Brazil’s Finance Ministry Defends Betting Ban as Football Warns of Sponsorship Losses

Brazil’s Finance Ministry has defended its controversial betting ban before the country’s Supreme Federal Court, despite acknowledging that the regulated market had improved player protection.

The ministry argued that licensing, taxation, and player protection measures had not done enough to prevent the wider social harms associated with gambling.

Its comments came during a hearing on Tuesday (November 3) that looked at whether last month’s betting ban was constitutional.

The Finance Ministry acknowledged that regulation had improved both enforcement against illegal operators and player protection.

However, it claimed that people were around R$62 billion ($11.3 billion) poorer from losing bets to gambling companies.

It also estimated that gambling reduced Brazil’s GDP by R$120 billion ($21.9 billion) to R$140 billion ($25.6 billion).

Government and Football Clubs Clash Over Ban

At the hearing, the Brazilian Football Confederation (CBF) warned that the ban could devastate football finances.

The CBF estimated that 27 of the 40 clubs in Brazil’s top two divisions had betting companies as their main sponsors. Those agreements were worth approximately R$1 billion ($183 million), representing 35% of their combined sponsorship revenue.

Flávio de Araújo Willeman, vice president of one of the country’s biggest football clubs, Flamengo, argued that clubs had built their finances around government-approved betting sponsorships.

“It was on this basis that Flamengo planned its financial structure for the years following the signing of the contracts,” he said.

He said Flamengo could lose R$430 million ($79 million) annually through sponsorship and broadcasting arrangements.

The Brazilian Olympic Committee also warned that funds from betting partnerships could account for approximately 20% of its 2027 budget.

Meanwhile, the Brazilian Institute for Responsible Gaming (IBJR), a trade body, questioned whether prohibition would tackle unlicensed gambling.

“I did not hear anyone here, all afternoon, say they will end illegal gambling. What I heard is that they want to end regulated gambling,” its representative said.

Justice Luiz Fux, who is overseeing the constitutional challenges, made no ruling at the hearing.

Casa de Apostas Resumes Operations After Court Ruling

Meanwhile, operator Casa de Apostas has resumed online casino operations in Brazil after securing a temporary exemption from the ban.

Federal appeals judge Adriana Pileggi ruled on November 3 that CDA Gaming, which operates the brand, could have its authorization restored.

The judge criticized the government’s decision to revoke licenses without compensation, describing it as “a genuine confiscation.”

She also said the measure disregarded “the constitutional principles of legal certainty, reasonableness and proportionality.”

Casa de Apostas subsequently reopened its online casino.

The decision follows a similar reprieve granted to Stake last month. However, Stake’s injunction was overturned within days, forcing the operator offline again.