The regulation of Bets (sports betting) in Brazil, scheduled for 2025, should significantly transform the sponsorship scenario for football clubs. This movement will bring a new dynamic to the market, affecting the million-dollar investments that have been the hallmark of recent seasons
The current influence of bookmakers on sponsorship
Many of these companies occupy the master position, displaying their brands in the most prominent place on athletes’ shirts.
This predominance is due, in part, to the high value of investments by betting companies, which have significantly exceeded those of brands in other sectors.
A clear example of this dynamic was the replacement of Galera.bet by Pixbet as sponsor of Corinthians in 2022, following a more advantageous financial proposal. However, these high investments are characterized by great volatility, which may change with regulation.
Expected impacts with betting regulation
With the introduction of new rules, betting companies are expected to face additional costs, such as paying for grants to operate. This should drive away less solid companies, reducing the number of competitors in the sports advertising market.
Sector analysts indicate that the outflow of money currently observed should decrease, making investments more sustainable and less volatile.
The Other side of the coin
The regulation of online betting in Brazil is a challenge, as the advancement of this type of game is much faster than the legislative process. Bets, or as they are known, sportsbooks, are associated, almost all of them, with football games, which is the main sport in several nations.
But the end of regularization in the country is coming to an end and regularized games are scheduled to start in January 2025.
Sportsbooks can generate billions of reais in taxes
But why is regulation so important? When regularizing an activity, the government can monitor and collect taxes. So, betting houses can generate billions of reais in revenue, in addition to creating jobs and new businesses.
Therefore, global corporations end up incorporating small companies in the online betting sector, attracted by the business potential of the Brazilian market.
According to the Statista data platform, online betting:
- They could generate up to US$45 billion in 2024
- The projection is to reach US$65.1 billion in 2029
- Annual business growth would be 7.4%
In Brazil, consultancies estimate that online betting totaled R$120 billion in 2023, with a projection of reaching R$150 billion in 2024, according to Ricardo Bianco Rosada.
The number of companies operating in the country is imprecise, varying between 200 and 1,200, depending on the source. Regulation will allow a number closer to reality, making the market more attractive for companies.
