Brazil’s betting ban is affecting businesses beyond operators and football sponsorships, with cap and hat manufacturers in Caicó, Rio Grande do Norte, losing major orders intended for Carnival 2027.
This comes as other businesses are affected by the provisional ban.
Already manufactured stock with betting branding doesn’t fall under the advertising and sponsorship ban, as clarified by Brazil's Presidential Communications Secretariat.
A company, WRL Bonés, had expected to produce 300,000 caps for Esportes da Sorte over the coming months, generating BR2.1m ($390,000) in revenue.
The order would have involved approximately 200 workers, including company employees, outsourced production teams and small manufacturers.
“Many workers will be affected. It was an unexpected impact,” said Larissa Almeida, the company’s director, adding that WRL had no clients capable of replacing the lost order volume.
DF Bonés e Chapéus estimates it has lost about BR850,000 ($158,000) after an order for 200,000 caps and hats was cancelled. Production had been scheduled to begin in November, with around 50 small producers expected to contribute.
The company said it does not intend to lay off workers. Both manufacturers also supply Betnacional and Sportingbet, according to the report.
Carnival orders are particularly important to the sector because they traditionally help offset weaker sales during the rest of the year, and the cancelled contracts had offered a chance to improve finances.
Despite the economic effects, the prohibition remains popular: a survey has found that over 70% of Brazilians supported the ban, while 17% opposed it.
Before the ban, Brazil’s regulated market comprised 84 licensed betting operators, 193 active brands and about nine million monthly bettors
