The sports betting industry in Chile has been hit hard by a recent Supreme Court ruling that declared almost all online betting operators in the country to be operating illegally. This decision has had far-reaching consequences, particularly for the Chilean soccer industry, as many teams have sponsorship agreements with sportsbooks.
In a unanimous decision, the Chilean Supreme Court ruling has had a significant impact on the soccer industry, as many of these operators were sponsors of local soccer teams and the main national championship. The only exception was the state-run gaming and lottery agency, La Polla Chilena de Beneficencia.
The two operators that have been hit the hardest by this ruling are Betsson and Betway. Betsson, a prominent player in the online betting industry, had invested heavily in Chilean soccer and was a major sponsor of the National Professional Football Association (ANFP). The company paid a substantial amount to secure its sponsorship, starting with $2.5 million and later increasing its contribution to $8 million. However, the Supreme Court ruling has forced the ANFP to sever its ties with Betsson.
Prior to this ruling, the ANFP had already been ordered to void any contracts that linked the association with Betsson within 30 business days. The ANFP had opposed this decision and hired a lawyer to appeal the order, but the Supreme Court’s ruling put an end to their efforts.
The ban on sports betting operators has had a cascading effect on local soccer teams, as virtually all of them had sponsorship agreements with these companies. One of the most notable teams affected is Boca Juniors, which had a sponsorship agreement with Betsson worth $7.5 million. Other teams, including Unión La Calera, Everton de Viña del Mar, Ñublense, Audax Italiano, and Coquimbo Unido, had sponsorship agreements with Betway. These teams have now been forced to terminate their contracts.
The sports betting ban in Chile has left many local soccer teams scrambling to find alternative sponsors. It is uncertain how long it will take for these teams to secure new sponsorship deals and whether they will be able to attract sponsors at the same level as the sports betting operators. The loss of sponsorship revenue will undoubtedly have an impact on the financial stability of these teams and their ability to invest in player development and infrastructure.
