In December 2018, the Federal Government signed Law 13.756 / 2018, authorizing the Ministry of Finance to develop rules for licensing the exploitation of fixed-odds sports betting in the country.
At first, it was anticipated that this legislation would come into force in 2019, but it was postponed. Its last move took place in February, before the COVID-19 pandemic paralyzed discussions on the agenda once again. The activity has already been included in the Federal Government's Investment Partnership Program.
“Today we live in a legal limbo where, on the one hand, there is a law that legalizes the sector, but, on the other, for it to be effective, it needs regulation. Therefore, we are stagnant,” explains lawyer Eduardo Carlezzo.
According to Fernando Rivas, CEO of Betsul, sports betting company that sponsors São Paulo, Grêmio, Atlético-MG, Ponte Preta and the Paulista Football Federation, Brazil may become one of the largest markets in the world in this sector when regulation takes effect.
“As soon as the fixed-odd betting is regulated, where most of the informal retail bets are channeled to the legal market, Brazil will certainly be among the three largest in the world. By having regulations at the federal level, the country will make a huge leap ahead of many others,” explains Rivas.
According to Bruno Maia, marketing executive and specialist in new technologies, this change in the market is also reflected in sports media.
“We can expect from this sector associations with media groups that have sport as an asset. We have entered a time when statistics have become entertainment. There is a generation that consumes football through video games and that handles data very well. These associations may generate incremental revenues for the media groups,” explains Maia.
Last month Corinthians announced the Galera Group as a new sponsor. The partnership should guarantee the club R$ 40 million (US$ 7.4m) over a period of five years. According to Corinthians, the company hosts and manages the entire betting platform remotely and outside of Brazil - the group has offices in Israel and Cyprus.
Flamengo's contract model with Sportsbet.io provides for a fixed annual amount and a variable one. Earlier this month, Santos and Casa de Apostas renewed their partnership until the end of the Brazilian Championship. The sponsor, who has been with the club since May 2019, displays his brand on the shoulder blade of the professional team's jersey.
Check out the Serie A clubs that have partnerships with bookmakers:
Atlético-MG – Betsul
Source: GMB / Raul Vitor - Estadão
