This Thursday, the 13th, the Brazilian Institute of Responsible Gaming (IBJR) published a manifesto addressed to the Ministry of Finance, which is preparing a provisional measure (PM) that aims to regulate sports betting activity in Brazil.
In direct mention of José Francisco Manssur, Special Advisor to the Executive Secretary of the Ministry of Finance in Brazil, the document addresses the requirement of Brazilian football clubs to participate in discussions on the regulation of the sector in the country.
The IBJR made it clear that it does not agree with the demand from the football teams, who asked for a larger fraction of the amounts obtained with the bets from the formalization of the MP. The letter is signed by President André Gelfi, who participated in a public hearing on the subject in the Chamber of Deputies this week with Mansur himself.
It is worth remembering that the main teams in São Paulo and Rio de Janeiro (Botafogo, Corinthians, Flamengo, Fluminense, Palmeiras, Santos, São Paulo and Vasco) jointly issued a note requesting contact with the federal government to deal with the matter.
Clubs request a higher share than the current 1.63% provided for in Law 13,756/2018, which is destined “to Brazilian sports entities that assign the rights to use their denominations, their brands, their emblems, their anthems, their symbols and the like to dissemination and execution of the fixed odds betting lottery”.
IBJR is against any amendment to the text of Law 13.756/2018
On the subject, the Brazilian Institute of Responsible Gaming released the following understanding:
“We support the social contribution provided for in Law 13.756/18 for sport in general.
It is public and notorious that the betting industry is already a great sponsor of sport, in particular of national football;
In general, the betting industry does not reproduce proprietary images of sports entities;
Specific allocations to the CBF or football clubs generate inequality and legal uncertainty;
CBF and football clubs are welcome to negotiate image rights with individual operators, as is already done in duly regulated markets.”
In another excerpt, the IBJR talks about alternatives to raise club revenues without negatively impacting the legal market: “In order to be able to talk about increased revenues for clubs without negatively impacting the channeling of the regulated market, there are only two possible alternatives: (i) reduce the amount allocated to the Union, or (ii) reduce the revenue of betting companies.
The possibility of reducing the amount of resources destined for the Union, more specifically for social security (art. 30, IV), education (art. 30, §1-A, I), and the National Public Security Fund – FNSP (art. 30, §1-A, II), is not feasible. With this, the other alternative is evaluated, that of reducing the turnover of betting companies in favor of football clubs. Immediately, the IBJR makes clear the inadequacy of the eventual measure”.
The manifesto also considers that an increase for clubs may lead to requests from other sports, generating a cascading effect. “Increasing the volume of revenue destined for football clubs may also lead the Federal Government to be questioned about the reason why football would be entitled to participate in the result of the collection with sports betting, when this activity is focused on different sports. sports (also involving domestic and international leagues/confederations) and not just for Brazilian football”.
For the Brazilian Institute of Responsible Gaming, the best option is to keep the current amount allocated to teams. “The best path is to maintain the current allocation of funds to the clubs (1.63% of the GGR), as it adequately remunerates these entities for the use of a right that is not currently done by the operators, generating an increase in revenue for the entities. related to sports without excessively burdening the operator. Any amount above the level currently provided for in Law 13,756/2018 will impact the channeling rate, generating losses for everyone, operators, the Government and the clubs themselves, after all, the reduction in revenue in the sector impacts everyone involved in a negative way”.
The complete document can be found here.
