In January 2024, the Brazilian Government moved to regulate its sports betting industry. While sports betting has been legal since 2018, the application of significant regulatory legislation to what had previously been a misdirected mess has turned what was a wild west into a gold rush.
The local sports betting industry is estimated by Brazil’s economy ministry to have handled $21 billion in transactions in 2023 and online gaming revenue in Brazil is projected to more than double over the next half-decade, and reach close to $9 billion by 2029 and, according to a 2023 report, the country represents the third-biggest sports betting market worldwide.
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This has naturally had significant knock-on effects for the country’s elite sports properties, which have reaped the benefits of skyrocketing investment into the sports betting industry through new commercial activity.
While the country’s motorsports industry, volleyball competition, basketball leagues, among others, are all free to derive revenue from the burgeoning industry, soccer is king in Brazil. As such, the country’s elite Serie A competition and accompanying Copa do Brasil knockout tournament, as well as the regional annual state championships (known as the Campeonatos Estaduais) have been plied with massive commercial investment from the sector.
Nowhere has this been more evident than in the cadre of betting brands that now adorn the front of shirts across the Serie A division, which itself is title sponsored by Betano. All but one team in the entire 20-team division has a betting brand as its primary front-of-shirt sponsor.
That sole team, Red Bull Bragantino, nonetheless, is partnered with betting brand Betfast, which has sleeve sponsorship placement on all of the club’s kits, ensuring that there remains no safe haven in the league from the deluge of sports betting advertisements.
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By GlobalDataThe development of the sports betting industry in Brazil has been to the benefit of the Serie A clubs, with the majority of the league’s most iconic sides, including the likes of Sao Paulo, Botafogo, Atletico Mineiro, Vasco da Gama, Corinthians, and more, having all secured club-record front-of-shirt sponsorships with various sports betting firms.
Conversely, the 2023 regulation of sports betting has now led to a society that is “sick” and “completely addicted to betting,” according to Brazilian senator Carlos Portinho.
“Football clubs are addicted to betting. Communication companies are addicted to betting, to advertising, to the money they receive from betting.”
Now, the country sits at an impasse. Portinha has led a Brazilian senate effort to restrict sports betting advertising, a move that has drawn the ire of clubs that could see their surging sponsorship revenues capped so soon after these record sponsorships became available.
The bill bans the running of betting advertisements during sports events, with ads limited to a time slot of between 7:30pm and midnight, while radio advertising will be restricted to two slots, between 9am and 11am, and between 5pm and 7:30pm.
In addition, the bill outlaws the promotion of betting within sports stadiums, except by the official betting sponsor of the home team or stadium, of which each team is only allowed one, meaning existing betting kit partnerships can stay, but additional deals cannot be brokered. Further still, the bill prohibits athletes, celebrities, and influencers from promoting betting.
The next stage for the bill is the country’s chamber of deputies, after which, if it passes, it will be presented to the Brazilian President Luiz Inacio Lula da Silva (Lula) for final approval.
A collection of Serie A teams called the bill “prohibition disguised as a limitation,” adding that, despite the fact it is not a blanket ban, it will “result in the financial collapse of the entire sports ecosystem—especially Brazilian football.”
The ubiquitous nature of sports betting marketing has also created a regulatory issue where there is increased scrutiny on match fixing and other gambling-related issues within the league is necessary to prevent the influence of sports betting operators from denigrating the Serie A’s on-field content.
In April, Brazilian soccer’s CBF governing body extended its exclusive partnership with Sportradar Integrity Services (SIS), a dedicated subsidiary of the international sports data intelligence and digital content service provider devoted to upholding integrity.
The CBF first partnered with Sportradar in 2017, and most recently renewed the deal in 2023. The firm, which also offers sports technology and betting services through its main unit, opened an office in São Paulo, Brazil, in late 2024 amid the sports betting boom.
Now, with the Brazilian senate likely to vote through advertising regulation, Sportradar’s managing director for Brazil, Sergio Floris, sits down with Sportcal (GlobalData Sport) to discuss the present and future of Brazil’s nascent sports betting sponsorship landscape.
Over the last two seasons, several Brazilian Serie A clubs have inked record shirt sponsorships with betting companies. What has driven this massive upshot in value?
The sharp rise in shirt sponsorship values from betting companies in Brazil’s Série A is a direct result of the booming sports betting industry and its transition toward formal regulation. The strong demand in the country has pushed operators to invest heavily in brand visibility, and club sponsorships provide a prime opportunity to connect with a passionate fan base.
Brazilian football’s continued dominance in continental competitions has also enhanced the global appeal of these sponsorships, further driving up their value. Additionally, with relatively few industries competing for front-of-shirt space at the same scale, betting companies have seized the opportunity to establish themselves as key partners.
