Minas Gerais Governor Mateus Simões announced BR32m ($6.27m) in state support for the three main football clubs in Belo Horizonte, following the betting ban's impact on their sponsorship revenue.
Atlético-MG and Cruzeiro will each receive BR15m, while América-MG will receive BR2m, with payments made immediately.
"Minas football is much bigger than betting. What the state can do right now isn't a bailout, but support for our major fanbases that would otherwise be immediately affected. Five teams will go through this support process,” Simões said.
“We'll open negotiations with Athletic and Uberlândia. For us, this is a matter of responsibility."
In exchange, state development company Codemge and state energy company Cemig will have their brands featured on the supported clubs' jerseys, with placement to be defined later.
The announcement followed a meeting at the Minas Gerais Development Bank (BDMG) in Belo Horizonte, attended by Simões, Atlético-MG shareholder Renato Salvador, Cruzeiro owner Pedro Lourenço and América coordinator Marcus Salum.
"We're calling on other Minas Gerais companies to join this effort to support our football. The amount we're offering is a third of what betting operators were putting into these clubs, so we don't want to replace that, but to set this first major example for companies," Simões said.
Minas Gerais has had a complicated relationship with betting
The state launched Brazil's first state-licensed sports betting platform through its lottery, Loteria do Estado de Minas Gerais, in 2023, but was also among the first states to restrict betting advertising.
Simões himself signed a decree earlier this year banning betting ads on state property, roads and leased stadiums. ANJL has since asked the Supreme Court to overturn those restrictions.
Separately, the Minas Gerais Public Prosecutor's Office has opened a civil inquiry into the lottery's bidding process, following allegations of irregularities.
Minas Gerais is Brazil's third-largest economy, with a GDP surpassing the national output of many independent countries