Senate analyzes bill that could eliminate R$ 1 billion in sponsorships from football betting.
The Brazilian Federal Senate is analyzing a proposal that would ban advertising, sponsorship, and promotion of sports betting and online gambling in Brazil. The text is awaiting the appointment of a rapporteur in the Constitution and Justice Committee (CCJ). The Science and Technology Committee approved the measure in early March 2026.
Betting companies are warning of a possible financial collapse in Brazilian football if the proposal is approved. The discussion on the topic gained relevance after the regulation of the sector in January 2025, according to information gathered by Estadão , which has been closely following the developments of the measure and its potential impacts on clubs and companies in the segment.
Proposal modifies Sports Betting Law
Senator Damares Alves (Republicanos-DF) acted as rapporteur for the text that replaces the original bill by Senator Randolfe Rodrigues (PT-AP). The initiative establishes a ban on communication and advertising actions for fixed-odds betting throughout the country. In this type of betting, the prize has a value defined at the time the bet is placed.
The ban covers advertisements on radio, television, newspapers, magazines, and social media. Sponsorship of sporting events and clubs is prohibited. Indirect advertising, including the insertion of brands into television programs or sports broadcasts, would also be banned. The pre-installation of betting apps on cell phones, tablets, and smart TVs would also be prohibited.
Randolfe Rodrigues argues that the advertisements suggest "betting as a way of life and investment, inducing people who have never gambled to enter this market through the offer of bonuses."
Damares Alves defended the need to "impose clear limits on the commercial activities of betting houses." The senator links gambling addiction to the deterioration of mental health. "The proposal offers a legislative response proportionate to the seriousness of the problem diagnosed by the Federal Senate," she states.
The market generates billions and faces illegal competition.
Currently, 84 companies are authorized by the Brazilian government to operate legally in the sector. These companies represent 185 different brands. Two other companies, with six brands, have judicial authorization to operate.
The parallel market moved R$ 18,1 billion in the first half of 2025, according to a study by Yield Sec. The government failed to collect R$ 4,6 billion in taxes due to clandestine operations during the same period. Industry estimates indicate that illegal websites represent 49% of the Brazilian market.
The sector recorded gross revenue of R$ 37 billion in 2025. The Prizes and Betting Secretariat of the Ministry of Finance reports that 25 million Brazilians placed bets. Illegal betting houses moved approximately R$ 30 billion in the same period.
Flutter Brazil points out that the sector collected R$ 12 billion in taxes. The Central Bank indicates that Brazilians spent between R$ 20 billion and R$ 30 billion per month in 2025.
Serie A clubs could lose R$ 1 billion.
Betting companies invested over R$1,1 billion in the 20 clubs of Série A in 2025. Eighteen teams received sponsorship from betting companies as main partners . In 2026, the amounts decreased to around R$1 billion. Fourteen clubs currently maintain sponsorship from betting companies.
The Brazilian Institute for Responsible Gaming (IBJR) estimates that Serie A clubs receive, on average, 2,6 times more in sponsorship contracts with betting companies than they earn in sports prize money.
Six Serie A teams do not have partnerships with sports betting platforms. Coritiba, Internacional, Grêmio, Mirassol, Vasco, and Bahia are without betting sponsorship . The remaining 14 clubs in the first division maintain contracts with betting companies. Thirteen of them have betting as their main sponsor.
The sector was regulated in January 2025. Companies paid R$ 30 million for the license to operate legally. They then began paying taxes. The reduction in investments is related to the market adjustment caused by the regulation.
Industry representatives project that the number of authorized companies will be halved in the future. Some companies are expected to close down. Others are expected to sell their operations.
The sector disagrees with the proposal and warns of the risks.
Alex Fonseca, CEO of Superbet , sponsor of São Paulo and Fluminense, states: “Broadly restricting advertising by authorized companies weakens this differentiation from the illegal market and may compromise the effectiveness of the regulation itself.” He adds: “Any measure of this magnitude needs to consider its economic, institutional, and social impacts, preserving predictability and legal certainty, as well as market equilibrium.”
