In the two years since the legalization of gambling in Brazil, there was a "gold rush" for football sponsorships, with operators flocking to spend money to secure exposure spots, and nearly all top league teams being "contracted" by gambling brands. However, before the new season kicks off, 6 out of the 20 top Brazilian teams still have no jersey gambling sponsorship, with several high-priced contracts terminated early, and the once fervor is cooling down. Behind this change are the multiple effects of tighter regulation, high taxes, and a rational return to the market, with relevant gambling sponsorship compliance cases and industry trend analysis available on the PASA official website.
Past Peak: Pile of High-Priced Contracts, Annual Sponsorships Exceed 1 Billion Reais
At the beginning of gambling legalization, Brazilian football sponsorships fell into an "arms race," with contract amounts reaching new highs:
Records continuously broken: In January 2024, VaideBet sponsored Corinthians with 370 million Reais (about 71.2 million USD), setting a record for Brazilian football sponsorship; just four months later, Pixbet's renewal contract with Flamengo soared to 470 million Reais (about 90.4 million USD), breaking the record again;
Very high sponsorship penetration: Last season, 19 out of 20 top league teams had gambling platforms as their main sponsors, with only Red Bull's RB Bragantino being an exception;
Overall scale is impressive: In 2025, top Brazilian teams garnered about 1 billion Reais in total income from gambling sponsorships, with leading operators like Betano also securing sponsorships for events like the Copa Libertadores and Copa America, fully penetrating the sports scene.
Signs of Decline: Contract Termination + Teams "Running Naked" Lead to Cooling
Starting in 2024, sponsorship enthusiasm began to show cracks, with a more apparent cooling trend:
Core Signs of Decline
Early termination of contracts: In June 2024, Corinthians' three-year contract with VaideBet was abruptly ended due to corruption rumors; in August 2025, Pixbet terminated Flamengo's high-priced sponsorship early due to financial issues, and Alfa Entertainment was also reported to have defaulted on team sponsorship fees;
Increasing number of teams "running naked": Before the 2026 season, 6 out of 20 top league teams had no gambling jersey sponsorship, and it was even harder for second-tier league teams to attract sponsorships, with many not finding partners until the latter half of the season, and sponsorship amounts significantly reduced.
Key Reasons Behind
Regulation squeezes the gray market: After gambling officially became regulated in January 2025, only 14 operators received full licenses, forcing many gray market players out, significantly reducing sponsorship competition;
Tax pressure increases: President Lula approved a gradual increase in GGR tax rates to 15% starting in 2028, with other taxes combined, licensed operators face an effective tax rate close to 50%, with politicians also proposing an additional 15% deposit tax, making marketing expenses a primary target for cuts;
Imbalanced return on investment: The global exposure of Brazilian leagues is far less than the Premier League, with sponsorships mostly being local strategies, yet they have to pay prices close to those of international events, overwhelming small and medium-sized operators;
Teams' high expectations: Operators like Pixbet previously inflated sponsorship prices, causing teams' expectations for sponsorship fees to skyrocket, with operators unwilling to "take over" subsequently.
New Industry Structure: Top Players Increase Investment + Small and Medium Players Contract, Sponsorships Shift to Diverse Sports
After the sponsorship boom subsided, the Brazilian gambling sponsorship market shows a trend of "polarization + diversification of scenarios":
Top players continue to increase investment: Market leader Betano took over Flamengo's sponsorship, investing 250 million Reais, which can be covered by just 13 days of operating income; such top companies use their substantial funds to consolidate their advantages and further widen the gap with competitors;
Small and medium players are forced to contract: Due to tax pressure and lack of funds, most small and medium operators reduce or even stop sports sponsorships, adopting a "save where possible" survival strategy;
Diversification into new scenes: Some operators start shifting to racing, UFC, American football, and other emerging popular sports in Brazil, which have a large audience base and lower sponsorship costs, becoming new marketing breakthroughs;
Teams seek new paths: Teams losing gambling sponsorships have to turn to other industries, although sponsorship amounts are significantly reduced, they gradually break away from dependence on the gambling industry.
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This article is from "PASA-Global iGaming Leader" gambling industry news channel:https://t.me/pasa_news
Original in-depth gambling channel:https://t.me/gamblingdeep
Free data reports: @pasa_research
PASA Matrix: @pasa002_bot
PASA official website: https://www.pasa.news
