Sports betting regulation: IBJR opposes increase in payouts to football clubs

IBJR Chairman André Gelfi in the House of Representatives audience

This Thursday, 13th, the Brazilian Association for Responsible Gaming (IBJR) issued a declaration addressed to the Ministry of Finance, which is preparing a provisional measure (PM) aimed at regulating sports betting in Brazil.

The document, which directly refers to José Francisco Manssur, special adviser to the executive secretary of the Brazilian Ministry of Finance, addresses requests for Brazilian football clubs to participate in discussions on the regulation of the industry in the country.

IBJR clearly disagreed with the football team’s request for a larger percentage of the bets formalized by the MP. The letter was signed by President Andrei Galfi, who participated in a public hearing in the House of Representatives on the subject this week, along with Mansour himself.

It is worth remembering that Sao Paulo and Rio de Janeiro’s main teams (Botafogo, Corinthians, Flamengo, Fluminense, Palmeiras, Santos, Sao Paulo and Vasco) jointly issued a Request to contact the federal government to deal with this matter.

Clubs are asking for a higher share than the current 1.63% set by Law 13,756/2018, which aims to “allocate to Brazilian sports entities that assign the right to use their denominations, brands, emblems, anthems, symbols, etc. to fixed The dissemination and enforcement of odds betting”.

IBJR opposes any amendments to the text of Law 13.756/2018

On this issue, the Brazilian Association for Responsible Gaming has issued the following understanding:

“We support the social contribution of sports in general as stipulated in Law 13.756/18.

It is well known that the gaming industry is already a significant sponsor of sports, especially national football.

In general, the gaming industry will not replicate the proprietary image of a sports entity;

Specific allocations to CBF or football clubs create inequality and legal uncertainty;

The CBF and football clubs are welcome to negotiate image rights with individual operators, as they do in properly regulated markets. “

In another excerpt, IBJR talks about alternatives for raising club revenues without negatively impacting legal markets: “In order to be able to discuss increasing club revenues without negatively impacting access to regulated markets, there are only two There are two possible alternatives: (i) reduce the amount allocated to the league, or (ii) reduce the bookmaker’s revenue.

Possibility of reducing the amount of resources allocated to the European Union, more specifically for social security (Article 30 Paragraph IV), education (Article 30 Paragraph 1-A Paragraph I) and the National Fund for Public Security – FNSP (Section. 30, §1-A, II), is not feasible. With this, another option is evaluated, which is to reduce the bookmaker’s turnover in favor of football clubs. IBJR immediately articulated the deficiencies of the final measures.”

The manifesto also argued that an increase in clubs could lead to demands from other sports, creating a cascading effect. “Increased revenues spent on football clubs could also lead to the Federal Government being questioned as to why football has the right to participate in the collection of results for sports betting, as this activity focuses on different sports. Sports (also involving domestic and international leagues/confederations), while It’s not just Brazilian football”.

The best option for Brazil’s Responsible Gaming Association is to keep the current amount allocated to the team. “The best thing to do is to maintain the current allocation of funds to clubs (1.63% of GGR) as it provides sufficient remuneration for these entities to use the currently outstanding rights of the operator, thereby increasing revenue entities. Sports related , without unduly burdening the operators.Any amount higher than the level currently stipulated by Law 13,756/2018 will affect the lead rate, causing losses for everyone, the operators, the government and the club itself, after all, the industry earns A reduction in this would have a negative impact on all involved.”

Full documentation can be found at here.

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