Concerns of Soccer Clubs:
The proposed ban, an amendment to Brazil's sports betting bill, aims to restrict operators from advertising in stadiums or signing sponsorship deals with teams. However, the soccer clubs argue that such a ban would strip them of a crucial revenue source, posing a significant threat to the sector.
Letter to the Senate:
The letter, dated November 10, outlines the concerns of the clubs regarding the ban. Among the signatories are numerous prominent local clubs. These clubs depend on gambling sponsorships for vital funding, essential for the maintenance and expansion of their operations.
Delay in Sports Betting Legislation:
The proposed ban is contributing to further delays in Brazil's sports betting legislation. Senator Eduardo Girão, a prominent supporter of the ban, claims that advertising exposes people to harm. Supporters argue that the measure will aid in addressing problem gambling and reducing gambling-related crime. The Senate is now tasked with deciding whether to send the ban proposal to the Chamber of Deputies, potentially causing more setbacks in the legislation process.
Regulatory Hurdles and Advertising Rules:
While progress toward legalizing sports wagering has been hinted at, regulatory obstacles persist. In late October, Brazil introduced stringent requirements for operators, including regulations on advertising near educational institutions. Operators are also prohibited from suggesting that gambling leads to personal success or improved financial conditions. Responsible play promotion is also mandated.
Ongoing Tax Disputes:
Adding to the challenges, gambling taxes remain a contentious issue. Earlier this year, the IBJR (Institute for Brazilian Gaming Law) voiced opposition to the latest sports betting tax proposals.