São Paulo Clubs Unite Against Proposed Restrictions on Betting Advertising

The Brazilian elite football teams of São Paulo are meeting with betting firms for talks on reaction to plans to limit betting adverts in the city. On Friday, September 11, it took place in the headquarters of the São Paulo Football Federation (FPF), with the presence of representatives of Corinthians, Palmeiras, São Paulo, Santos and Juve de Mooca, as well as executives from the betting sector.

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The key worry is Bill 560/2025, which may be voted on at the São Paulo City Council as soon as next week, as reported by Poder360. According to Globo Esporte the sponsorship contracts between Corinthians, Palmeiras and São Paulo and betting companies are estimated to bring in about R$350 million a year.

Bill Would Restrict Betting Advertising at Events

The bill, by councilor João Jorge (MDB), would make it illegal to advertise betting operators at events inside the city of São Paulo. The proposed limitations would include advertising, like signs, banners and panels at sports venues, as well as other types of promotion.

Fines of up to R$50,000 may be issued for violations and organizers may also have their right to hold events suspended for up to 2 years. The proposal has already garnered positive comments from committees of the City Council and is moving closer to being heard by the entire council.

If the bill is to be sent to the City Council plenary for possible approval by the city’s mayor, Ricardo Nunes (MDB), it will require two votes.

Clubs Warn of Financial Impact

Restrictions on betting advertising may have a negative impact on the clubs’ revenue from sponsorships, the clubs are worried. The football clubs have developed into important commercial partners of the betting industry, notably through sponsorship deals related to kits and football games.

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If the restrictions prevent clubs from being able to negotiate or keep a partnership with the betting operator, the financial effects may be felt beyond the direct advertising opportunities. South American giants Corinthians, Palmeiras and São Paulo’s R$350m reported annual sponsorship income shows the value of the sector to the major clubs.

Competitive Imbalance Raises Concerns

Among the clubs, another point of concern is that a measure that is only applicable to the municipality of São Paulo could result in a competitive imbalance. Clubs in the city may end up generating less sponsorship revenue from betting than other clubs around Brazil.

The clubs say the geographical distinction might make it tougher to compete financially with other-state teams. With the Brazilian regulations for sports betting currently evolving on the micro level (municipal) and macro level (broad level), the disparity in regulation may become a more significant concern for sports organizations.

The event at the FPF is part of a broader discussion regarding the impact of betting advertising in Brazilian football, as the government advocates for more stringent regulations and clubs evaluate the possible financial repercussions on their operations and business agreements.

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Source: BNL Data