At Sportradar, we see this evolving landscape as an opportunity to reinforce integrity, data-driven engagement, and innovation in the market. The opening of the Sao Paulo office enables Sportradar to strengthen its local presence, foster deeper relationships with clients, and better support the development of the regulated Brazilian sports betting market, which benefits the entire football chain.
Are these values sustainable long-term?
We believe that the growth and regulation of the sports betting industry, the global appeal of Brazilian football, and broader economic conditions point to continued long-term growth. Brazil is establishing a regulated market that offers a stable environment for operators, fostering investment.
We are confident that the market will keep growing, attracting more participants, and that betting companies will either maintain or increase their sponsorship investments to stay competitive. The success of Brazilian clubs, particularly in continental competitions, enhances their global visibility, making them highly attractive to sponsors seeking a wide audience.
Will the increasing regulation of the Brazilian sports betting industry help or hinder the sports betting sponsorship market in the long run?
A regulated market ensures stability, transparency, and consumer protection, which creates a more trustworthy environment for both operators and sponsors. This regulatory framework will likely encourage further investment from betting companies, as it mitigates risks and provides clearer guidelines for their operations.
While regulation may introduce some challenges, such as compliance costs, the long-term benefits of a structured market will far outweigh any short-term hurdles, creating a safer and more sustainable ecosystem for sponsorships.
Are there any challenger markets that could also vie for front-of-shirt space, or is the lack of opponents what makes betting sponsors so common?
We view Brazil's sports betting market as a highly promising and dynamic sector. The combination of increasing smartphone penetration, greater internet access, and the country’s deep-rooted passion for sports creates an ideal environment for this industry. Brazil’s large, young, and tech-savvy population offers immense potential for sports betting companies to thrive.
Furthermore, the Brazilian government’s efforts to establish a regulated environment for sports betting provide both security and stability for operators, which will help foster long-term investments.
With many new operators flooding the Brazilian market, does sports sponsorship legitimize these businesses, and are clubs in danger of agreeing to deals with firms that don’t have market longevity?
Any major company looking to expand globally will undoubtedly consider Brazil a priority. [However] every company, not only clubs, needs to carefully select sponsors who are committed to responsible gaming and to maintaining a healthy and sustainable market.
We are dedicated to upholding market integrity and encourage clubs to focus on lasting partnerships that align with these values. The regulation of sports betting in Brazil is crucial in this scenario.
Recently, Sportradar revealed that Brazil is no longer the world leader in the ranking of countries with the most suspicious matches. How does Sportradar view this progress, and what factors contributed to this result?
Integrity in sports has always been a core priority for us—we’ve been working on this front for a very, very long time. The seeds were planted years ago, and while there is still much to be done, we have already seen significant progress. This advancement reflects the efforts of the CBF, clubs, state federations, and sports betting operators, all of whom have been implementing measures to prevent and combat match-fixing.
Although we cannot say with certainty that the decline in cases is solely a result of these initiatives, they are undoubtedly a crucial step in the fight against match-fixing and have contributed to this positive trend. In Brazil, the enforcement of regulations is expected to create a more structured and transparent environment, further strengthening sports integrity.
What are Sportradar's plans for Brazil after regulation?
Brazil is a dynamic market, and it will become even bigger after regulation. We have already established a strong business foundation in the country and see immense growth opportunities, driven by its large population and the widespread popularity of sports, particularly football, an area in which we excel globally. Furthermore, our commitment to preserving the integrity of Brazilian sports underscores Sportradar’s broader mission to foster a responsible and sustainable industry operating within a regulated environment.
We have big plans for our operation in Brazil. The addition of iGaming services is a new arrow in Sportradar’s bow. More than 80% of our clients offer both sports betting and iGaming through their licenses. Building intelligence by leveraging all our tools and expanding into the iGaming space is a natural progression for us. We’re partnering with major companies to achieve this while also developing some of these solutions in-house.
How does Sportradar intend to continue its presence in Brazil moving forward?
In the last quarter of 2024, Sportradar signed a Technical Cooperation Agreement (ACT) with the Brazilian Ministry of Finance, through the Secretariat of Prizes and Betting, to collaborate on activities focused on safeguarding the integrity of the newly regulated sports betting and online gaming region. Sportradar’s Integrity Services will offer its expertise to the Secretariat, including reporting any suspicious incidents it may identify through its monitoring of the market, as well as providing strategic counsel to address these situations.
The partnership between Sportradar and the Ministry of Finance represents a major step forward in this fight, reinforcing monitoring and prevention efforts. By facilitating the exchange of crucial information, this cooperation enhances our ability to detect and address suspicious activity in the sports betting sector—an essential move toward ensuring a fair and sustainable market.
Additionally, we will continue closely monitoring the market for relevant local content, ensuring that we align with the interests of Brazilian sports fans. We have exciting agreements to be announced soon, reinforcing our commitment to delivering high-quality, localized offerings in this rapidly evolving landscape.
