Brazilian clubs unite to defend betting market, warn restrictions will lead to "the end of football"

  /  autty

According to Globo Esporte, several major Brazilian clubs issued a joint statement on Thursday evening defending the country's regulated sports betting market and warning that potential government restrictions would mean "the end of Brazilian football."

As of press time, the statement had been published on the social media accounts of the São Paulo Football Federation (in conjunction with Palmeiras, Santos, and São Paulo clubs), the Rio de Janeiro Football Federation, and Botafogo, Flamengo, Fluminense, Vasco da Gama, and Cruzeiro.

The statement pointed out that "investments from authorized betting companies have become one of the main sources of income for the sports sector," and that these "funds have also benefited smaller teams, lower leagues, and events with less commercial exposure."

The statement also warned that changing the rules would not "make betting disappear," but instead might push bettors towards the illegal market.

The clubs argued that it is necessary to "combat illegal activities, strengthen regulation, and improve protection mechanisms, without jeopardizing a regulated market that the state itself has established." The statement concluded: "Fans cannot pay for this. If the regulated market is finished, betting will not be finished. What will be finished is football."

Since last week, club executives have been meeting to discuss countermeasures. Clubs in São Paulo have held meetings at the São Paulo Football Federation—which has also coordinated with other federations—to assess the current situation, including a bill by the São Paulo City Council aimed at restricting betting companies from advertising within the city.

According to Globo Esporte, a provisional measure bill has been prepared and approved, with an announcement planned for no later than next Tuesday. However, a faction within the government is trying to persuade President Lula da Silva to only prohibit specific online betting games, such as "slot machine games."

The stated reason is that betting has a significant impact on Brazilian families, particularly affecting vulnerable populations.

The text under consideration would repeal paragraph two of article three of Law No. 14,790, enacted in 2023, which regulates the Brazilian betting market. This clause currently includes virtual games within the scope of fixed-odds betting. Therefore, the provisional measure would not prohibit sports betting.

However, online casino games constitute the majority of revenue for betting operators—which could make it difficult for most operators to survive.

For football management, the direct consequence would be a reduction in sports investments by these companies. It is estimated that betting companies pay more than 1 billion reais annually in sponsorship fees to Brazilian Serie A clubs alone.

Read the full statement

The football community is closely following discussions about the Brazilian betting market and recognizes the challenges posed by its expansion. Its social impact, particularly on the most vulnerable populations, requires long-term attention from the government, businesses, and all relevant sectors.

Therefore, it is essential to improve protection, regulation, education, and prevention measures to mitigate risks and ensure a responsible market.

Brazil chose to address this challenge through regulation. Regulation establishes strict rules for companies authorized to operate in the country, and clear rules enable the state to supervise the market, hold offenders accountable, and combat illegal platform operations.

It should be emphasized that in recent years, investments from authorized betting companies have become one of the main sources of income for the sports sector. These investments have greatly promoted the development of Brazilian football, enabling it to dominate competitions such as the Copa Libertadores and Copa Sudamericana, and positioning Brazilian clubs among global leaders.

This support is not limited to the largest clubs. Funds have also benefited smaller teams, lower leagues, and events with less commercial exposure. For many such associations, especially those in inland regions, there is currently no other economic sector that can immediately replace this investment.

These revenues are crucial for maintaining administrative structures, training centers, staff, social programs, and sectors that cannot independently generate sufficient funds to sustain operations—such as women's football and the development of future talent. When revenues decline sharply, these are often the first investments threatened.

Therefore, rumors about a sudden change in the rules for the betting market have caused great concern among all clubs, football federations, and sports management bodies. A sudden regulatory change will weaken clubs' investment capacity and create imbalances domestically and internationally. Legally signed contracts, multi-year plans, and financial commitments are all made under the regulatory framework established by the state itself.

To address a market that already exists and operates illegally with billions of reais, the state established a regulated environment. Companies have been authorized, started paying taxes, and assumed obligations related to consumer protection, preventing underage gambling, combating abuse, and fighting money laundering and match-fixing. It is this regulation that has moved Brazil away from the top rankings in global match-fixing cases.

This approach is unsustainable. It will not make betting disappear. It will only push consumers to shift completely to illegal platforms, which do not pay taxes, do not comply with restrictions, do not offer protection tools, and do not cooperate with authorities.

The consequences extend beyond opening doors for illegal betting—they represent a fatal blow to Brazilian football, which could lead many clubs to bankruptcy. Not to mention the legal and professional uncertainties this measure would create, especially for contracts legally signed and plans made under the regulatory framework established by the state itself and approved by Congress.

The football community believes the appropriate approach is to combat illegal activities, strengthen regulation, and improve protection mechanisms, without jeopardizing a regulated market that the state itself has established.

The football community is willing to cooperate with the federal government, Congress, states, and municipal authorities to establish more effective mechanisms for education and public awareness.

Fans cannot pay for this.

If the regulated market is finished, betting will not be finished.

What will be finished is football."

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