Palmeiras and Atletico Mineiro are facing legal scrutiny over whether they can feature betting sponsors during upcoming South American club finals in Uruguay and Colombia.
The question has arisen following a federal ban introduced by Brazilian President Luiz Inacio Lula da Silva on September 25, which prohibited the operation and promotion of fixed-odds betting across national territory.
Palmeiras are preparing to contest the Copa Libertadores final against Argentine side Estudiantes at the Estadio Centenario in Montevideo. Atletico Mineiro will face another Argentine club, Boca Juniors, in the Copa Sul-Americana final at the Estadio Metropolitano in Barranquilla.
Both showpiece fixtures take place outside Brazil, prompting legal debate over whether the two Brazilian finalists can sign temporary commercial agreements with bookmakers for matches played on foreign soil.
Boca Juniors Maracana controversy
The issue gained prominence after Boca Juniors wore the branding of Swedish betting company Betsson on their shirts during a Copa Sul-Americana semifinal match against Brazilian side Vasco da Gama at the Maracana in Rio de Janeiro.
The appearance of the betting brand on Brazilian soil violated the newly announced presidential decree, sparking criticism and regulatory scrutiny. Even so, sporting sanctions against Boca Juniors are not expected.
The episode highlighted an unresolved jurisdictional dilemma for Brazilian teams competing in continental tournaments. While foreign visitors have displayed gambling sponsors inside Brazil without facing sporting penalties, Brazilian clubs must determine whether they can display similar brands when traveling abroad.
Federal ban on betting advertising
Under the Provisional Measure announced by President Lula on September 25, Brazil ended the exploitation, offering, brokering, and advertising of fixed-odds betting nationwide. The ruling means betting companies are barred from conducting any form of publicity within the country.
Fixed-odds betting refers to wagers where the payout is determined at the moment the bet is placed. Over recent years, online betting platforms have become major commercial partners across Brazilian football, frequently serving as headline shirt sponsors for top-tier clubs.
The abrupt implementation of the ban has created immediate commercial complications for Brazilian teams seeking to maximize revenue during prestigious continental finals.
Conflicting legal opinions for finals abroad
Legal experts consulted by CNN Brasil offered conflicting interpretations regarding whether Brazilian clubs can legally wear betting sponsors outside national borders.
Marcelo Robalinho, a partner at law firm RA Law, told CNN Brasil that entering into such agreements would significantly increase the risk of punishment. Robalinho explained that while foreign jurisdictions such as Argentina do not prohibit Brazilian clubs from displaying betting brands, the Brazilian decree specifically forbids domestic clubs from entering into contracts with betting firms.
Robalinho added that even if a club argues that a sponsorship was a one-off deal concluded abroad, the risk of sanctions remains heightened. He also noted that shirt sponsorships cannot be confined to stadiums overseas, because the clubs, visiting supporters, and traveling media will inevitably distribute match images across digital and social media channels, thereby displaying prohibited advertising within Brazil.
Digital law specialist Luiz Augusto D'Urso took the opposing view, emphasizing that the presidential decree applies solely within Brazilian territory.
D'Urso argued that Brazilian teams could use uniforms carrying betting advertisements if the host country has no corresponding ban. He explained that teams playing abroad are bound by the legislation of that specific territory, whereas a legal violation occurs only when a match is played inside Brazil.
Continental finals in Uruguay and Colombia
The two matches represent South America's most prestigious annual club competitions. The Copa Libertadores is the continent's top-tier tournament, with the winners crowned champions of South America. The Copa Sul-Americana serves as the continent's secondary club championship.
Palmeiras, based in Sao Paulo, are traveling to Montevideo to play at the Estadio Centenario, the venue that staged the first World Cup final in 1930. Their opponents, Estudiantes, are based in La Plata, Argentina.
Belo Horizonte club Atletico Mineiro travel to northern Colombia to meet Boca Juniors, one of the most successful and supported clubs in South American football.
With the finals approaching, the legal debate leaves Brazilian clubs weighing potential commercial gains against the threat of regulatory penalties under the new federal decree.
