“Banning does not mean protecting.” This controversial message, recently plastered across the jerseys of several Brazilian Série A teams, strikes at the heart of a fierce national debate following the September 25 ban on betting platforms. But how did Brazilian soccer become so inextricably tied to the gambling industry? More importantly, does this sudden ban genuinely threaten the sport’s financial survival — or is it the painful but necessary dawn of a new economic era?
The Rise of Betting: A Regulatory Void and Its Human Cost
To understand how betting companies gained such unprecedented power within the soccer community, we have to look back at how this market was first introduced in Brazil. The year was 2018. Then-President Michel Temer signed a bill legalizing fixed-odds sports betting, setting a two-year deadline, extendable by another two, to regulate the sector. However, the subsequent administration under Jair Bolsonaro failed to establish the necessary tax rules and oversight mechanisms.
It wasn’t until December 2023 that President Luiz Inácio Lula da Silva signed Law No. 14,790/2023, the “Betting Law,” finally creating a regulatory framework. Shortly after, the Ministry of Finance established the Secretariat of Prizes and Betting (SPA) to oversee the sector and review business applications.
During that critical seven-year regulatory gap, betting companies operated in the shadows of oversight. Experts interviewed by BBC News Brasil note that these platforms used aggressive marketing strategies to acquire consumers at any cost. Against this backdrop, online gambling addiction rapidly emerged as a public health crisis. According to the National Alcohol and Drug Survey (Lenad 3) by the Federal University of São Paulo (Unifesp), 7.3% of the population aged 14 and older already exhibited problematic
Adolescents, particularly those under 18 who are legally barred from gambling, and low-income populations are the most vulnerable to developing a gambling disorder, as classified by the International Classification of Diseases (ICD). Addicted bettors often struggle with denial, battling intense anxiety, shame, and guilt over their financial and emotional ruin. These feelings frequently lead to deceptive behavior and mounting debt.
The financial toll is staggering. Last year alone, Brazilians lost R$ 62.5 billion in net outflows, the difference between total deposits and winnings paid out, according to the third edition of the Brazilian States’ Fiscal Bulletin. State soccer federations recently issued a joint statement arguing that “fans cannot foot the bill” for the ban. Yet, looking at the data, it is clear that fans have already been footing the bill. But what does this dynamic look like from the clubs’ perspective?
Hooked on the Odds: Soccer’s Dangerous Financial Dependency
Sports betting companies have essentially bought their way into the heart of Brazilian soccer, sponsoring 14 of the 20 Série A clubs and pouring over R$ 1 billion into the league annually. This takeover began shortly after legalization, capitalizing on a moment when many clubs were drowning in debt and facing a sponsorship vacuum following the exit of traditional backers like BMG and the state-owned Caixa bank.
Betting operators quickly secured prime real estate: uniform fronts, stadium boards, broadcast ad slots, and even the naming rights to the national league itself. Economist Victor Silva, speaking to BBC News Brasil, explains that this widespread exposure helped normalize betting, bringing it directly into millions of Brazilian living rooms. Today, according to sports marketing consultancy Sports Value, gambling money accounts for roughly 36% of the total marketing revenue for top-tier clubs.
Yet, as the cash flowed in, financial stability remained a mirage. While ordinary Brazilians lost R$ 62.5 billion to betting apps last year, combined club debt soared to R$ 16 billion. Simultaneously, club spending skyrocketed to R$ 11.6 billion—a massive 30% increase in just one year, according to ESPN Brasil. The sport has morphed into a high-stakes advertising vehicle, with team finances indirectly built on the losses of everyday bettors.
This influx of gambling money has artificially sustained bloated club operations, leaving teams addicted to the industry and highly vulnerable to its sudden withdrawal. Amir Somoggi, director of Sports Value, told ESPN Brasil that the core issue is the sport’s deeply flawed financial structure, marked by historically inflated contracts and a glaring imbalance between revenue and spending.
Life After Betting: Reinventing the Beautiful Game
The provisional measure banning online betting took immediate effect, catching clubs and analysts off guard. Many are now panicking, wondering if any other industry can replace such a massive revenue stream. Yet, history tells a different story. Brazil’s oldest soccer club, Sport Club Rio Grande, is 126 years old, and the first national championship took place in 1937. Brazilian soccer didn’t just exist before betting companies arrived; it thrived.
In the early 2000s, electronics and healthcare giants led the sponsorship charge—LG sponsored São Paulo for nearly a decade, while Unimed enjoyed a 15-year partnership with Fluminense. In the 2010s, banks like Caixa became the financial engines of top-tier teams. Corporate Brazil has always been willing to invest in the sport. So why haven’t they stepped up now?
According to sports marketing expert Fabio Wolff, the problem lies with the clubs themselves. Teams have failed to prove to potential partners that they can generate tangible business value beyond mere brand exposure. Modern sponsors demand measurable returns and targeted brand activations, not just a logo on a shirt.
Other experts argue that the entire economic model requires a hard reset. Multimillion-real contracts have lost touch with both the reality of the game and the country’s economy. The rise of Sociedades Anônimas do Futebol (SAFs)—corporate structures turning clubs into for-profit entities—alongside massive investments in stadium expansions, training facilities, and foreign talent, has driven costs to unsustainable heights. In fact, Brazil’s Série A ranked ninth globally this year for its percentage of foreign players, according to Transfermarkt.
Congress now has 120 days to vote on the permanent ban. As that clock ticks, perhaps clubs should stop mourning the loss of gambling billions and start reflecting on why Brazil was affectionately crowned “the land of soccer” in the first place. Should the sport continue to rely on a business model that inflates salaries for benchwarmers, funded by an industry that profits off the financial ruin of the very families cheering in the stands?
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The article above was edited by Ana Julia Galhardo.
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