Brazil’s proposed ban on sports betting advertising doesn’t sit well with professional soccer clubs. Teams expressed their opposition to the measure by sending a letter to the Senate, hoping to convince it not to include the ban in the final version of Brazil’s sports betting bill.

Under the ban, which is envisioned as a part of Brazil’s sports wagering legislation, operators will be unable to advertise across stadiums or sign sponsorship deals with teams. However, clubs argue that the ban would deprive them of a major revenue stream and may have an overall negative impact on the sector.

The soccer clubs’ letter was sent on November 10 and signed by a total of 33 teams. The letter outlines the organizations’ concerns about the measure. The signatories include many big local clubs.

Gambling sponsorships provide major sporting organizations with important funding that helps them maintain and expand their operations.

Brazil Sports Betting Continues to Get Delayed

Brazil’s proposed ban is a part of the country’s sports betting bill. The ban was added as a proposed amendment and has been actively promoted by Senator Eduardo Girão who argues that advertising exposes people to harm. Other proponents of the ban also say that the measure will help Brazil tackle problem gambling and mitigate gambling-related crime.

The Senate is now responsible for deciding whether the ban proposal should be sent to the Chamber of Deputies. The discussions may very well lead to further delays to Brazil’s already long overdue sports betting legislation.

While the country is already on the path to legalizing wagering on sports, regulatory matters continue to stall the launch of a regulated market. While there were hints that progress is being made, the latest developments imply that it would be at least a few more months before Brazilians can wager legally.

Speaking of advertisements, in late October, Brazil published a comprehensive set of requirements for operators, which include the regulation of advertising near schools and universities. Operators are also prohibited from implying that gambling can lead to personal success or improved financial conditions. In addition, companies must promote responsible play.

In the meantime, gambling taxes remain another contentious subject. Earlier this year, the IBJR spoke out against the latest sports betting tax proposals.

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Poker machine properties in Victoria seem to be exploiting the local laws to avoid taxes. As reported by The Guardian, venues have spent $184 million of gambling profits on themselves over the last financial year to get tax cut.

The clubs in question justified the money as a “community benefit.” For reference, Victoria allows clubs to reinvest 8.33% of their revenue into community initiatives to get a tax cut. However, clubs in Victoria would often label renovations and operating costs as community causes, thus getting tax cuts while using the money for their own good.

In the meantime, poker machine venues only spent $23,000 beyond what the law requires on gambling harm prevention measures and tools.

This scheme has evidently attracted some opposition, with opponents criticizing the clubs for exploiting the law and the state for not patching up the loophole. Hume City mayor Joseph Haweil went as far as alleging that the scheme is being rorted by the poker machine clubs. His critique echoes the words of Tim Costello in New South Wales, who has criticized a similar scheme in the neighboring state.

Victoria Is Introducing New Regulations

The aforementioned figures were just published by the Victorian regulator and show that clubs, in fact, spent only $13 million on actual community initiatives, such as gifts, sponsorships and donations. The rest of the $184 million the clubs spent on themselves to pay off operating costs.

Amid intense scrutiny, the Victorian government is currently working on some reforms and is tightening controls on casinos. Under a newly introduced bill, all gambling machines in all gambling properties (with the exception of Crown Casino) will have to shut down between 4 am and 10 am. The measure will come into effect from mid-2024.

In addition, the Australian state plans to introduce mandatory loss limits for daily poker machine losses, although this measure is still in development. The measure will likely force players to use a card to sign in and will help the state‘s crackdown on gambling-related fraud.

The reforms come in the wake of huge scandals involving Star Entertainment and Crown Resorts. Speaking of Crown, the casino and hospitality operator is currently trying to renegotiate its taxation terms with the State of New South Wales amid financial trouble.

At the same time, workers from the Crown Melbourne property are preparing to strike.

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Data from the Victorian Gambling and Casino Control Commission reveals Carlton as the top beneficiary of poker machine in the AFL, garnering $19.1m from its 290 machines at four different venues, averaging a return of $65,954 per machine.

Meanwhile, Richmond accrued $4.6m from 97 machines located at the Wantirna Club in Melbourne’s eastern side, resulting in an average of $47,573 per machine. St Kilda fetched $1.8m from its 83 machines at its Moorabbin venue.

Essendon stood out, collecting $14.7m from its 190 machines across two venues. Advocacy group, No Pokies at Essendon, pointed out this as the highest total since 2007.

No Pokies at Essendon President Mike Read said the club a lot of work to both on-field and off-field, and was extremely disappointed with their continued profiting off poker machines.

ALSO READ: BEST POKIES VENUES IN MELBOURNE

“In recent years we have seen AFL clubs rush to get out of the pokies business, recognising the immense social harm they cause,” Read said.

“Essendon, instead, points to the revenue that gaming machines provide the football club, as though yet another disappointing season on-field justifies the continued damage that the predatory machines inflict.”

The No Pokies at Essendon initiative is endorsed by Zoe Daniel, an independent MP and dedicated Bombers fan. Daniel voiced her concerns, saying football clubs shouldn’t be attempting to profit off fans via electronic gaming machines. s

An Essendon representative, however, defended the club’s reliance on pokies, noting, “In the aftermath of Covid, we still need the revenue from our gaming machines. Any major decisions regarding our future venues will undergo thorough scrutiny by the board.”

Interestingly, all four clubs — Richmond, St Kilda, Essendon, and Carlton — are affiliated with the Victorian Responsible Gambling Foundation’s Love the Game program, an initiative focusing on educating the youth about gambling risks.

