Pixbet once spared no expense to sign a record-breaking sponsorship deal with Brazil's largest football club, Flamengo, in an attempt to gain an early foothold in the Brazilian betting market after regulations were implemented. However, the contract ended prematurely, which the industry views as a failed attempt at over-expansion.
Earlier this month, Flamengo publicly announced the termination of its main sponsorship agreement with Pixbet, with widespread speculation that the reason behind this was Pixbet's failure to fulfill payment obligations on time. This contract, originally set for four years and valued at 470 million Brazilian Reais (approximately 87.1 million US dollars), was the highest amount in the history of Brazilian football sponsorships. This termination has also intensified market concerns about Pixbet's financial stability.
Since 2025, Pixbet's journey has not been smooth. Under Brazil's new regulatory system, the company has been repeatedly suspended and then had its operating license reinstated due to technical compliance issues. Now, competitor Betano has taken over as Flamengo's new main sponsor, with an annual sponsorship amount reported to be 250 million Brazilian Reais.
Ed Birkin, Managing Director of H2 Gambling Capital, revealed that in the first half of 2025, Pixbet's market share in Brazil was only 2%, with a net profit of 316 million Brazilian Reais. Its sponsorship of Flamengo cost 62.5 million Reais in six months, accounting for about 20% of the company's net gaming revenue (NGR). In contrast, market leader Betano's NGR during the same period was 3.5 billion Reais, with the cost of sponsoring Flamengo only accounting for 3.5% of its NGR.
Birkin further analyzed that Betano could recoup its annual sponsorship fees in just 13 days, whereas Pixbet, even if the sponsorship cost was halved, would still need 72 days to cover its operational expenses in Brazil. This significant disparity highlights Pixbet's reckless financial strategy.
Currently, the Brazilian betting market is mainly dominated by international brands such as Betano, Bet365, and Superbet, which together hold over 50% of the market share. They not only possess international resources but also actively recruit local talent to implement localization strategies, breaking the previous expectation that "local operators have an advantage."
As early as June, Christian Tirabassi, founder of Ficom Leisure, predicted that the Brazilian market would show a trend of "concentration at the top." H2 data shows that although Pixbet ranks 11th in the market with a 2% share, the other 150+ licensed brands have an average share of only about 0.1%. Against the backdrop of increased taxes and stricter advertising restrictions, many small and medium-sized operators face significant pressure.
Birkin compared the Brazilian market to the US market, noting that brands such as Betway and Unibet have exited the US market. He warned, "If the 11th largest operator is already struggling, then the situation for those ranked lower will only be more difficult."
Pixbet once collaborated with Flamengo to launch the betting sub-brand Flabet, aiming to deeply engage the club's fan base, but the brand's average market share was only 0.15%, failing to achieve the expected breakthrough. Birkin believes that this move overlooked broader market opportunities and also reflected the limitations of its strategic positioning.
Despite this, he still believes there is room for small and medium-sized enterprises in the Brazilian market, but they must strictly control costs and avoid blind expansion. "You can be smaller than Pixbet, but you must spend within your means—you can't spend 125 million Reais annually sponsoring Flamengo unless you can truly earn that much back."
