The company is already a partner of the São Paulo-based club, but the current contract, valid until the end of the year, grants the right to display the brand on the women's team, as well as advertising boards, LEDs, and backdrops at the Allianz Parque.
The betting platform paid around R$ 20 million (US$ 4.02m) to become the main sponsor of Palmeiras' women's team jersey. In the coming months, the company's desire is to participate in the competition for spaces on the jersey of the men's team, as promised by President Leila Pereira.
"It has always been a club that has enchanted us, both for being a successful club and for having an engaged fanbase," says Darwin Filho, CEO of Esportes da Sorte to Estadão. Currently, the website sponsors three Serie A teams: Athletico-PR, Bahia, and Grêmio. The group is willing to feature on Palmeiras' jersey because it is a "club linked to success and victories," justifies Darwin.
"Being associated with Palmeiras is positive for any brand. At the right moment, we will express our interest. I believe we might have updates starting from next year," says the entrepreneur, who emphasizes the positive relationship with Leila. Crefisa and FAM, two of the companies owned by the official, have sponsored the green and white team since 2015.
With no adjustment or correction since the beginning of 2019, the contract with Crefisa and FAM brings in R$ 81 million (US$ 16.3m) annually for Palmeiras, a figure contested by fans and opposition council members, especially as rivals like Corinthians and Flamengo have secured better deals recently. Darwin avoids speculating on specific amounts, but his idea is, if successful in the competition, to pay Palmeiras more than what is offered to other teams sponsored by the betting platform.
"It's not a taboo to talk about it because we understand the importance of each of these teams. Today, Palmeiras is in the top 3 in Brazil for sponsorship. The values would be higher compared to what we pay today," admits the executive. "I believe we can indeed have something competitive and that does justice to the greatness of Palmeiras."
The exclusive contract of Leila's companies with Palmeiras means only FAM and Crefisa appear on the team's uniform, making it the only Serie A team with this sponsorship model. If things go as planned, Esportes da Sorte sees no problem in sharing spaces on the green and white team's jersey and commercial properties with other companies.
"We often have actions in synergy with partners from other segments. From our perspective, I don't see the need to exclusively showcase the brand," said the platform's director. "But I also do not rule out that possibility."
Betting regulation
Esportes da Sorte is one of the 134 companies that expressed interest to the Ministry of Finance in operating in the online sports betting market. The sector was regulated after Congress approved the law at the end of last year, establishing criteria for taxation and rules for the commercial exploitation of fixed-odds bets. The law defined the distribution of the revenue collected and imposed sanctions.
"The law inaugurates a new era. We are very pleased with what was approved because it protects the interests of the operator, as well as the consumer," considers Darwin. "This legislation is a milestone to be celebrated."
The rules are expected to come into effect at the end of this first semester, the deadline for the regulations to be completed. After that, to operate in the country, betting companies will have to meet a series of requirements determined by the Ministry of Finance, including having headquarters in Brazil and paying a grant of up to R$ 30 million (US$ 6.03m).
Once regulated, betting houses will no longer operate in a kind of regulatory limbo, as has been the case since 2018 when betting was legalized. Only companies authorized by the government will be able to sponsor players, football clubs, entities, and competitions or engage in any type of advertising.
Recently, the government created a secretariat for the supervision of sports betting and online games. The Secretary of Prizes and Bets will be responsible for regulating the fixed-odds market as well as lotteries and commercial promotions.
Darwin understands that the legislation will maximize job opportunities and has the potential to bring more credibility to the sector. The company claims to advocate for the idea of gambling as a form of entertainment.
Fewer betting houses in football
It is a consensus among experts and those operating in the sector that, with the regulated market, the number of betting houses will decrease, initiating a process contrary to the explosion of bets in football without clear rules for the sector. "Certainly, the number will decrease. This ends up being good for the consumer because they will truly be there with fewer brands, but more reliable brands."
However, his belief is that there won't be a mass exodus of companies that have invested money in elite Brazilian football clubs and have their brands displayed on the shirts of the country's top teams.
"I think that a good part of the companies that are currently in the clubs, especially those in Serie A, are companies that I see remaining in the regulated market," he says. "We will indeed see some movements, especially in the Serie B and C clubs, but I believe there is still an appetite in the market for those who will stay to absorb the properties that will be left over from those houses that won't comply with the regulation."
The director of Esportes da Sorte understands that advertising values will also be reduced. But he believes that, before that happens, investments will be boosted, and the amounts paid by companies to clubs will still reach their peak.
"I believe that in this initial pre-regulatory moment, at the beginning of regulation, maybe the price will stabilize or even rise a bit. But I believe that as soon as we reach the maturity of regulation, these prices will start to fall due to the natural market dynamics," he evaluates.
Responsible gaming
According to the Ministry of Finance, the market will be monitored to establish policies for responsible gaming, which involves measures, guidelines, and practices to prevent compulsive or pathological gambling, to prevent and not induce indebtedness, and to protect vulnerable individuals, especially minors.
Source: Estadão
