30 Brazilian clubs sign document in favor of regulating sports betting sites.

Bets I 12.11.24

By: Magno José

Brazil leads in sponsorships with betting companies among major leagues. — **Brazilian clubs release joint statement supporting betting law during Supreme Court public hearing. 19 of the 20 Serie A teams are present at the “Joint Declaration of Brazilian Clubs”.**

On Tuesday (12), the Supreme Federal Court held the second day of the public hearing on the impact of online betting on the Brazilian public. Present at the meeting in Brasília, André Sica, partner at the law firm CSMV Advogados, presented the “Joint Declaration of Brazilian Clubs” regarding the regulation of the segment in the country. The statement, which defends the project approved by the National Congress, was signed by 30 national football teams.

Cruzeiro, Fluminense, Botafogo, Palmeiras, Vasco da Gama, São Paulo, Corinthians, Atlético-MG, Internacional, Grêmio, Juventude, Cuiabá, Athletico-PR, Fortaleza, Bahia, Atlético-GO, Criciúma, Red Bull Bragantino, Vitória, América-MG, Ceará, Avaí, Ponte Preta, Guarani-SP, Joinville, Vila Nova-GO, Brusque, Paysandu, Hercílio Luz and Barra FC are the teams mentioned in the statement.

“I believe it was an extremely productive hearing. Football managed to play its part and show its point of view, as it understands that all regulation can be better, but prohibition is never the answer. Football managed to demonstrate a very strong mobilizing force. Through the space granted and the powers conferred by Fluminense, we managed to get the support of 30 Brazilian football clubs and issued a very strong statement, showing, in general terms, the sector's position,” explains André Sica, partner at the law firm CSMV Advogados.

Convened by Minister Luiz Fux, rapporteur of Direct Action of Unconstitutionality (ADI) 7721, the hearing addresses aspects related to the economy and mental health in the betting sector. The debate takes place due to a lawsuit filed by the National Confederation of Commerce of Goods, Services and Tourism (CNC).

According to Fux, the event aims to shed light on the impact of betting on the Brazilian public. For the debate, prominent figures in national politics, leading football clubs, companies in the sector, and lawyers specializing in sports betting have been invited.

Check out the full note:

Joint Declaration of Brazilian Clubs ADI 7721 – Law No. 14.790/2023

Since 2018, with the enactment of Law 13.756/2018, the Brazilian betting market has opened up, bringing a new dynamic to the sector. The entry of companies into this segment has not only generated significant revenue, but has also presented substantial challenges for the country's football clubs.

Over the years that followed, the State had an obligation to regulate the issue, and it failed to do so. As a result, it not only failed to assist clubs in dealing with this new phenomenon, but also refrained from providing the necessary protection to the consumer market, athletes, young people, and children in the face of this new sector.

Furthermore, the arrival of these companies without proper regulation brought significant additional challenges such as the circulation of revenue without appropriate taxation, cases of unmonitored match-fixing, and the misuse of club brands.

Law 14.790, enacted in December 2023, may be subject to improvements; however, it resulted in the fundamental and long-requested regulation of the betting market, bringing rights and obligations attributed to operators who intend to obtain licenses, allowing the State to have visibility regarding their operations, establishing rules to protect Brazilian bettors, and requiring the creation of mechanisms for education and preservation of the sport, safeguarding clubs and athletes against the complex situations faced by the misuse of the activity.

Furthermore, it is evident that the regulated environment also allows clubs to reap the positive aspects of the market, since it represents one of the largest sources of revenue for Brazilian football – whether through the sale of advertising space in stadiums or through obtaining sponsorships.

Currently, 75% of the clubs in the Brazilian Série A Championship — that is, 15 out of the 20 teams in the first division — have betting companies as their main sponsor. This financial flow offers a crucial alternative for clubs to invest in paying off debts and hiring players, contributing to the competitiveness of Brazilian football both in South America and on the global stage.

The potential declaration of unconstitutionality of the Betting Law, the subject of this hearing, will not extinguish the betting market. This market will continue to exist, as it did before December 31, 2023, and as it does in other parts of the world.

On the other hand, all the progress made in protecting consumers and vulnerable groups, in imposing obligations on licensed companies, in preserving and remunerating the use of club brands, and in preventing the co-opting of their athletes into criminal manipulation schemes will be extinguished. The revenue that fosters the growth of women's football, the training of thousands of children in grassroots academies across the country, and the driving force that propelled Brazilian football's dominance in South America will also be eliminated.

If Law 14.790 of 2023 has its effects suspended, the Clubs will: (i) lose a currently vital source of revenue; (ii) have their brands improperly exploited; (iii) suffer losses resulting from the breach of their already signed short- and medium-term contracts; and (iv) be alone in the fight against match-fixing.

For this reason, the Clubs reiterate their support for the regulation and maintenance of the validity of Law No. 13.790/2023, guaranteeing the financial health of Brazilian football and facing the challenges that this market imposes.

November 12th, 2024

This Declaration is jointly supported by: