Operator News
Brazil – Brazil’s football clubs could be saved by sports betting
By Phil - 8 November 2013
Delegates attending the inaugural Brasilian Gaming Congress (BgC) across 18 to 20 November in Rio de Janeiro, will learn how a responsibly regulated sports betting market could serve as a source of financial salvation for Brazil’s struggling football clubs which have amassed debts of $1.4bn in unpaid taxes in 2013 alone, with the government forced to pay part of the debt from taxpayers’ purses.
Ewa Bakun, the person responsible for organising the up-coming BgC explained: “While Brazilian soccer clubs and other sports are continuing their spiral into debt, a high percentage of sports organisations in countries such as Spain and the UK derive their revenue from sponsorship agreements with betting firms. Sports betting regulation will create a fully transparent environment in Brazil for clubs to improve their financial performance by partnering with respected and reputable sports betting providers.”
She added: “The big question BgC speakers and delegates, including key government officials, regulators, sports bodies and gaming companies from all over the world, will be trying to address, is why so much taxable revenue is currently left to illegal operations and even criminal gangs, when there is an opportunity to follow countries like the UK, France and Denmark in legalising sports betting and channeling the tax revenue back to the state. For example, since France regulated online sports betting just ahead of hosting the World Cup in 2010, they were estimated to have made €50.6m in tax revenues in just the first six months, all of which would have gone to illegal operators prior to their regulation.
According to BNL’s Magnho José, one of the speakers at BgC, the biggest potential beneficiaries of sports betting regulation will be the State and professional players. He explained: “Illegal gaming transactions in Brazil are worth almost double the R$11.1bn generated by legal gaming – which is composed of R$10.4bn generated by the Caixa Econômica Federal lotteries, R$400m generated by the state lotteries and R$300m by horse racing – without bringing any benefit to the Government or society.”
