Brazil betting suspension prompts media cuts and club revenue losses
Regulation2 min read
Brazil’s betting suspension has been linked to media job cuts and the loss of sports programming, while the Brazilian Football Confederation estimates a R$420 million revenue drop by 2027. Twenty employees were laid off at Rádio Itatiaia, which reportedly lost about R$30 million; betting sponsors account for around R$1 billion, or 35%, of sponsorship revenue for 27 of the 40 teams in the country’s top two divisions.
Brazil’s suspension of sports betting and online gaming has reportedly led to media job cuts and cancelled programming. The Brazilian Football Confederation (CBF) estimates that the ban will reduce revenue by R$420m by 2027.
The financial impact is expected to grow in the coming years, according to the Brazilian Football Confederation. Betting firms are master sponsors for 27 of the 40 teams playing in the Brazilian men’s championship’s top two divisions. Together, the deals represent around R$1 billion, or 35% of the clubs’ sponsorship revenue.
Rádio Itatiaia laid off 20 employees in an effort to cut costs. The broadcaster reportedly lost about R$30m as a result of the government decree issued on 25 September. CNN has reportedly cut spending.
Band dropped Apito Final, a programme presented by former player Neto, prompting members of its team to leave. The broadcaster also surrendered its Saudi Championship broadcast rights in October. Canal GOAT began restructuring, cutting staff and asking to suspend broadcast agreements for three competitions. The agreements concerned the Scottish men’s league, as well as women’s competitions in the United States and England. The decisions followed a revenue decline after the betting ban, according to Folha de São Paulo.
In England, teams were given three years to adapt and end master sponsorship deals with betting companies. Clubs in the league agreed to take betting companies’ logos off shirt fronts, though the brands may still appear on sleeves.