Grêmio await fallout from Brazil betting ban after Pitaco deal | OneFootball

Grêmio will wait for developments after Brazil’s federal government announced a ban on betting, two days after the club unveiled Pitaco as main shirt sponsor.

The club said in a statement that it will assess the situation once the measure is published by the Government, adding that the scale of any impact on football revenues must still be gauged by clubs and sporting bodies nationwide.

The Pitaco deal runs for three years and is projected to be worth R$ 140 million to Grêmio. The contract contains protections for both parties in the event of termination, though it is not confirmed whether a break in the current context would trigger compensation.

Grêmio were among the clubs behind a manifesto titled O Fim do Futebol Brasileiro, arguing for the maintenance of betting in the country. Talks were led by CEO Alex Leitão, and companies from other sectors, including a vehicle manufacturer, had also shown interest.

The agreement was signed while President Lula had already signalled a prohibition on bets, and both club and company proceeded aware that restrictive measures could arrive. One reason given was to have the contract active for any transition rules, which so far have not materialised.

Any ban on betting and virtual games will be formalised by a presidential Provisional Measure. It must be approved within 120 days by the Chamber of Deputies and the Federal Senate to take effect as law. Lula is expected to send a separate bill setting penalties for exploiting, operating or promoting bets.

Source: Globo.com

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