Brazil is preparing measures to tighten restrictions on the betting industry. This could spell the end of the lucrative sponsorship deals between football clubs and betting companies. What would be the impact? And how do other countries regulate betting sponsorships? Five questions and answers about what is at stake.

What is at stake?

The federal government moved earlier this month with a provisional measure aimed at banning online gambling, which could primarily target online casinos while leaving sports betting untouched. However, the measure is still under discussion and its final scope has yet to be decided.

President Luiz Inácio Lula da Silva has repeatedly criticised the addiction caused by online gambling and what he describes as its devastating impact on families.

“We are making decisions and, very soon, we will announce what we are going to do about this, because it is a disease, not a game. It is leading innocent people into addiction,” Lula said in a recent interview.

Meanwhile, the Senate’s Science and Technology Committee has already approved Bill 2,470/2026, which would further restrict advertising and sponsorship deals involving fixed-odds betting operators, known as bets, as well as online games.

Supporters of the bill argue that strengthening Brazil’s betting legislation is necessary to protect consumers’ mental health, while also imposing additional responsibilities on operators.

There are also initiatives at state level, including in São Paulo.

What would be the impact on Brazilian football?

A ban on betting sponsorships would have a major impact on clubs’ finances, as teams would no longer be allowed to have commercial agreements or other business ties with betting companies. This would include displaying betting brands on shirts and other team equipment.

The bill approved by the Senate committee explicitly bans sponsorship agreements and provides a 24-month transition period for existing contracts to be terminated or brought into compliance.

Currently, 13 of the 20 clubs in Brazil’s top flight have a betting company as their main shirt sponsor.

Brazilian clubs could collectively lose around R$1 billion in sponsorship revenue, equivalent to roughly 7% of their total income, according to estimates.

Flamengo, Corinthians, Palmeiras and São Paulo all have sponsorship agreements worth more than R$100 million a year with betting companies, although several other clubs also have significant deals with the sector.

How have the clubs reacted?

The proposed measures have triggered a strong reaction from Brazilian clubs, which face the prospect of losing a major source of revenue.

Several teams joined forces last week to issue a joint manifesto opposing a ban on betting in Brazil. The clubs warned of the potential “end of football” if the measures go ahead.

“Rumours about abrupt changes to the regulation of the betting market have caused enormous concern among clubs, federations and sports governing bodies. An abrupt change in the rules would reduce clubs’ ability to invest and create imbalances both inside and outside the country,” they said.

The statement acknowledges the social impact of the rapid expansion of betting in Brazil, particularly among “vulnerable” groups. However, the clubs defend the continuation of the regulated market, alongside stronger oversight and mechanisms to protect bettors.

“Fans cannot be made to pay the price. If the regulated market disappears, betting will not disappear. Football will,” the clubs concluded.

Among the clubs that signed the manifesto are Flamengo, Fluminense, Botafogo, Vasco da Gama, Santos, Palmeiras, São Paulo, Corinthians, Cruzeiro and Atlético-MG, as well as state football federations such as those of São Paulo and Rio de Janeiro.

What do betting companies say?

The final outcome of the initiatives remains uncertain. However, betting companies argue that tighter restrictions or a ban would lead to an expansion of the illegal market, with unlicensed operators that do not pay taxes in Brazil.

There is also resistance from broadcasters that show football matches, as they generate advertising revenue from betting companies and would also be affected by the proposed measures. Globo, for example, owns a betting company.

According to estimates from the National Association of Games and Lotteries (ANJL), restrictions could result in around R$9 billion in cuts to industry investment through to the end of the current licences in 2029, including spending on television advertising, influencers and sports sponsorships.

As a last resort, the industry could take legal action in an attempt to block the measures.

“We believe responsible advertising is part of the solution, not the problem. It helps consumers make informed choices, distinguishes legal operators from illegal ones and strengthens trust in the sector. Clear and proportionate rules are essential to protect the public and consolidate a safe and sustainable market,” said Marco Tulio Oliveira, CEO of Ana Gaming Brasil, the holding company behind 7K Bet, as quoted by Brazilian news outlet UOL.

How does it work in other countries?

Portugal does not have a ban on betting sponsorships, but an increasing number of European countries have introduced restrictions on advertising for online gambling and sports betting.

In Italy, the so-called Dignity Decree has banned gambling advertising since 2018. The restrictions cover television, radio, print, digital media, social networks and sporting events, as well as sponsorship agreements and references to betting operators on shirts, at clubs, stadiums and competitions.

Spain has adopted a more limited approach, restricting gambling advertising on television, radio and audiovisual services to the period between 1 a.m. and 5 a.m. It has also imposed restrictions on the presence of betting brands on team shirts and at sporting venues.

In the United Kingdom, the Premier League introduced a ban on betting companies appearing as front-of-shirt sponsors from the 2026-27 season. However, betting brands can still appear on shirt sleeves and training kits.