Brazil betting operators cut Série A master shirt deals after first year of regulated tax regime

Brazil’s betting operators reduced master shirt sponsorships in the 2026 Campeonato Brasileiro Série A to 13 clubs from 18 in 2025, a 28% drop, following the first full year under the country’s regulated betting regime, reports Valor.

Brazil formally regulated sports betting at the end of 2023. The year 2025 represented the first full year in which the new regulatory structure was fully applied. According to the Ministry of Finance, the market generated BRL 36.9 billion ($7.4 billion) in gross gaming revenue (GGR) in 2025. Federal tax collection reached BRL 4.5 billion (around $900 million), equivalent to 12% of GGR.

Direct taxation on operators is set to rise from 12% to 15% of GGR in 2028. A bill currently in Congress proposes an increase to 18%. When corporate income tax, social contributions, and municipal levies are included, total tax exposure could exceed 25% of GGR.

“The blanket has become shorter because a larger part is going to taxes, so there is less left for sponsorship,” said Andre Gelfi, president of the Instituto Brasileiro de Jogo Responsável. “The conditions have changed substantially [compared with the first boom of sponsorship contracts], so I think we are seeing this correction."

Market structure and profitability

Currently, 80 betting companies hold authorization to operate in Brazil. Industry estimates indicate that around 80% of operators are still loss-making.

Pietro Cardia Lorenzoni, partner at Betlaw and legal director of the Associação Nacional de Jogos e Loterias, said consolidation is already underway.

“It does not seem to me that the Brazilian market can sustain 80 large, economically and financially healthy companies,” he said. “Regulated operations bring challenges for these companies. The market is narrowing.”

Industry estimates also indicate that the unlicensed betting segment in Brazil is roughly the same size as the authorized market, adding competitive pressure during the adjustment to the regulated framework.

A total of 25.2 million individuals registered their CPF tax ID numbers on betting platforms, while operators recorded 100.7 million active accounts.

Reallocation of marketing budgets

Sportsbooks have revised marketing allocations, moving funds away from master sponsorships toward naming rights agreements, regional competitions, ambassadors, and television programs.

The shift follows a period of heavy concentration of betting brands on front-of-shirt deals across Brazil’s first division. Companies have also directed investment toward multi-use arenas and campaigns connected to the 2026 FIFA World Cup in the United States, Mexico, and Canada, along with other brand initiatives.

Guilherme Figueiredo, institutional relations director at Betano Brazil, said regulatory rules introduced in 2024 prohibited operators from using customer deposits that had not yet been wagered for advertising purposes. “When regulation arrives, sponsorship contracts begin to be adjusted to a more appropriate value, closer to reality,” he said.

Operators continue to view football sponsorship as strategically relevant, although costs have increased.

“Football has also become an extremely expensive asset, very focused on brand building, reputation, and credibility,” said Alexandre Fonseca, CEO of Superbet, which sponsors Fluminense FC and São Paulo FC. He added that brands may have to choose between World Cup visibility and domestic master sponsorships.

Diego Bittencourt, marketing director at Start Bet, said the decline in Serie A master deals does not necessarily indicate lower overall investment. “Often, the value of a master quota in an elite club can be redirected to naming rights for regional competitions, strategic ambassadors or TV programmes, which offer much greater exposure frequency and depth of content.”