Bap warns Flamengo face R$ 400 million hit as betting rules tighten | OneFootball

Flamengo president Luiz Eduardo Baptista, known as Bap, has warned of a major revenue hit if Brazil introduces tighter controls on online gambling, admitting the club has no alternative plan.

"It is very difficult, in the short term, for us to say what we can do, because it is a very drastic measure. I would be lying if I said we have a plan B for this. We do not. We never considered the possibility that existing contracts, based on an absolutely legal model, approved by the National Congress, with concessions issued officially, legally, could be eliminated, let us say, in a short period of time," he told Metrópoles, which has reported that a draft would ban virtual casinos, keep sports betting under stricter rules and curb advertising.

"So we are apprehensive about this possibility and we still do not have an alternative plan at all. What I can say is that Flamengo is a responsible club, it took on long-term commitments based on the legal contracts we signed with a betting company and, with regard to Flamengo, the impact next year, beyond the sponsorship, will be of the order of R$ 400 million in the club's revenues."

President Luiz Inácio Lula da Silva confirmed during a rally in Recife that he will sign the provisional measure on Friday, in São Paulo.

Clubs and sporting bodies are discussing ways to soften any rule changes, with many teams reliant on betting sponsors.

Flamengo’s main sponsor is Betano, under contract until the end of 2028, providing fixed revenue of R$ 268 million per season, the largest sponsorship in Brazilian football history. The company has informally raised the possibility of terminating the deal, though no official notice has been received.

Source: Coluna Do Fla

“Artificial intelligence was used to assist in creating this article based on reporting from the original source quoted.”