Betting sponsorships in football are commercial agreements in which betting companies pay clubs to display their brands in prominent locations, such as on players' jerseys. These contracts are often multimillion-dollar deals that help clubs finance their operations, including hiring athletes and investing in infrastructure.
The investment betting companies make in sporting events is substantial. In 2024, Flamengo announced Pixbet as its new main sponsor. The two-year deal will secure the club R$ 170 million (US$ 30.3m), or R$ 85 million (US$ 15.15m) per season. This is one of the largest sponsorship deals in Brazilian football, reflecting the growing importance of betting in club financing.
Another example is São Paulo, which will have Superbet as its main sponsor in 2024, with a three-year contract that will bring in R$ 52 million (US$ 9.26m) per season. Last year, Botafogo signed a two-year deal with Parimatch, which will pay R$ 27.5 million (US$ 4.9m) per season. Meanwhile, Cruzeiro signed a two-year contract with Betfair at the beginning of 2023, securing R$ 25 million (US$ 4.45m) annually. Fluminense’s contract renewal with Betano, in July 2022, is estimated at R$ 20 million (US$ 3.56m) per year until 2025.
Often used interchangeably, the terms "sports betting" and "online betting" refer to different categories of gambling. The first involves predicting the outcome of specific events. Betting companies, such as Pixbet, Superbet, and Betfair, offer odds and markets for a variety of sports, from football and basketball to less popular ones. Since the focus is on predicting the score, these sponsors are often associated with football clubs and other sports.
The term online betting, on the other hand, is broader and includes any form of gambling conducted on the internet, not limited to sporting events. This can encompass virtual casinos, roulette, and other forms of gambling. Online betting companies can therefore offer a diverse range of products, not just sports betting.
While sports betting and online betting are distinct, they are interconnected in the sense that many betting companies operate in both categories. For example, a company like Betfair might offer sports betting and also have a virtual casino platform. Sponsorships often focus on sports betting, especially when associated with high-visibility events such as football.
According to Emma Lindley, the international expansion director at Caf (a Brazilian facial recognition and identification startup), the Gambling Act of 2005 expanded the gambling legislation of the 1960s, introducing the UK Gambling Commission (UKGC) as a new regulatory authority and implementing an updated licensing system in the United Kingdom.
"The law focused on three main objectives: preventing criminal activity in gambling, ensuring that gambling is conducted fairly and transparently, and protecting children and vulnerable individuals from potential harm related to gambling," she explained in an interview with Correio.
"At the time, very few markets had regulated sports betting, and the UK did not have many examples worldwide to structure the new regulation. The main challenge was balancing the growth of the gambling sector, ensuring that regulations were stringent enough to prevent gambling-related harm, and that adequate tax revenue was defined without driving operators away," said the British executive.
When asked which lessons learned in the UK could be applied to the Brazilian context, Lindley emphasized that regulation will likely need to be adapted and may not be perfect the first time.
"It is important to stay attuned to the evolution of the sector and the functioning of regulations and be prepared to make necessary adjustments. Self-exclusion, match-fixing, affordability assessments, and advertising were important topics in the UK and have received additional focus since the introduction of the original regulation in 2005," she noted.
"Currently, casinos and betting companies sponsor football jerseys and other aspects of sporting events. Advertising is one of the areas that have been reviewed since the introduction of gambling regulation in the UK, and in 2023, the government concluded a consultation with the sector to review the extent of advertising across the industry," observed the director.
Regulation
Betting sponsorships have proven to be a vital source of revenue for many football clubs, helping cover expenses and fund operations. However, they also raise questions about the ethics and social impact of gambling. The influence of betting companies on football can lead to debates about balancing financial benefits with the social responsibilities associated with gambling.
As clubs continue to negotiate significant deals with betting companies, it is crucial to observe how these sponsorships affect the sport and society. Transparency and responsibility in the promotion and operation of betting will be essential to ensure that financial benefits do not come at the cost of harmful practices.
For Fátima Bana, a marketing and business executive and founder of Rent, the sports betting market in Brazil is on the rise, and regulating this sector is crucial to ensuring sustainable and responsible development.
"Recently, several ordinances have been published to guide the exploitation of fixed-odds betting (including sports betting and online gambling). Therefore, we are going to discuss how these regulations impact the sector and how marketing can be used positively to promote recreational gambling in a healthy way, avoiding excesses and addictions," Bana said.
"One of these interministerial ordinances establishes that the Prize and Betting Department of the Ministry of Finance is responsible for authorizing the commercial exploitation of fixed-odds betting," she added.
According to the expert, there is another ordinance that details the rules and conditions for private economic agents to obtain authorization to commercially exploit fixed-odds betting throughout Brazil.
"These measures are essential to creating a safe and controlled environment for sports betting, protecting both operators and bettors," she said. "With these regulations in place, it is possible to create campaigns that encourage responsible and recreational gambling, minimizing the risks of addiction," she emphasized.
Source: Correio Braziliense
