In an interview with Sportcal (GlobalData Sport), Sportradar managing director for Brazil Sergio Floris explains how the sports betting market moves forward in the country.
Sportcal - 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?
Sergio Floris - 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.
Source: Sportcal