Carol Bennet, CEO of the Alliance for Gambling Reform, challenged their association with the program given their substantial gambling earnings.

“If you’re profiting significantly from your poker machines, you can definitely be selective with your sponsors,” Bennet said.

Bennet suggested that if these clubs truly cared about their performance and community, they’d emulate teams like Collingwood, Melbourne, Geelong, and the Western Bulldogs who’ve abandoned pokies and secured seven premierships combined since doing so.

North Melbourne was notably the first Victorian AFL club to abandon pokies back in 2008. In 2022, Hawthorn followed suit, selling its two poker machine venues. Collingwood also exited the industry in 2018, with its former president, Eddie McGuire, terming it “a sound business move.”

Australia has some of the most stringent gambling laws in the world, with it one of the few countries yet to legalise online casinos, which has caused many millions of dollars to be sent to offshore gambling sites.

This means authorities have little idea about the money spent playing online pokies, with several notable AFL players in the past admitting they gambling heavily online during their careers.

Australia does have a legal sports betting industry, with the AFL one of the most popular wagering events at online bookmakers.

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Gambling addiction in Australia is recognized as a serious public health issue. With pokies available on every corner in bustling cities and easy access to online gambling, each month, hundreds of millions of dollars are lost to gambling. Amid the growing concerns about the negative impact of problem gambling, lawmakers in New South Wales and Victoria initiated changes to the gambling regulations that seek to protect consumers.

Now, the Victorian Gambling and Casino Control Commission (VGCCC), the regulatory body in charge of gambling in the state, announced new requirements impacting the deals between sports clubs and online gambling operators. The Commission urged sporting clubs that offer incentives for their members by teaming up with online wagering operators to discontinue such agreements.

The gambling watchdog said that it was able to identify some sporting clubs that have signed agreements with online betting operators offering different financial incentives for members that engage in gambling activities. Additionally, the Commission said that some sporting clubs benefit from different incentives that are determined by the spending of their clients.

“The VGCCC is aware that some online wagering providers are entering into sponsorship agreements with sporting clubs to induce their members to create accounts with the provider by linking financial incentives to each member of the club that signs up. Clubs are sometimes given additional incentives based on the spend by their members,“

reads a statement released by the VGCCC

Inducements Are in Breach of the Gambling Regulations

In its latest announcement, the VGCCC said that sporting clubs need to be really careful with gambling sponsorships and incentivizing members, especially considering that there are underage members. The commission urged sporting clubs to avoid such partnerships with gambling companies, claiming that they may result in harm to their members.

“The VGCCC demands wagering service providers cease promoting their products in this manner as they may be in breach of legislation by doing so, in addition to being inconsistent with their social license to minimize harm,“

added the VGCCC

It also demanded betting service providers stop promoting their services to sporting clubs in such a way. According to the VGCCC, online betting companies must adhere to the established regulations and follow the social rules that seek to minimize harm. Moreover, it said that online betting providers that offer “any credit, voucher, reward, or other benefit as an incentive to open an account or refer another person to open an account” are breaching Section 4.1.10 of the Gambling Regulation Act 2003.

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According to the deal, W88’s logo will feature on the front of shirts and other key locations. The two companies will continue to unite football and sports betting fans, bringing mutual benefits. However, the sponsorship also highlights rising concerns regarding gambling addiction as problem gaming rates increase among fans and athletes.

The Partnership Relies on Integrity and Mutual Trust

As Burnley FC’s official shirt sponsor, W88’s logo will prominently feature on the front side of the team’s jerseys. The operator’s branding will be visible on the male and female shirts and appear across the club’s Turf Moor stadium. Social media is another vital avenue of cooperation and will see W88’s logo feature across Burnley FC’s official channels.

This collaboration marks the beginning of a promising era for Burnley FC and W88 as they embark on a journey of collaboration, growth, and shared achievements. Burnley FC director Stuart Hunt noted that such a high-profile partnership would support the club’s efforts to excel in the Premier League, lauding the operator’s history of success.

W88 have established successful relationships with several Premier League clubs… and we have been impressed by their experience, knowledge, and proactive nature in this area.

Stuart Hunt, Burnley FC director

Burnley’s prior track record includes other high-profile collaborations with clubs like Fulham FC and Crystal Palace, giving the company an impressive track record. Selecting Burnley as their newest partner highlights the team’s outstanding potential and ability to foster a loyal fanbase. The deal should significantly benefit both parties, helping them excel in their respective fields.

Despite all the positives surrounding the recent collaboration, the rising prevalence of sports betting sponsorships across UK football draws attention to the growing concerns regarding the spread of problem gambling. Despite Premier League clubs agreeing to end front-of-shirt gambling sponsorships, the measure only launches in the 2026/27 season. 

As gambling addiction strikes the highest levels of the UK Football Leagues, it reveals the urgent need for legislative reforms and increased public awareness. The upcoming UK white paper should be a significant step in the right direction. However, public-facing organizations like football clubs should also take a stance despite the reduction in sponsorship funding.

Despite growing concerns and rising public disapproval of gambling sponsorships, many clubs still rely on such partnerships to remain competitive. The Premier League’s grace period should allow teams to find alternative revenue streams, breaking away from the social harms associated with gambling. In the meantime, clubs like Burnley FC can at least settle on partners with a proven track record and commitment to their customers’ well-being.

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