Corinthians Secures Historic $370m Sponsorship Deal with VaideBet

Corinthians, a prominent football club not only in Brazil but also across South America, has made headlines with its groundbreaking R$370m sponsorship partnership with VaideBet. This monumental deal, set to last for the next three years, represents the most significant sponsorship in the history of Brazilian football.

The partnership between Corinthians and VaideBet comes at a pivotal moment, following the approval of Bill 3,626/2023, which will soon legalize sports betting in Brazil. This strategic move by VaideBet into football sponsorship positions them favorably as the sports betting market in Brazil prepares to take off.

Augusto Melo, Corinthians' president, expressed his delight, saying, "We are very happy to bring Corinthians the biggest sponsorship in the history of Brazilian football. We have always stressed that Corinthians has the biggest brand in South American football and one of the biggest in the world."

Andre Murilo, Chief Financial Officer of VaideBet, echoed Melo's enthusiasm, stating, "Sponsoring Corinthians is sponsoring not only one of the main institutions in Brazil but also a club with a very beautiful history and a fan base that is admittedly passionate, engaged, and unique. It is a historic milestone for VaideBet, which we planned for months and managed to achieve now."

This landmark deal for Corinthians underscores the growing excitement in Brazil surrounding sports betting, fueled by the approval of Bill 3,626/2023 and the impending regulation of the sports betting industry. With the bill signed into law and a new regulatory framework in place, Brazil is poised to embrace sports betting and igaming.

While President Luiz Inacio Lula da Silva ratified the regulatory framework, he vetoed an income tax exemption for customer earnings under R$2,112. Instead, personal net winnings will be subject to a 15% tax, with operators facing a 12% tax on gross gaming revenue, primarily allocated to sports development.

Looking ahead, Brazil is gearing up for the ministry of finance to publish regulatory guidelines for operators, with more than 130 businesses expressing interest in obtaining licenses. The journey to legalize gambling in Brazil has been marked by twists and turns, but with the final approval of Bill 3,626/2023, the country is now on the cusp of a new era in sports betting and igaming regulation.