Nowadays it is very common to watch football matches and come across sports betting companies with large advertisements, whether they are on players' jerseys, on panels along the field or even during broadcasts. In recent days, the sports media reported the conclusion of the partnership agreement between Cuiabá and a sports betting house, drawing attention to the large number of Brazilian clubs that receive incentives from companies in this segment - even though these companies are awaiting regulation from the activity.
Since the publication of the Law that institutes fixed-odds betting, sports betting companies have sought to consolidate themselves through sponsorships - sometimes very high - to football clubs as an important part of marketing for brand recognition in Brazil. It is a preparation for when the regulation is put in place and the rules for the effective functioning of the market are in force. Thus, the companies will already be well known to the Brazilian betting public and, with the exposure of the brand, recognition will be much easier and more natural.
According to annual surveys by Ibope Repucom, the presence of the betting segment among the largest sponsors of football teams has been a trend since 2019. In the 2019 report “Map of Brazilian Championship Serie A club sponsors” (1), the sports betting sector reached 13 clubs sponsored by 8 brands in the segment. In the 2020-21 report (2), 11 companies in the sector sponsored the teams, being the 5th largest segment with more general sponsorship of football teams. The last report, from 2021 (3), highlights the trend indicated years ago: “We have seen some trends confirmed, such as: the Sports Betting segment becomes the leader in volume of brands and contracts in the master sponsorships in Serie A (...)”.
In the 2021 championship, Cuiabá, after moving up to first division, was the only team in the Brasileirão Serie A not to receive sponsorship from a sports betting company. Now in 2022, Palmeiras becomes the only Serie A football team without brand sponsorship in the segment, for not having continued the agreement of last year.
Thus, the so-called “sports betting houses” sponsor about 95% of the Serie A clubs - 19, of the 20 teams, have brands of companies in the segment stamped on the jerseys, ranging from master sponsorships to simpler ones, but always present.
The contracts signed between the betting operators and the clubs are confidential, so the figures are not so easy to obtain. The disclosed and speculated values vary, but represent significant amounts that credit important amounts to the teams.
The high representation of sports betting companies as sponsors of major Brazilian football clubs highlights the strength of this lottery modality, legally called fixed-odds betting, according to Law n. 13,756/2018.
To elucidate what fixed-odds betting, or sports lotteries, are, I return to an article by the same author, which explains: “sports lotteries are bets on real sports-themed events in which it is defined how much the bettor can win in case of a hit at the time of placing the bet. (...) The exact definition of how much the bettor will be able to receive if the prediction is correct is the characteristic of this game model” (4).
Companies in this segment are taking advantage of a regulatory gap. It turns out that since the publication of Law 13,756, of December 12, 2018, the exploitation of sports betting in Brazilian territory has been allowed. However, such legislation awaits regulation by the Ministry of Economy and since then it is being studied by the Secretariat of Evaluation, Planning, Energy and Lottery (SECAP).
One of the points that must be explored by the regulatory Decree are the limits for the communication, advertising and marketing actions of sports betting companies, which must “be guided by the best practices of social and corporate responsibility aimed at the exploitation of lotteries” (article 33 of the aforementioned Law).
Three Public Consultations were carried out on the regulations under construction by the Ministry of Economy. Also in 2019, the draft Decree made available by SECAP contained an entire chapter just to deal with advertising of the fixed-odds lottery modality. Requirements were established for advertisements and advertising messages that were against the principles of responsible gaming were prohibited.
The framework of best practices is guided by good faith, competitiveness and leaves the club free and open to receive and accept the proposal that best suits it, as well as establish its internal rules for such sponsorships, as in championships. Until the publication of the regulation on the subject, it is expected that the market will follow and, even if there is a very strict regulation on this point - which is not expected - the interest in the investment must remain.
Thinking logically, this incentive that bookmakers give to football clubs is natural, as it benefits both sides, increasing the visibility of operators and encouraging the national passion, football.
One should also think about the importance of consolidating the brand in a market that is still being created. With the expectation of the regulation, which should come out later this year, sports betting companies will have the opportunity to access a promising and very attractive market for players, who estimate a global growth of 11.5% each year, according to Globe survey (5).
Thus, it is expected that with the permission to operate legally in Brazilian territory, after the publication of the regulation, we will have important movement in the Brazilian economy and one of the indicators of great interest are the already consolidated sponsorships to clubs. It remains, then, to wait for the Ministry of Economy to comply with the deadline established for the regulation and that we have clear rules for operation. With a balanced and regulated market, we will have more companies investing in gamblers, clubs and consolidating themselves in Brazil.
Bárbara Teles
Lawyer of Rei do Pitaco and postgraduate in Law and Government Relations
(1) The 2019 report “Map of Brazilian Championship Serie A Club Sponsors” can be accessed here. (In Portuguese)
(2) The 2020-21 report can be accessed via this link. (In Portuguese)
(3) The 2021 report can be accessed here. (In Portuguese)
(4) Article “MP 1034/2021 as a way to quickly correct the sports lottery to finally have a fully active market” available on Estadão. (In Portuguese)
(5) The infographic about the sports betting market is available here. (In Portuguese)
