CBF bans clubs from signing sponsorship deals with unlicensed operators
October 21, 2024

CBF bans clubs from signing sponsorship deals with unlicensed operators

The Confederation of Brazilian Football (CBF) has imposed a ban on unlicensed betting sponsorship from 11 October, which will apply to all levels of Brazilian football.

Clubs and leagues have been ordered to end any sponsorship deals with betting operators that have not received licensing permits from the Secretariat of Prizes and Betting (SPA).

The CBF said the ban comes in the wake of a Finance Ministry order that “betting companies without authorization will be prohibited from advertising or carrying out commercial advertising, under penalty of the sanctions provided for in the current legislation and the sporting sanctions set out in the General Competition Rules (RGC)”.

The SPA closed the bookmaker licensing window on 31 September, during which it had granted 90 businesses and 195 brands the corresponding online gambling licenses.

However, the SPA permits have been challenged by operators such as Esportes da Sorte and VaideBet, who have not obtained licenses.

The ban will therefore affect five clubs in the Brazilian Serie A, including Gremio, Corinthians, Bahia and Palmeiras, which are currently sponsored by Esportes da Sorte.

Atlético Paranaense has already suspended its partnership with Esportes da Sorte, while the other four clubs are still maintaining their contracts.

Even though Esportes da Sorte has not obtained a betting license, it has obtained a state-level license issued by LOTERJ, the state lottery of Rio de Janeiro. However, the Attorney General’s Office has managed to suspend a previous regulation that allowed betting companies licensed by the Rio de Janeiro lottery to operate at the national level. As of October 5, online bookmakers holding a LOTERJ license are no longer allowed to operate nationwide.

Before the launch of betting licenses, the SPA will enter an enforcement period to stop all unlicensed online gaming operators with the new supervisory powers granted by SPA/MF Resolution No. 1.475/24.

Finance Minister Fernando Haddad has approved the SPA to conduct an audit of all unlicensed gaming activities, including media and sponsorship, to ensure the launch of the betting market.

While the licensing window has closed, the Finance Minister will allow further licensing opportunities for unauthorized companies after a 150-day waiting period during which operators must cease all gaming activities in Brazil.

 

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