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BRASILIA \u2013 Brazilian soccer teams are siding with sports betting companies to lobby against \u200ba government ban on gambling websites, a move industry officials say will strip clubs of access to multimillion-dollar sponsorship deals.<\/strong><\/p>\n The provisional \u200cmeasure, approved by Brazil\u2019s President Luiz Inacio Lula da Silva last Friday, includes an immediate ban on gamblers making new deposits and requires all sports betting websites and apps to be shut down in the country from October 6.<\/p>\n The clampdown \u2014 which prompted online betting companies in Europe to revise earnings guidance \u2014 comes amid an extremely tight presidential election campaign in Brazil, where Lula is \u200bseeking a fourth non-consecutive term in power. A Quaest poll released this week showed that 62% of Brazilians support restricting online betting in the \u200bcountry.<\/p>\n State soccer federations, including those of Sao Paulo and Rio de Janeiro, have signed a letter expressing \u201cenormous concern\u201d over the \u2060ban, describing it as \u201ca fatal blow to Brazilian soccer\u201d that would drive clubs into insolvency.<\/p>\n \u201cFans cannot foot this bill. If the regulated market ends, betting doesn\u2019t \u200bend. Soccer is what ends,\u201d the letter said.<\/p>\n While gambling sponsorship is a relatively recent source of income for Brazil\u2019s soccer teams, the move is expected \u200bto force management restructuring across many clubs because the financial blow will be hard to recover from in the short term, analysts and club representatives said.<\/p>\n \u201cIn the best moments in the history of Brazilian soccer, there were no betting sites,\u201d Lula said on Monday. \u201cThe clubs will have to figure it out.\u201d<\/p>\n A government meeting with soccer teams scheduled for Tuesday was postponed \u200band a new date has yet to be set. Support measures, such as a possible subsidized credit line, will only be considered once talks conclude, a \u200bperson at a ministry involved in the debate said, speaking on condition of anonymity.<\/p>\n FINANCING BY BETTING COMPANIES<\/strong><\/p>\n Teams in Brazil\u2019s top-flight Serie A league received 1 billion reais ($192 million) in \u200cdirect advertising \u2060revenue from online betting companies in 2025, up 67% from the previous year, according to a survey by consultancy Convocados and sports investment manager Outfield.<\/p>\n The amount represents nearly 10% of the clubs\u2019 total recurring revenue, said economist Cesar Grafietti, a sports management and finance consultant who led the study.<\/p>\n However, total losses will be even greater because related revenue sources \u2014 such as stadium advertising and broadcast rights fees \u2014 are also heavily financed by betting companies, he said.<\/p>\n \u201cA chain reaction begins: you are \u200bforced to sell players and prices \u200bstart to fall, players with contracts \u2060up for renewal may stay on lower salaries, and signings tend not to happen at the values we have been seeing,\u201d Grafietti said, adding that he expects clubs will recover financially in the medium term.<\/p>\n Revenue at Rio de Janeiro club \u200bFlamengo could fall by 400 million reais as a result of the ban, club president Luiz Eduardo Baptista told \u200breporters, adding that \u2060the hit would mean the team would not be able to honor commitments it has made for next year.<\/p>\n \u00a0<\/p>\n<\/div>\n