Brazilian club finances are on the line as Lula targets online sports betting

President Luiz Inácio Lula da Silva’s promise to ban online sports betting could hit Brazilian football clubs where it hurts: sponsorship revenue. The issue matters for high-risk payment firms because bets are no longer a side business in Brazil; they are built into club sponsorships, broadcast deals, stadium naming rights, and the wider commercial stack.

1. Since sports betting was liberalized in 2018, betting operators have become the biggest sponsor category in Brazilian football, appearing on club shirts, sponsoring tournaments and stadium names, and running ads with current and former stars including Neymar Jr., Vinícius Jr., and Ronaldo Nazário.
2. According to annual financial statements, direct sponsorships from betting companies accounted for 7.97% of Brazilian clubs’ revenue last year. The most exposed clubs are Corinthians, at 17.3% of revenue, and Flamengo, at 12.6%.
3. The dependence is slightly lower this year because the number of first-division clubs with betting companies as sponsors fell from 18 in 2025 to 13 in 2026.
4. Direct sponsorships this year total 977 million reais (191 million dollars or 165 million dollars), with 71.7% concentrated in five clubs: Flamengo ($52.6 million annually), Corinthians ($29.4 million), São Paulo ($22 million), Palmeiras ($19.6 million), and Santos ($13.7 million).
5. In a manifesto published last week, clubs defended the regulated betting market and warned that if Lula carries out his promise, “bets do not end; football does.” Lula dismissed that line at a rally ahead of the October 4 election, where he is seeking re-election.

Moisés Assayag, managing partner at business management consultancy Channel Associados, said the risk becomes concrete if any ban does not include a transition period. His point is blunt: Brazilian clubs are already operating with “dramatic” finances, so even a small revenue loss can widen existing deficits.