Report LATIN AMERICA REPORT - BRAZIL
and the State Championships and could be managed by Caixa. Under the proposal, 16 per cent of the proceeds would be allocated for investment in sports in primary schools.
According to the proposals money generated by online football betting would be destined for the government and for football clubs so that they could pay off their debts. However the vote on the issue was suspended in an increasingly acrimonious debate. The commission tried four times to approve the proposals but the fourth attempt was suspended due to a lack of quorum and a lack of consensus on the issue.
As a result so far the government response to the issue reflects the somewhat conservative mood of the country with a tendency to keep the 1946 ban in place. As a result while the market seems to be opening up it is only opening up slowly and the sports betting offer is still extremely limited. It is believed that for now that sports betting could be expanded but will be limited short term to CAIXA products. This is a far less controversial solution than green lighting sports betting via the internet or in bookmakers.
The first new lottery will be an instant called Lotex and will be
Apart from lottery based sports games the government has been looking at ways to regulate the online and land based markets. In November 2011 it was revealed that the government was looking into allowing sports betting via the internet and sports betting shops.
Local daily Folha de Sao Paulo reported that the Ministry of Sports had commissioned a study into the issue which found that in 2011 Brazilian sports betting turnover made via offshore sports betting sites amounted to a massive US$300m on Brazilian sports.
In June 2012 the issue came up for debate in a public hearing held by the Commission for Tourism and Sports of the House of Representatives. This time the impetus came from the state of football club finances. Under current laws Brazilian soccer clubs cannot take advantage of the growing online sports betting industry even though millions of dollars are bet locally on the outcome of Brazilian football matches. As such a number of lawmakers stated that the opening up of online sports betting could be a way for clubs to generate much needed revenue.
The Legal Studies Committee within the Sports Ministry has also looked at the creation of an
agency to regulate sports betting while the Finance Ministry has also in the past looked at legislation which would liberalise the market. However, for now it looks like lawmakers generally speaking favour plans where they would grant the Brazilian state lottery the right to offer sports betting via contract with an operator or would develop sports betting in house. Indeed the Brazilian Lottery could well be key to the future of sports betting in Brazil and according to some proposals could be the only body which will be allowed to offer online sports betting in the future.
The latest development came in May 2015 when the special committee of the House, which is responsible for strengthening the Program of Olympic Sports, met to try to adopt text that would create the Fiscal Responsibility Law of Sports. The project includes, among other things, the legalisation of online betting on football matches.
Proponent of the law Deputy Otavio Leite argued that the main aim of the law was to prevent tax evasion in the country. According to the deputy, a study by the FGV (Getulio Vargas Foundation) shows that Brazil loses R$600m a year in bets on foreign websites. According to the draft proposals, bets would be permitted during Brazilian Championship matches such as, the Brazilian Cup
based around the theme of local football clubs. Seven per cent of revenue will be destined to
sports in schools while three per cent will go directly to Brazilian football clubs.
The first product aimed to help football clubs was Timemania which is now the fastest growing CAIXA lottery product in Brazil. Timemania was designed so that it would raise US$250m in order to aid cash strapped football clubs. In July 2015 the senate passed a new law which will allow for two new sports betting lotteries. Once again the new products are designed specifically to raise revenues for football clubs and will go into effect once President Dilma Rousseff signs the new act.
The first new lottery will be an instant called Lotex and will be based around the theme of local football clubs. Of its total revenue, 10 per cent will be earmarked for projects related to school sports while 2.7 per cent will go to the football clubs. The other product is a quiniela sports game based on the results on local football matches and other sporting events. Seven per cent of revenue will be destined to sports in schools while three per cent will go directly to Brazilian football clubs.
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