Brazil’s betting firms cut Série A shirt sponsorships after tax shake-up
Table of contents
- Betting operators hold master shirt sponsorships at 13 of 20 Série A clubs in 2026, down from 18 in 2025.
- Brazil’s regulated betting market generated approximately BRL 37 billion in GGR in 2025, with the 12% GGR levy producing BRL 4.5 billion in statutory federal allocations.
- Around 80% of Brazil’s approximately 70 to 80 authorized operators are estimated to still be operating at a loss.
Betting companies sponsoring Brazilian football’s top division have scaled back significantly in the 2026 Campeonato Brasileiro Série A season.
Only 13 of 20 clubs now carry a sportsbook as their master shirt sponsor, down from 18 in 2025 — a 28% decline, according to a report by Brazilian financial outlet Valor.
The pullback follows the first full year of Brazil’s regulated betting framework, which imposed new tax obligations and advertising restrictions on licensed operators. The reduction reflects a broader financial recalibration rather than a loss of interest in football partnerships.
Tax pressure reshapes budgets
Brazil formally regulated fixed-odds sports betting at the end of 2023, and 2025 marked the first complete year in which the new fiscal structure was applied.
According to the Secretariat of Prizes and Bets (SPA), connected to the Ministry of Finance, the market generated approximately BRL 37 billion in gross gaming revenue last year. The 12% GGR levy produced BRL 4.5 billion in statutory federal allocations earmarked for social programs and public purposes.
That figure represents only one component of the sector’s total fiscal contribution. When operator licensing fees of BRL 2.5 billion, inspection charges, corporate income tax, and social contributions are included, overall tax revenue exceeded BRL 9.9 billion in 2025, according to Federal Revenue Service data.
The direct tax rate on operators is set to rise from 12% to 15% of GGR by 2028. A separate bill in Congress proposes an increase to 18%. When corporate income tax, social contributions, and municipal levies are factored in, total tax exposure could surpass 25% of GGR.
Andre Gelfi, president of the Instituto Brasileiro de Jogo Responsável (IBJR), told Valor:
“The blanket has become shorter because a larger part is going to taxes, so there is less left for sponsorship. The conditions have changed substantially, so I think we are seeing this correction.”
A total of 25.2 million individuals registered their CPF tax identification numbers on betting platforms during 2025. Operators recorded 100.7 million active accounts across the licensed market.
Most operators remain unprofitable
The number of authorized operators in Brazil currently stands at approximately 70 to 80, encompassing both full and provisional licence holders. The SPA’s most recent published data referenced 79 licensed companies at the close of 2025, though some industry tallies have cited as many as 80.
Regardless of the precise count, industry estimates indicate that roughly 80% are still loss-making, raising questions about the long-term viability of the current licensing structure.
Pietro Cardia Lorenzoni, partner at Betlaw and legal director of the Associação Nacional de Jogos e Loterias (ANJL), told Valor:
“It does not seem to me that the Brazilian market can sustain 80 large, economically and financially healthy companies. Regulated operations bring challenges for these companies. The market is narrowing.”
Adding further pressure, industry estimates suggest the unlicensed betting segment in Brazil remains roughly the same size as the authorized market. That persistent grey market undermines channelization efforts and forces licensed operators to compete on two fronts — against each other and against unregulated rivals.
The size of the illegal market has prompted regulators to block more than 25,000 offshore websites in partnership with Brazil’s National Communications Agency (Anatel) and pursue enforcement actions through financial institutions.
Operators shift budgets toward new channels
Rather than abandoning sports marketing altogether, sportsbooks have reallocated funds from master shirt sponsorships toward naming rights deals, regional competitions, brand ambassadors, and television programming.
Several operators have also directed investment toward campaigns tied to the 2026 FIFA World Cup in the United States, Mexico, and Canada.
Guilherme Figueiredo, institutional relations director at Betano Brazil, pointed to advertising regulations introduced in 2024 that prohibited operators from using unwagered customer deposits for marketing purposes. Figueiredo told Valor:
“When regulation arrives, sponsorship contracts begin to be adjusted to a more appropriate value, closer to reality.”
Alexandre Fonseca, CEO of Superbet Brazil, which sponsors Fluminense FC and São Paulo FC, acknowledged the shift. He noted that football remains strategically important but has become an increasingly expensive asset. Fonseca said:
“Football has also become an extremely expensive asset, very focused on brand building, reputation, and credibility.”
He added that brands may face a choice between World Cup visibility and domestic master sponsorship commitments.
Diego Bittencourt, marketing director at Start Bet, offered a similar perspective in the same Valor report. He argued the decline in Série A master deals does not necessarily signal lower total investment.
Funds are being redirected toward regional naming rights and ambassador partnerships that offer broader exposure and deeper content engagement, he said.
What comes next for Brazil
The contraction in football shirt sponsorships signals a maturing market grappling with rising costs, regulatory tightening, and competitive pressure from unlicensed operators. For clubs that built budgets around record-setting betting partnerships, the adjustment may force a return to diversified commercial strategies.
Operators that survive the current consolidation phase stand to benefit from a smaller, more disciplined marketplace. However, the pace of tax escalation will remain a decisive factor. If the proposed 18% GGR rate gains traction in Congress, further pullbacks in marketing spend — and potentially further operator exits — are likely.
Brazil remains one of the world’s largest addressable betting markets. The question is no longer whether the opportunity exists but how many operators can sustain the economics of serving it under an increasingly demanding regulatory framework.
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About the author
Bianca Máthe
Bianca Mathe joined the iGaming industry in 2018 and has since built extensive experience across multiple verticals, working with international gaming organizations on editorial, marketing, and media strategy. She brings a strong understanding of the regulatory, commercial, and technological forces shaping the global iGaming sector.
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