Brazil’s Série A Sees Drop in Betting Sponsorships as Regulations Tighten

Betting companies have scaled back their involvement in sponsoring the top teams of Brazil’s Série A for the 2026 season, with only 13 teams featuring betting brands as primary shirt sponsors, compared to 18 in 2025. This shift comes amid increased regulatory measures and higher taxation, prompting sports betting firms to redirect their marketing budgets. This development is significant as it highlights the evolving landscape of the gambling sector in Brazil, where regulation is reshaping market dynamics.

The Brazilian government officially regulated its betting market at the end of 2023, following its legalization in 2018. This regulatory framework has led to increased taxes on betting operations, reducing the funds available for sponsorship and advertising. André Gelfi, President of the Brazilian Institute of Responsible Gaming (IBJR), noted that the increased tax burden has forced companies to reassess their spending strategies: “The conditions have changed substantially,” he stated, referring to adjustments in sponsorship contracts.

In 2025, Brazilian bettors generated gross gaming revenue (GGR) of R$36.9 billion, with the federal government collecting R$4.5 billion in taxes, equivalent to 12% of the GGR. While the market has expanded, it still faces challenges, including the presence of an unlicensed sector of comparable size to the licensed market. Currently, 80 operators hold licenses to operate in Brazil. Comparatively, the UK has 253 licensed betting firms, while Spain hosts 77.

Despite initial optimism, the economic pressures have led to 80% of betting firms operating at a loss. The government plans to increase direct taxation on GGR by 3% by 2028, potentially reaching 18% if congressional proposals gain approval. When combined with other taxes, the total burden could exceed 25% of GGR, straining operators further.

Pietro Cardia Lorenzoni, legal director of the National Association of Games and Lotteries (ANJL), commented on the challenges of sustaining 80 large, financially viable companies in Brazil. The market is reportedly narrowing as companies grapple with compliance and financial constraints. The decline in Série A sponsorships is seen as part of a broader strategy to reallocate resources. Alexandre Fonseca, CEO of Superbet, explained that while football remains a valuable branding asset, firms must choose between investing heavily in global events like the World Cup or domestic league sponsorships.

Guilherme Figueiredo, Betano’s institutional relations director in Brazil, observed that regulatory changes in 2024 restrict operators from using unwagered customer deposits to fund advertising. This has led to sponsorship contracts being adjusted to align better with market realities. Diego Bittencourt, marketing director at Start Bet, emphasized the strategic shift towards regional investments, ambassadors, and television programming as alternatives to costly master sponsorships.

As Brazil’s betting industry navigates heightened regulation and taxation, it is entering a phase of recalibration and careful investment. The adjustments in sponsorship strategies reflect a shift towards more sustainable and diversified marketing efforts. Moving forward, the focus will be on consolidating the market, with operators adapting to the evolving regulatory environment and seeking efficient ways to maintain their market presence.