According to a publication by the website InfoMoney, the two betting houses confirmed that they have not yet applied for the license, risking not being able to continue their activities or run advertising, according to the Ministry of Finance's ordinances.
Betsat, Vitória's sponsor until 2026, stated that it expects to make the request, but did not explain how it will prevent the space occupied on the club's shirt from becoming empty.
In the case of Botafogo, Parimatch has a sponsorship contract until the end of 2024, which avoids the immediate risk of losing the master sponsor. After this period, the club could sign a contract with an authorized company.
Although both ‘Bets’ (as the operators are called in Brazil) may start the year without the necessary license to maintain their current sponsorship campaigns, only Vitória, at first, would be potentially impacted by a “hiatus” in the jersey, since Botafogo’s contract ends at the end of 2024.
One of the ordinances published by the Prizes and Betting Secretariat of the Ministry of Finance (SPA-MF) defines that betting houses that are not regularized are prohibited from advertising and publicity, which includes – in addition to commercial actions on television and the internet – advertising boards at matches and prints on team shirts.
The case of Vitória
At the beginning of 2024, Betsat signed a two-year contract to print Vitória’s jersey, after the Bahian club returned to the elite of Brazilian football. However, the house has not yet sent the request for authorization to the Ministry of Finance.
Betsat says it expects to make the request, but did not say what the alternative would be to avoid the current space it occupies on 'Leão da Barra''s shirt being left empty – since the contract with the club only ends in 2026.
“Even those on the list are not guaranteed to obtain the license, which is why we believe in the speed of the process, especially when very few operators will be analyzed by the responsible regulatory bodies,” said Betsat's country manager in Brazil, Thiago Vancellote.
“We are currently considering many possibilities. Some of them involve finding a local strategic partner to nationalize the brand management in Brazil,” he said.
It is not yet clear how the club intends to resolve the issue; Vitória said only that it is in line with Betsat's position.
The case of Botafogo
Botafogo and Parimatch have a sponsorship contract until the end of 2024, the clauses of which have been complied with normally since the signing. Initially, the club would not run the risk of its master sponsorship becoming vacant, given that the contract expires before January 2025. The club did not respond to how it would handle the possibility of a renewal with the bookmaker.
In a statement, Parimatch responded that “the regulations recently published, just a few weeks before the application deadline, required additional adjustments that had not been previously considered”. According to the company, this would have made it difficult to meet the August 20 deadline.
“Our extensive experience in operating in regulated markets around the world gives us confidence that we will soon complete the necessary adaptations,” said the bookmaker. “We are working to file our license application, ensuring that our operations are in full compliance as soon as possible.”
Possible exits
Executives from the betting sector guarantee that the Ministry has made a commitment to regularize for the start of activities in 2025 only with the bookmakers committed to the August 20 deadline. In recent years, 'Bets' have become the main sponsors of Brazilian football and have already signed more than R$560 million (US$ 99.5m) in contracts with Série A clubs.
According to statements by football and “Bets” directors, the main alternatives on the market for companies that did not apply within the deadline, but want to regularize their status to start operating in January 2025, are in the process of mergers and acquisitions.
According to the rules defined by the Ministry of Finance, each entity tax identification number (CNPJ) can only have one authorization, but has the right to operate with up to three different brands. This opens up two business prospects: whoever obtains the grant will be able to acquire an established brand that did not apply for authorization in time, while whoever applied within the deadline can put themselves up for sale using adherence to the deadline as a relevant element in the negotiation.
Source: InfoMoney
