In recent years, the market for sports betting and online gaming has experienced exponential growth. With this, sponsorships from bets have become an important part of the financial landscape of football clubs in Brazil. These agreements not only provide a significant injection of money but also attract attention and visibility to the involved brands. Out of the 20 Serie A teams, 15 have a sportsbook as their main sponsor.
Football betting sponsorships are commercial agreements in which betting houses pay clubs to display their brands in prominent places, such as player shirts. These contracts are often multimillion-dollar and help clubs finance operations, including hiring athletes and investing in infrastructure.
The investment that betting companies make in sports events is high. In 2024, Flamengo announced Pixbet as its new main sponsor. The two-year agreement will guarantee the club R$ 170 million, or R$ 85 million per season. This is one of the largest sponsorship contracts in Brazilian football, reflecting the growing importance of betting in financing clubs.
Another example is São Paulo, which will have Superbet as its main sponsor in 2024, with a three-year contract that will yield R$ 52 million per season. Last year, Botafogo signed a two-year contract with Parimatch, which will pay R$ 27.5 million per season. Meanwhile, Cruzeiro signed a two-year contract with Betfair at the beginning of 2023, securing R$ 25 million annually. The renewal of Fluminense's contract with Betano, in July 2022, is estimated at R$ 20 million per year until 2025.
Often used interchangeably, the terms "sports betting" and "online betting" refer to different categories of gambling. The former involves predicting the outcome of specific events. Betting houses, such as Pixbet, Superbet, and Betfair, offer odds and markets for a variety of sports, from football and basketball to less popular ones. As the focus is on anticipating 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 sports events. This can encompass virtual casinos, roulettes, and other gambling games. Online betting houses can therefore offer a diverse range of products, not just limited to sports betting.
Although sports betting and online betting are distinct, they are interconnected in that many betting houses operate in both categories. For example, a company like Betfair may offer sports betting and also have a virtual casino platform. Sponsorships often focus on sports betting, especially when associated with high-visibility events like football.
According to the director of international expansion at Caf (a Brazilian facial biometrics and identification startup), Emma Lindley, the Gambling Act of 2005 expanded the gambling legislation from 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 harms in betting", she explained in an interview with Correio.
"At the time, very few markets had regulated sports betting and the United Kingdom did not have many examples worldwide to structure the new regulation. The main challenge was to balance the growth of the gambling sector, ensuring that the regulations were stringent enough to prevent harms related to this type of game and that adequate tax revenue was defined without driving away operators", said the British.
When asked about which lessons learned in the United Kingdom could be applied to the Brazilian context, Lindley highlighted that regulation is likely to need adaptation and will not be right 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 the necessary adjustments. Self-exclusion, match fixing, economic accessibility assessment, and advertising were important topics in the United Kingdom and received additional focus since the introduction of the original regulation in 2005", she pointed out.
"Currently, casinos and betting companies sponsor football shirts and other aspects in sports events. Advertising is one of the areas that have been reviewed since the introduction of gambling regulation in the United Kingdom, 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 house sponsorships have proven to be a vital source of revenue for many football clubs, helping to cover expenses and finance operations. However, they also raise questions about the ethics and social impact of betting. The influence of betting houses on football can lead to debates about the balance between financial benefits and the social responsibilities associated with gambling.
As clubs continue to negotiate significant deals with betting houses, it is crucial to observe how these sponsorships affect the sport and society. Transparency and accountability in the promotion and operation of betting will be essential to ensure that financial benefits do not come at the expense of harmful practices.
For the executive of marketing and business Fátima Bana, founder and leader at Rent, the market for sports betting in Brazil is on the rise, and regulating this sector is essential to ensure sustainable and responsible development.
"Recently, various ordinances have been published to guide the exploitation of fixed-odds betting (including sports betting and online games). Therefore, we will discuss how these regulations impact the sector and how marketing can be used positively to promote recreational gaming in a healthy way, avoiding excesses and addictions", stated Bana.
"One of these interministerial ordinances establishes that the Secretariat of Prizes and Betting 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 create a safe and controlled environment for sports betting, protecting operators and bettors", she said. "With these regulations in force, it is possible to create campaigns that encourage responsible and recreational gaming, minimizing the risks of addiction", she emphasized.
Source: Correio Braziliense
