS Executive Committee. This new partnership underscores a shared commitment to maintaining integrity and transparency in the newly regulated Brazilian betting market.
Founded in 1861, CAIXA has played a key role in the development of Brazil. The recent transfer of the Federal Lottery business to CAIXA Loterias in April 2024 marks a significant focus on modernizing and diversifying Brazil's lottery and betting market.
As a member of ULIS, CAIXA Loterias aims to create a safe and honest environment for local consumers, aligning with international standards of sports integrity.
Lucíola Vasconcelos, president of CAIXA Loterias, reinforced the relevance of the new association, stating: "This partnership with ULIS is an important milestone that reinforces our pursuit of the highest standards of integrity in our operations. We are looking forward to working closely with ULIS and its members to promote a safe and equitable environment for sports fans around the world".
CAIXA Loterias does more than fuel dreams; it drives significant social contributions through its lottery operations. Notably, 48% of the revenue from the Federal Lotteries is directed to legally stipulated beneficiaries.
Gilles Maillet, president of ULIS, highlighted the strategic importance of this partnership, noting: "CAIXA Loterias is a major player in the Latin American lottery market. Its strong commitment to responsible gaming and integrity policy is vital to our collective efforts to increase transparency and ethical practices within the global sports community".
CAIXA joins an important network of sports betting operators that share the same values. Their common resources and expertise are set to contribute significantly to global efforts in the field of sports integrity for a more transparent and fair sports environment.
The United Lotteries for Integrity in Sports (ULIS) is the collective monitoring system of state lotteries in sports betting. It aims to detect and analyze suspicious betting activities that may question the integrity of a sports competition.
ULIS facilitates the sharing of information about sports betting as part of the collective efforts of its members to ensure global sports integrity. It is dedicated to effective cooperation with all major stakeholders, namely regulators, law enforcement, and sports organizations.
Source: GMB
The Senate's Sports Commission (CEsp) may vote on Wednesday (4) on Bill 6.118/2023, which allocates resources from lottery revenue to electronic sports. Authored by Senator Izalci Lucas, the PL has already passed through the Economic Affairs Committee (CAE) and may proceed to the Chamber of Deputies if approved by the senators.
The proposal amends Law 9.615, of 1998, to include the Brazilian Confederation of Games and Esports (CBGE) in the National Sports System, which aims to promote and enhance performance sports practices.
Additionally, it amends Law 13.756, of 2018, increasing from the current 4.36% to 4.40% the percentage of resources from numerical prognosis lotteries allocated to sports. This increase of 0.04 percentage points in revenue collection will be entirely directed to the CBGE.
Currently, other sports entities receive percentages collected by the lotteries such as the Brazilian Olympic Committee, which receives 1.73%; the Brazilian Paralympic Committee, with 0.96%; and the Brazilian Club Committee, which receives 0.46%.
The rapporteur of the project in the CEsp is Senator Rodrigo Cunha (Podemos-AL), who has not yet presented his report, but he also reported on the matter in the CAE, where he expressed support for Izalci Lucas's initiative (PL-DF).
Source: Senate Agency
