In May 2024, the Rio de Janeiro State Lottery (Loterj) notified the football clubs Vasco, Botafogo and Fluminense. Therefore, the authority requested the immediate suspension of advertising campaigns linked to bookmakers that do not have a state license to operate.
This measure was taken based on a lawsuit filed by Loterj itself, which resulted in the blocking of more than 100 betting sites. Therefore, this blockade included large brands that operate in the sports sponsorship market.
The decision directly impacts the sponsorship contracts of Rio de Janeiro clubs in Series A of the Brazilian Championship. The only exception is Flamengo, sponsored by Pixbet, a bookmaker licensed by Loterj.
Advertising that could affect Vasco, Botafogo and Fluminense
Vasco, Botafogo and Fluminense have contracts with Betfair, Parimatch and Superbet, respectively. These clubs have been instructed to cease all advertising relating to these brands or risk facing sanctions.
Experts in sports law warn of the importance of integrity programs, such as “Know Your Partner” (KYP), which guides clubs and federations to carry out in-depth due diligence before signing contracts with companies in the betting sector.
Due diligence includes checking companies’ compliance with local laws and regulations, avoiding future legal problems and financial losses.
Fernanda Soares, a lawyer specializing in sports law, emphasizes that it is crucial for clubs to add contractual clauses that guarantee the maintenance of licenses by bookmakers, in addition to providing for the possibility of early termination in the event of loss of the license. This protects clubs from possible penalties and preserves their public image.
In other words, Loterj’s recent determination raises questions about the regulation of the betting sector in Brazil. Although the deadline for national regularization is in force until the end of 2024, the lack of alignment between the state and federal spheres creates a scenario of legal uncertainty for operators and sponsors.
Differences between licenses
In May 2024, the Ministry of Treasury established new rules. Therefore, companies have until December 31st to regularize themselves. The national license, issued by the Treasury, costs R$30 million and is valid for up to five years.
In the case of a state license, the deadline for accreditation is August 13th. In Rio de Janeiro, this authorization is issued by Loterj. The value is R$5 million, valid for five years.
