Brazil
The law sets a deadline of 20 years in 240 monthly instalments for payment of debts. In return for lower interest rates and a reduction in fines football clubs must agree to commit to good management practices in the future as set down by the new act. The new lottery games will be overseen by the Ministry of Sports and its prizes are exempt from income taxes. The new sport based quinela game will be in all likelihood operated by CAIXA. Meanwhile, private operators will be granted the right to offer the football based instants Lotex.
HORSE RACING Like many jurisdictions in Latin America Brazilian
horse racing is in decline. The golden age for the industry came between the 1950’s and 1980’s but the industry has for years been losing out in the face of other types of gambling such as lotteries and bookmakers. Moreover, from the time that the races began to be televised, the public began to stop going to the racetracks. Nationwide annual membership to horse racing clubs has declined by as much as three times since the mid 1990’s. Today horse racing is no longer covered in the sports pages of many top selling newspapers as Brazilians
The Jockey Club de São Paulo was founded in 1875. In 2010 the government threatened to turn the track into a national park if the track was unable to
pay its tax debts. In 2010 it was estimated that the debt
amounted to around three times its annual gross income.
become more interested in other sports such as football. They can also bet on a wider arrange of lottery products made available to them by CAIXA.
Although extremely small scale when compared to the size of Brazil and its population the last ten years has seen small some improvements in the industry with some cause for optimism in recent years. Although clubs in some case have had to sell off assets in order to pay off debts they have managed to survive and their global potential is only now being tapped into via recent agreements to simulcast Brazilian races worldwide. In addition tracks as are being used as venues for other entertainment options such as art exhibitions and concerts due to their central location as is the case for The Jockey Club de São Paulo.
There are a number of recent developments on the way which look likely to revitalise the industry further, namely the commingling of Brazilian horse racing with international horse race activity.
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Through a number of agreements Brazilian race tracks are now being broadcast live around the world commingling local races into single pools betting which means that the industry could benefit from modern, global pari-mutuel industry standards. And those outside of Brazil can now bet directly on the outcomes of Brazilian horse racing for the first time.
Jockey Clubs own racing tacks and are responsible for running them whereby each track is granted a licence to offer horse race betting in betting shops in the area in which they are licensed. Nationwide there are now over one hundred and fifty betting shops which are officially recognised by the Brazilian Jockey Club and there are now four tracks nationwide. The sales volume stand at around US$193m, while estimations of Codere put the potential market at US$542m. Of the R$1bn that racehorses generate a year in revenues, the stakes represent R$600m. The remaining R$400m come from animal husbandry, trade and auctions.
Besides the Jockey Club de São Paulo, the main racecourses are Gavea in Rio de Janeiro, Cristal in Porto Alegre, and the Tarumã rack in Curitiba.
The Jockey Club de São Paulo was founded in 1875. Races take place on Saturdays and Sundays and on Monday. The track has gone through an extremely turbulent time and in 2010 the government threatened to turn the track into a national park if the track was unable to pay its tax debts. In 2010 it was estimated that the tax debt faced by the Jockey Club amounted to around three times the annual gross income generated by horse racing at the track. But the track managed to renegotiate its debt and agree to a repayment package with the government. After being badly managed for so many years the track has finally managed to reduce the debt and has paid off around 80 per cent, leaving 20 per cent to be normalised.
This was after the track agreed to sell off large parts of its property specifically a farm in order to offset
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