Brazilian Sports Betting Faces Transparency Issues

Brasília, Brazil – Giovanni Rocco, national secretary of sports betting and economic development at Brazil’s Ministry of Sports, has urged the creation of a permanent interministerial committee to oversee the allocation of sports betting tax revenue, describing betting operators as owing a “social debt” to Brazilian sports and society. Speaking at a hearing on Wednesday that included representatives from the ministries of sport and finance, as well as the Chamber of Deputies’ subcommittee on sports betting regulation, Rocco emphasized the need for transparency in the transfer of betting tax funds to the country’s sports organizations.

• Call for Oversight: Giovanni Rocco proposed a permanent interministerial committee to ensure transparency in the allocation of sports betting tax revenue in Brazil.

• Financial Dependence on Betting: Brazilian football heavily relies on betting sponsorships, with 18 of the 20 top-flight clubs partnered with gambling companies, highlighting both opportunity and risk.

• Transparency Concerns: Sports organizations, including schools and private entities, have raised concerns over the accuracy and fairness of betting tax fund distribution, prompting public consultations by the Secretariat of Prizes and Bets.

“The allocation of resources is a major concern for the Ministry of Sports,” Rocco said. “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.”

Rocco’s proposal comes amid growing scrutiny of Brazil’s sports betting sector, which was formally regulated at the start of this year. The ministry has cited a failure to fully collect tax revenues prior to the market’s launch, raising questions about oversight and the equitable distribution of funds.

Currently, 36% of betting tax revenues are allocated to the sports sector, with the Ministry of Sports receiving the largest share. Other recipients include national sports entities, Olympic and Paralympic committees, school and university sports bodies, and state-level departments. The detailed distribution is as follows:

Concerns over transparency were echoed by Antônio Hora, president of the Brazilian School Sports Confederation, who noted that private entities often have no guarantee that allocated amounts are accurate. “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,” he said.

In response, the Secretariat of Prizes and Bets launched a public consultation in June to improve the efficiency and effectiveness of fixed-odds betting revenue allocation. The debate around betting is further complicated by football’s reliance on gambling sponsorships. Rocco highlighted that 18 of Brazil’s 20 top-flight football clubs currently have a betting partner, including Flamengo, which last month signed a reported BRL250 million ($45.9 million) annual deal with Betano, the largest sponsorship agreement in Brazilian football history.

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.

 

The Future

Recent regulatory changes also reflect a balancing act between revenue and responsibility. In May, Brazil’s sports commission approved a proposal to restrict gambling advertisements during live sporting broadcasts, including bans on using active athletes in such ads unless their careers ended at least five years prior. The proposal now awaits review by the Chamber of Deputies. “Initially, due to a lack of oversight and control, betting houses took all the investment in Brazilian football,” Rocco said. “Today, football is entirely dependent on betting house resources, which have inflated at least fivefold.”

Rocco’s call for a permanent oversight committee underscores the growing concern over the social and economic impact of gambling, as well as the urgent need for transparency in the distribution of sports funding in Brazil.