Brazil sports secretary calls for transparency over transfer of betting tax revenue

Giovanni Rocco believes betting operators owe a “social debt” to Brazilian sports and society.

Giovanni Rocco, the national secretary of sports betting and economic development of the ministry of sports in Brazil, has advocated for the creation of a new interministerial committee to ensure transparency in the transfer of betting tax revenue.

He believes a permanent committee is required for the government to oversee the transfer of sports betting tax revenue to the appropriate sports entities, especially with the social and economic problems that can be caused by gambling.

Rocco made the proposal on Wednesday at a hearing between the ministries of sport and finance, as well as the chamber of deputies’ subcommittee on sports betting regulation.

At the hearing, representatives and organisations in the sports sector called for greater transparency in the collection and distribution of sports funds.

Rocco highlighted the Brazil government’s failure to collect tax revenue from sports betting in the lead up to the launch of the regulated market on 1 January this year.

“The allocation of resources is a major concern for the ministry of sports,” Rocco told the hearing.

“Betting companies owe a social debt to Brazilian sports, as they have used sports to enter people’s lives and homes. Therefore, this compensation must be appropriate so that we can address the problems arising from betting as a whole.”

What tax revenue does the sports sector currently receive?

At present, 36% of betting tax revenues are allocated to the sports sector, with the ministry of sports receiving the largest share. The distribution breakdown is as follows:

BodyPercentage of tax receivedMinistry of Sports22.2%National Sports System entities7.3%Brazilian Olympic Committee2.2%Brazilian Paralympic Committee1.3%Brazilian Club Committee0.7%State and Federal District sport departments0.7%Brazilian School Sports Confederation0.5%Brazilian University Sports Confederation0.5%Brazilian Master Sports Committee0.3%Brazilian Paralympic Club Committee0.3%

Antônio Hora, president of the Brazilian School Sports Confederation, raised concerns over the accuracy of the resources being allocated.

“We private entities are able to receive the resources, but we have no guarantee that those amounts are correct, due to the lack of transparency mentioned here,” Hora explained.

The Secretariat of Prizes and Bets has looked to address such concerns, launching a public consultation back in June, with the objective of making the allocation of fixed-odds betting revenue “more effective and efficient”.

Rocco also noted the reliance of football in Brazil on the betting sector, with 18 of the 20 top-flight football clubs having a betting partner this season.

Last month, Betano announced a deal with Flamengo to become the club’s master sponsor. The agreement, the biggest in Brazilian football history, is worth a reported BRL250 million ($45.9 million) a year.

In May, the Brazil sports commission greenlighted a proposal to restrict gambling ads, with the Senate’s subsequent approval meaning it’s now up to the Chamber of Deputies to review the bill.

Advertising during live sporting broadcasts would be banned, as well as the use of athletes in ads, except for those whose career had ended at least five years previously.

With such a reliance on the gambling sector, Rocco believes the debate on betting advertising in football must be a responsible one, to ensure the sport is not harmed.

“Initially, due to a lack of oversight and control, betting houses took all the investment in Brazilian football,” Rocco added.

“Today, football is entirely dependent on betting house resources, which have inflated at least fivefold.”