.svg)
Famed Brazilian football club Flamengo, which boasts one of the country’s largest fan bases, has presented a plan to its board of directors to partner with primary sponsor Pixbet to create its own “Flabet” betting site, in an apparent challenge to a prohibition included in Brazil’s betting law.
According to reports, the Flabet brand would offer bets on all teams and sports in addition to other online games, and not just wagers on Flamengo.
Under the potential deal with Pixbet that was presented to the board, Flamengo is reportedly guaranteed to make at least R$82.5m ($14.6m) as a result of the venture.
The move is largely unprecedented not just within Brazil, but across the global betting market.
In some U.S. states, licences are reserved for professional sports organisations and operators need to partner with a team in order to participate in the market. However, in these cases, operators are still using their own brand, and not that of their partner.
Flamengo would also be the first Brazilian team to have its own branded platform.
Under the Brazilian federal law that governs sports betting, Law 14.790 from December 2023, operators that obtain a federal licence will be allowed to have three skins or brands per licence.
Pixbet is expected to apply for a federal licence and is already locally licensed as an operator of fixed-odds betting in the state of Rio de Janeiro, which is the home state of Rio-based Flamengo.
Still, at least one Brazilian lawyer believes the proposed arrangement should not be allowed.
Rafael Marchetti Marcondes, the legal director of Brazilian betting industry association IBJR, described the partnership as a “clear attempt to circumvent Brazilian law, which prohibits an operator from owning a football club”.
“This measure challenges the authority of the Brazilian regulator and, if allowed, creates a clear conflict of interest that jeopardises the integrity of football in Brazil. This precedent goes against what is observed in other jurisdictions,” he told Vixio GamblingCompliance.
Marchetti was referencing Article 7(2º) of Law 14.790, which reads: “The partner or controlling shareholder of a company operating fixed-odds betting... may not hold a direct or indirect stake in a football corporation or professional sports organisation, nor act as a director of a Brazilian sports team.”
“So far, no similar measures have been mentioned by any other club in Brazil,” Marchetti said. “However, this needs to be curbed so that this bad example does not inspire similar behaviour.”
