SPORTS BETTING

Brazil – Football clubs want share of sports betting revenue

By James - 25 April 2023

Eight top football clubs have delivered a letter to the Ministry of Finance detailing their own proposals on how sports betting should be regulated. 

According to Brazilian news outlet Poder 360, Botafogo, Corinthians, Flamengo, Fluminense, Palmeiras, Santos, São Paulo and Vasco da Gama want a transfer of the sports betting revenue if their logos and matches are being used.

The entities said that they were willing to talk with the government, but in the absence of an agreement between the parties, they could present an objection to the project and veto the use of their image and brand by sports betting sites. 

According to the letter, which was sent to Minister Fernando Hadadd, without the teams, bettors would lose interest and all parties would lose out.

In the letter, the clubs said that they wanted remuneration of 5.01 percent on bookmaker’s gross income. Meanwhile payment would be made directly to the clubs.

“Although the need to regulate economic activities is understood, as a way of maintaining economic order and tax collection, it is necessary that this regulation preserve the economic viability of the activity and safeguard the right of the Clubs, under the risk of unbalancing a sensitive financial structure that could have negative effects and even damage the activity”, stated the clubs in a statement.

Earlier this month The Brazilian Football Confederation (Confederação Brasileira de Futebol; CBF) filed a request with the Ministry of Finance to modify sports betting regulations so that football clubs would receive a higher percentage of revenue from sports betting.

In its proposal, the CBF also proposed that the government consider the financial transfer of money from the industry to clubs not as public money, but as remuneration for the use of club and championship brand names. Clubs and other sporting entities would therefore be less subject to government scrutiny.