Diego Bittencourt, an executive at Startbet , believes that banning advertising would devastate 90% of the football industry. "It would be almost equivalent to a total ban on the market," he states. The measure could concentrate the sector in the hands of one or two giants, creating an environment close to a monopoly.
Flutter Brazil , in a statement, affirms: “Restricting communication from authorized companies can generate an undesirable practical effect, which is to limit those who comply with the law, while those who already operate outside of it will continue to do so.” The group advocates for “a balanced regulatory environment that does not penalize those who comply with the rules, ensures legal certainty, and effectively combats illegal activity.”
André Gelfi, director, advisor, and co-founder of IBJR, points out that betting platforms claim that the rules cannot change "while the game is in progress." This measure would generate "great legal uncertainty and drive investors away from the country." Gelfi assesses: "Without these resources, clubs would need to have an extraordinary sporting performance just to be able to maintain their planning and strategic management."
Bernardo Cavalcanti Freire, legal consultant for the National Association of Games and Lotteries and partner at the Betlaw firm , argues that changing the rules of the game at this time "would generate great legal uncertainty and drive investors away from the country." "Preventing advertising by the legalized company directly contributes to the growth of the clandestine market, which does not pay taxes, does not generate jobs, does not invest in national sport, and has no commitment to responsible gambling," he argues.
Guilherme Figueiredo, director of Betano , believes that " betting companies aren't going to leave football because our main business is sports. It's football." The executive predicts a reduction in investment amounts. The probability of betting companies continuing to sponsor club jerseys remains high. Companies need to be present when the game is happening.
The director of Betano believes that the annual amount of R$ 268,5 million paid by the company to Flamengo represents the maximum investment in sponsorship in Brazilian football. “Corinthians just renewed their contract for a higher amount. I even congratulated the marketing director , saying that he probably made the last big deal for a betting company,” the executive said. The statement refers to the new agreement Corinthians made with Esportes da Sorte. The annual contribution to the club jumped from R$ 103 million to R$ 150 million. “The trend is, yes, for a reduction because it's a matter of market adjustment.”
Darwin Filho, CEO of Esportes Gaming Brasil, owner of Esportes da Sorte, believes that a broad ban could have the unintended consequence of restricting communication for companies operating legally. “Formal sponsorship contracts, like those we have with Corinthians, Náutico, Ceará, and Ferroviária, are part of the clubs' medium- and long-term planning and support investments. The most effective approach is to combine responsible advertising, with objective criteria, and effective oversight against unauthorized platforms, preserving legal certainty and predictability for the market,” he says.
Reinaldo Carneiro Bastos, president of the São Paulo Football Federation (FPF), stated in a recent interview with Estadão that "it's difficult to escape betting ." Leila Pereira, president of Palmeiras, followed a similar line of reasoning when her companies stopped sponsoring the club to make way for Sportingbet as the main sponsor . The executive declared that betting companies pay "significant amounts."
Processing in Congress
Behind the scenes at the National Congress, there is an understanding that the bill is unlikely to move forward. Even if it is approved in the Senate, the Speaker of the House of Representatives, Hugo Motta, is not expected to schedule the matter for debate in the House.
There is no decision yet on who will be the rapporteur for the bill in the CCJ (Committee on Constitution, Justice and Citizenship). There is no timeline for when the proposal will be voted on in that committee.
Foreign betting groups established in highly regulated markets continue to be the main sponsors of Brazilian football. Betano , owned by the Greek group Kaizen Gaming , is responsible for the largest sponsorship in the history of national football. The company pays R$ 268 million annually to Flamengo.
Betting companies invest significant resources in football broadcasts on radio and television. They also allocate funds to federations, digital influencers, organized fan groups, and Carnival. These companies have acquired naming rights for stadiums and competitions. The Brazilian Championship, the country's main football league, is included.
Business owners in the sector, lawyers, and other representatives of betting companies unanimously disagree with the bill. If approved, the proposal would benefit illegal betting sites that currently make up a significant portion of the Brazilian market.
