Key facts
- Brazilian soccer teams are lobbying against President Luiz Inacio Lula da Silva's ban on online betting websites.
- The ban, effective October 6, prohibits new deposits and requires betting sites to shut down.
- Top-tier Serie A league teams received 1 billion reais ($192 million) in direct advertising revenue from betting companies in 2025.
- This revenue represents nearly 10% of the clubs' total recurring revenue.
- Flamengo's revenue could fall by 400 million reais due to the ban.
- Online betting firms have filed a challenge against the ban at Brazil's Supreme Federal Court.
Brazilian soccer teams are rallying behind sports betting companies to oppose a government ban on online gambling websites, arguing it will lead to severe financial repercussions for clubs. President Luiz Inacio Lula da Silva's administration enacted a provisional measure that immediately halts new deposits and mandates the shutdown of all sports betting sites and apps in Brazil by October 6.
This clampdown is expected to strip clubs of significant income from sponsorship deals. Top-tier Serie A league teams received 1 billion reais ($192 million) in direct advertising revenue from online betting companies in 2025, a 67% increase from the previous year, according to a survey by consultancy Convocados and sports investment manager Outfield. This figure represents nearly 10% of the clubs' total recurring revenue, with related income streams like stadium advertising and broadcast rights also heavily financed by these companies.
State soccer federations, including those of Sao Paulo and Rio de Janeiro, have voiced "enormous concern," describing the ban as "a fatal blow to Brazilian soccer" that could drive clubs into insolvency. Club representatives and analysts suggest that the financial impact will necessitate management restructuring and could lead to a forced sale of players, potentially driving down salaries and hindering new signings, though some anticipate medium-term recovery.
Rio de Janeiro club Flamengo's president, Luiz Eduardo Baptista, stated that the club's revenue could fall by 400 million reais, jeopardizing commitments for the upcoming year. Online betting firms have initiated legal action, challenging the ban's urgency and its immediate effect through a provisional measure at Brazil's Supreme Federal Court.
Despite the financial concerns, President Lula commented that "in the best moments in the history of Brazilian soccer, there were no betting sites," and that "the clubs will have to figure it out." A government meeting with soccer teams was postponed, with support measures like a subsidized credit line to be considered after further talks. Meanwhile, some companies, like pharmaceutical firm Cimed, see the ban as an opportunity to secure new advertising partnerships.