Illegal Betting Threatens Brazil’s Sports Sponsorship Boom, Warns Yield Sec CEO

The rapid growth of illegal bookmakers in Brazil could destabilize the country’s thriving sports sponsorship market, according to Ismail Vali, CEO of global gambling analytics platform Yield Sec.

In a recent market report, Yield Sec revealed that unlicensed operators now account for over half of Brazil’s online betting activity, representing a serious threat to the financial ecosystem supporting sports teams. According to the firm, during the first half of 2025 the country’s online gambling market generated around R$35.5 billion (US$6.5 billion) — with 51% of that total coming from illegal sources.

Vali warned that if the current trend continues, unregulated operators could control up to 74% of the market by the end of 2026, triggering a collapse in legitimate sponsorship revenue. “When illegal operators surpass 60% market share, existing sponsorships will start to vanish. At 75%, half of all sponsorship deals could disappear,” he said.

Brazil’s sports sector — particularly football — has become heavily dependent on betting sponsorships. Nearly every Serie A club now partners with a bookmaker, and around 90% of teams display betting logos on their jerseys. The record deal between Flamengo and Betano, worth R$268.5 million, reflects how deeply the industry is embedded in professional sports.

However, as illegal platforms continue to siphon revenue from licensed operators, the funds available for official sponsorships are shrinking. Yield Sec warns that this imbalance could eventually force regulated brands to reduce or terminate contracts with clubs, opening the door for unlicensed bookmakers to dominate the sponsorship space.

Beyond the financial implications, Vali emphasized that the rise of illegal betting threatens the integrity of sport itself, as these operators often avoid reporting suspicious activity and fail to comply with anti-money laundering requirements. “There’s no monitoring in illegal gambling,” he noted. “If corrupt players want to manipulate matches, they won’t use supervised platforms.”

The Brazilian government has already taken steps to curb this trend. In September, the Ministry of Finance, Anatel, and the National Association of Games and Lotteries (ANJL) signed a cooperation agreement aimed at detecting and blocking illegal gambling sites. Authorities are also investigating banks and fintechs that process payments for unlicensed operators.

Vali concluded by urging regulators to focus on enforcement rather than additional restrictions on compliant operators: “Get rid of the criminals — or they will monopolize your market.”