Brazil: Flamengo Football Club accidentally launches betting platform

Garance Limouzy August 7, 2024

SiGMA news

In Brazil, , the well-known football club, accidentally launched its sports betting platform, Flabet. The platform was online for 48 hours before being abruptly taken down.

Flamengo’s accidental launch attracted fans and bettors who were able to deposit money before the platform was taken offline without notice. Flamengo and their partner, Pixbet, explained that the launch was due to a technical error during a testing phase.

Flabet project

Recently, Flamengo announced it was considering breaking away from traditional sponsorship deals to start its own betting platform, Flabet. The club planned to partner with sports betting operator Pixbet, which they currently work with in a traditional sponsorship capacity. Flabet would allow customers to wager on various teams and sports, not just Flamengo, similarly to other existing betting platforms. Flamengo was set to present the Flabet project proposal to the club’s board, for approval. However, it appears that the club and its sponsor proceeded to make the platform operational and ready to launch before the final decision was taken.

An uncertain future

Flabet’s fate is not solely in the hands of the board of directors. Brazil’s law bans sports betting operators from owning stakes in sports clubs to avoid conflicts of interest. The partnership between Flamengo and Pixbet is seen by some as a way to circumvent the law and ultimately poses a threat to sports integrity. Board members might be compelled to reject the project for this reason, or the regulator could potentially oppose it. Flamengo’s platform would be the first of its kind. The club’s board of directors will make a final decision this week. If approved, Flamengo stands to earn a minimum of R$82.5 million (nearly $15 million) over the next four years. Pixbet, which already has the Loterj (Rio de Janeiro Lottery) license to operate in the state, assured that the launch would occur only after obtaining all necessary authorisations.