Brazil betting sponsor exits threaten 2027 Gaucho Championship revenue

The Rio Grande do Sul Football Federation (FGF) expects the withdrawal of betting companies from Brazil's regulated market to cause a financial crisis for the 2027 Gaucho Championship, the state football competition of Rio Grande do Sul. According to the federation's preliminary forecast, the loss of betting funds could cut revenues by 60%, affecting payments to clubs and services provided by the organisation.

FGF president Luciano Hocsman said the competition can go ahead without the betting operators, but that current commitments and benefits need to be reviewed because the operators are not sponsoring it, particularly for smaller clubs from the interior of the state. He said the contract was supported by the betting companies, which are now seeking to restructure their agreement with the federation's partner.

Hocsman said the federation itself will be affected, as it will be unable to cover some competition expenses and continue providing services to clubs. The impact falls directly on the amounts allocated to clubs, which in turn reduces the number of contracts the federation could exempt clubs from paying and its ability to cover the costs of club referees, he said.

The effects may also reach teams in the second division, Série A2. Without more resources, the FGF could consider fewer exemptions from competition fees and from sponsorships for broadcasts on its FFTV system, which the source says may further burden smaller federated teams that need additional support to keep operating.

Commercial contracts have grown in recent years, with betting sponsorships the main driver, and that growth explains the expected decline. A fuel station network held the competition's naming rights from 2016 to 2024, and a deal with betting brand Superbet followed for the 2026 season. The source reports that, comparing the final two seasons of the two contracts, the Gauchão Ipiranga naming-rights deal was worth 220% more than the Gauchão Superbet arrangement.

Broadcasting agreements also grew substantially. After the FGF signed a deal with sports marketing agency Brax, the television contract's value increased by 1000% between 2023 and 2026. Brax obtained broadcasting rights through sponsorship arrangements with betting companies and, at a later point, with a television channel. The package covered money, commercial goods, advertising boards and on-air promotions.

According to information on Brax's website, the agency also has ties with the Brazilian Football Confederation (CBF) and the South American Football Confederation (CONMEBOL) and with 12 other clubs in Brazil's top flight, including Grêmio, Internacional and Flamengo. The source says the expected 2027 revenue loss shows the wider economic effect of Brazil's betting regulations, with the absence of betting revenue potentially affecting the broadcasting deal, services to smaller clubs and funding of the competition, and requiring the FGF to rethink how it allocates resources for the upcoming championship.