Betting Ban an Own Goal?
Flamengo Fans Take to the Streets as Government Rushes to Rescue Clubs
eyesonbrasil
Days before the first round of voting, the ban on sports betting has opened a rift between the Planalto Palace and Brazilian football.
The provisional measure (MP) signed by President Lula in São Paulo on September 25 had a stated goal: protecting the public from the harms of gambling. The side effect arrived quickly. The MP could wipe out one of the main revenue sources for at least 14 of the 20 clubs in Brazil’s top division.
Flamengo has a lot at stake. The club signed the largest sponsorship deal in Brazilian football with Betano, expected to bring in R$ 895 million through the end of 2028. Even before the MP, the club argued that companies licensed by the government had invested and signed contracts based on the law then in force.
Tensions rose when Lula, before signing the measure, responded to pressure from the teams at a campaign event, noting that clubs led by Corinthians and Flamengo were saying football would end without betting companies. On Sunday (27), groups of Flamengo fans protested against the president, carrying banners and chanting against his reelection.
On the other side, the government is trying to put out the fire with a R$ 20 billion aid package for the clubs. Lula’s opponents called the measure “electoral opportunism,” but avoided opposing the ban itself.
What fans can expect
The MP still needs to pass through Congress, and that is where the outcome will be decided. The aid package is still a proposal being prepared, with no details yet on how it would be distributed. The sponsorship revenue the clubs stand to lose, on the other hand, is concrete and will have to be replaced by other sources.
Can a vote save the club?
No presidential vote, on its own, fixes Flamengo’s finances. The club has other strong revenue streams, such as broadcasting rights, ticket sales, the Copa Libertadores and player transfers, and the MP must be voted on by lawmakers. A fan who wants to influence the outcome will have more impact by pressing candidates for the Chamber of Deputies and the Senate than by choosing a presidential candidate over the betting issue. It is also worth following what candidates actually propose on the topic, because most criticized the method, not the ban itself.
