Brazil evaluates betting law
Football teams and the local government are debating the implementation of a law for the sports betting market in Brazil.
Brazil.- Brazilian legislators are debating different projects to move forward with the regulation of sports betting. One of the points being discussed is the role of sports clubs when it comes to betting. Thus, they will try to work as “companies” instead of “nonprofit societies.”
Within this framework, they’re also evaluating the implementation of a betting law in Brazil as an inventive model for clubs that renew themselves. This means that they would receive compensation from gambling sites for using their names. In addition, this income would not be granted to clubs that continue with their civil association model.
Representative Pedro Paulo has become the main exponent of the project. He has already gathered the support of the President of the Chamber, Rodrigo Maia. At a meeting held last Thursday, the presidents of the Brazilian football clubs rejected the project. For that reason, new debates are likely to happen at the headquarters of the Brazilian Football Association. Legislators hope to get the approval from clubs for the Pedro Paulo project.
Pedro Paulo comments on the proposal
“Another proposal that we are creating to encourage clubs to become companies is the subject of betting rights. There are many betting sites that place offers in the game, this is an important source of financing. In the European market this generates €1 billion of revenue for the clubs. But here in Brazil, neither clubs nor corporate clubs can obtain betting rights. Therefore we created the idea that we can offer this mechanism to the corporate club so it can get money. These are the mechanisms we are using to encourage clubs to become companies in a new phase of their history,” said Pedro Paulo.
“Betting rights are an incentive model for business owners. Those who continue as civil associations will continue with the different tax burden. Wouldn’t it be unfair in these cases? The club wants to continue as a civil association, will have assessments and bonuses. It is not a project for those who wish to remain a civil association,” he concluded.
