Brazil’s Betting industry is facing one of its most significant regulatory challenges yet. Just over a year after the country launched its regulated online betting market in January 2025, the Brazilian Senate has advanced a sweeping bill that could effectively ban betting advertising across all major media channels — a move that threatens to carve a massive financial hole in the country’s top football division, Série A.
Bill PL 2.985/2023, championed by Senator Damares Alves of the Republicanos party, was fast-tracked through the Senate’s Science and Technology Committee (CCT) after being amended to introduce a near-total prohibition on gambling-related advertising. The legislation targets fixed-odds betting operators and proposes banning promotional content across television, radio, print media, digital platforms, and sports venues. Crucially, it would also put an end to sports club and event sponsorships — the lifeblood of Brazilian football’s commercial ecosystem.
The bill’s key provisions include a ban on betting advertisements during live sports broadcasts, the prohibition of celebrities, influencers, and active athletes appearing in gambling promotions, and a complete ban on print advertising. Only retired athletes who have been inactive for at least five years would be permitted to feature in betting-related content. Additionally, operators would be barred from sending unsolicited push notifications or promotional messages, and all advertising in stadiums and sports facilities would be prohibited.
Senator Alves has stated that the bill reflects the findings of last year’s Parliamentary Inquiry Commission (CPI), which examined the societal impact of Brazil’s transition to a regulated betting market. The commission linked gambling advertising to rising addiction risks and deteriorating mental health outcomes, arguing that unrestricted marketing was aggravating already vulnerable communities. Penalties for non-compliance are substantial — fines ranging from R$ 5 million to R$ 10 million, with the possibility of suspension or revocation of an operator’s license.
The financial implications for Brazilian football are alarming. A joint statement issued by dozens of top-flight clubs through Games Magazine Brazil warned that the sports sector could face an immediate annual revenue loss of up to R$ 1.6 billion if the bill becomes law. While the specific R$ 842 million figure cited in relation to Série A reflects the concentrated impact on top-division clubs — who have benefited most dramatically from the betting sponsorship boom — the broader damage to the football pyramid could extend well beyond that number.
The scale of betting’s infiltration into Brazilian football makes the potential blow even more acute. According to data from Jambo Sport Business, total spending on master shirt sponsorships in the Série A rocketed from R$ 496 million in 2023 to historic highs in 2025, driven almost entirely by betting operators competing aggressively for brand visibility. Individual deals underline just how lucrative these partnerships became: Corinthians signed a three-year deal with Esportes da Sorte worth R$ 309 million, Atlético-MG’s contract with H2Bet was valued at up to R$ 200 million over three years, and Botafogo’s partnership with VBet reached R$ 165 million across the same period.
Yet even before the bill advances further, signs of retreat are already visible. As of early 2026, only 12 of the 20 Série A clubs opened the season with a betting company as their master sponsor — a 33% decline compared to 2025, when all 18 first-division teams maintained such partnerships. Clubs including Grêmio, Internacional, Santos, Bahia, and Vasco da Gama began the season without a betting sponsor, scrambling to fill the commercial gap left by operators realigning their budgets towards World Cup broadcasting deals.
Opposition to the bill from industry stakeholders has been swift and pointed. The Brazilian Institute for Responsible Gaming (IBJR) warned that a blanket advertising ban risks undermining the very regulatory framework Brazil spent years constructing. According to the IBJR, approximately 50% of Brazil’s betting market is already controlled by unlicensed operators. Restricting the ability of licensed companies to communicate with consumers would not reduce gambling activity — it would simply redirect bettors towards offshore and unregulated platforms that operate without consumer protections, responsible gaming tools, or tax obligations.
“Advertising plays a fundamental role in helping bettors identify regulated companies that are supervised by the state and committed to responsible gaming, while separating them from clandestine operators that offer no consumer protections,” the IBJR stated. Industry analysts at H2 Gambling Capital project a 15–20% decline in legal operator revenue by 2026 if the restrictions take effect, further weakening a regulated market that is still in its infancy.
The timing compounds concerns. Brazil’s regulated betting market only came into force on January 1, 2025. Operators are simultaneously grappling with a phased tax increase signed by President Lula, which will raise gambling duties from 12% to 15% by 2028. Critics argue that layering advertising restrictions on top of rising tax burdens could inadvertently hand competitive advantages to the black market — precisely the outcome regulators sought to prevent through legalization in the first place.
Brazil’s trajectory diverges from the experience of more mature gambling markets. Countries like Spain and Italy initially imposed strict advertising bans, only to relax them after observing unintended consequences including illegal market growth and reduced tax revenues. The UK’s Premier League, by contrast, took a voluntary approach — agreeing to phase out front-of-shirt betting sponsorships from the 2026/27 season — preserving commercial relationships while addressing public concerns over visibility.
For Brazilian clubs, the challenge now is one of diversification. Michel Fauze Mattar, a professor at FIA Business School, noted that clubs must recalibrate: “Financial fair play requires clubs to integrate the generation of new revenue with efficient expense management. This process must be accompanied by greater financial discipline and cost control.” The introduction of Brazil’s new Financial Sustainability System (SSF) by the CBF adds further urgency, with debt-related penalties, including potential points deductions and relegation, scheduled to take effect from 2028.
The bill still requires approval from Brazil’s Chamber of Deputies before it can be enacted into law, meaning amendments remain possible. Industry groups and football clubs are expected to mount a significant lobbying effort in the lower house, potentially pushing for a middle-ground approach that introduces meaningful guardrails on advertising without imposing an outright ban.
The coming months will be decisive. As 2026 shapes up as a political battleground over the future of betting promotion in Brazil, the stakes extend far beyond commercial contracts and shirt sponsorships. The outcome will determine whether Brazil’s regulated betting market can sustain the growth trajectory that justified legalization in the first place — or whether an overcorrection in policy hands the advantage back to the very illegal operators that the entire framework was designed to displace.
