Brazilian government measure bars betting firms and threatens club sponsorship income

Brazil's Provisional Measure 1,394/2026, issued by the government of President Luiz Inácio Lula da Silva, prohibits sports betting companies and has removed one of the largest revenue sources for Brazilian football clubs, according to a report. The measure affects 14 of the 20 Série A clubs that have betting houses as main sponsors and puts Botafogo's judicial recovery at risk, the report said. Clubs are seeking temporary agreements with other advertisers and awaiting a possible reversal of the measure by the National Congress or the Supreme Federal Court (STF).

Betting companies account for 34% of Série A clubs' marketing revenue, according to data from consultancy Sports Value cited in the report. Botafogo's contract with a betting house provides annual revenue of R$50m. According to Amir Somoggi, founder of Sports Value, betting houses spend between R$500m and R$600m more on advertising in total than companies from other sectors. Between 2023 and 2025, clubs' marketing revenue grew 95%, and without the betting resources the increase would have been only 25%, Somoggi said.

In a direct action of unconstitutionality filed with the STF, Botafogo argues that the measure also harms creditors with amounts to receive. "A supressão abrupta do patrocínio compromete a execução do plano de recuperação judicial, com reflexos sobre toda a coletividade de credores", the document says. The report identified Botafogo's case as the most serious.

Several clubs have signed temporary contracts with other advertisers to get through the coming months without breaking ties with the betting houses. Corinthians agreed with Shopee, Santos with Agibank and Flamengo with Lubrax. São Paulo and Fluminense chose to display the Superscore brand, keeping exposure for a business linked to their former sponsor. The strategy is to gain time until December, in the expectation that Congress rejects the measure or the STF accepts the clubs' arguments.

Dissatisfaction with the measure has reached the pitch. In the match between São Paulo and Vasco on Tuesday 17 October, the São Paulo club displayed the message "Proibir não é proteger" on its shirt. Flamengo president Luiz Eduardo Baptista, known as Bap, said in a recent interview: "Não teremos dinheiro para pagar o salário do Lucas Paquetá em janeiro com essa MP".

The article compares Brazil's measure with what England did. In 2023, clubs in the English top division chose to stop carrying betting firm advertisements on the front of their shirts starting with the 2026/2027 season, while keeping other sponsorship arrangements. Carlos Lima, who heads the Instituto Brasileiro de Jogo Responsável, described the English move as a successful case of regulatory evolution that allowed a three-year adaptation window. Brazil's measure, by contrast, set no comparable transition period for clubs to reorganise their budgets.