Lula government seeks club talks to quell backlash after bet ban

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Coluna do Fla

·26 September 2026

Lula government seeks club talks to quell backlash after bet ban

Flamengo is one of the clubs on the front line against the ban on betting companies

The recent decision by the Federal Government to ban the operation of sports betting companies in Brazil sparked an outraged reaction from clubs such as Flamengo. Given the impact caused, the administration of President Luiz Inácio Lula da Silva is preparing a meeting for next week with team executives.

Thus, the intention of the government leadership is to hear from club representatives and assess the scale of the losses suffered. Then, discussing alternatives for economic assistance to those affected by the decree will also be part of it.

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The Government’s political strategy and the clubs’ outrage

The drastic measure comes at a delicate moment in the national political landscape. The ban on betting companies is seen as a government strategy aimed at the electoral scenario, at a time of heightened political tension against the opposition.

However, the negative backlash among sports executives raised alarm bells at the Planalto Palace. The move seeks to ease relations with sports entities on the eve of the elections, given that contracts with companies in the sector currently represent the largest source of sponsorship in Brazilian football.

The Provisional Measure affected the budget planning of the sports sector. The ban was publicly announced by Finance Minister Dario Durigan, alongside the President of the Republic and other members of the ministry.

Executives from several teams protested against the abrupt end of operations. Fluminense publicly defended the need for a gradual transition period for the market to adapt. On the other hand, Flamengo expressed enormous concern over the lack of immediate alternatives in the advertising market.

Flamengo’s strong stance and the billion-real risk

Brazil spent years discussing how to regulate sports betting. Congress approved it, the government regulated it, companies paid to operate legally in the country, made investments, and began complying with oversight, taxation, and consumer protection rules. You cannot create a rule, lead companies and institutions to take on commitments based on it, and then, from one day to the next, change the entire regulatory framework,” declared the board of the Rio club.

Concern at Gávea takes on dramatic proportions given the amounts at stake. Betano, Rubro-Negro’s main sponsor, has already informally notified the club of its intention to terminate the contractual relationship.

The current agreement guarantees payment of R$ 268.5 million per season, with the contract signed through the end of 2028. However, Luiz Eduardo Baptista, the Rubro-Negro president known as Bap, estimates that Mengão’s losses will exceed R$ 400 million.

Without this revenue, Flamengo is considering former partnerships, such as the Lubrax brand, to take over the main space on the kit. At the same time, teams from Série A and Série B of the Brasileirão are negotiating credit lines with BNDES in order to mitigate the damage to cash flow.

This article was translated into English by Artificial Intelligence. You can read the original version in 🇧🇷 here.