Public Feedback Essential in Tax Revenue Allocation for Betting in Brazil’s Sports Sector
The Secretariat of Prizes and Bets (SPA) has initiated a public consultation aimed at revising how tax revenue from fixed-odds betting is allocated, specifically emphasizing the distribution relating to sports image rights in Brazil. This effort reflects the SPA’s intention to enhance the efficiency and effectiveness of these financial distributions, potentially leading to amendments in the existing legal framework established under Law No. 13,756/2018.
Under the current law, revenue is divided into three primary segments, but only two will be open for this public consultation. The first segment pertains to allocations intended for private organizations and civil society groups, like the Brazilian Red Cross. The second segment focuses on entities directly linked to Brazilian sports, with the Brazilian Olympic Committee being the predominant recipient of funds from sports betting taxes. This consultation aims to address the distribution of these funds and is limited to the two specified segments, leaving the third segment, which covers allocations for public services, unchanged.
Running for a duration of 45 days and concluding on August 6, the consultation encourages stakeholder participation through the Participa+Brasil portal. The format mirrors the SPA’s previous consultation process that shaped its 2025-26 regulatory agenda.
Focusing on Sports Image Rights
An interesting aspect of the SPA’s inquiry includes the handling of sports image rights—integral to how funds are distributed to various stakeholders within the sports community. The consultation consists of twelve targeted questions, the first of which queries whether the federal government ought to impose additional guidelines beyond the stipulations of Law No. 13,756/2018 for revenue allocation.
In a recent announcement, the SPA articulated its goal to streamline revenue distribution to the sports sector within the next few months, aiming for improvements as outlined in their regulatory agenda for 2025-26.
According to Article 30 of the aforementioned law, betting tax revenues are designed to benefit entities within the National Sports System, leveraging the use of their identifying features—names, logos, and other branding elements—for the promotion of fixed-odds betting. A significant number of consultation questions directly concern sports image rights, indicating the SPA’s commitment to ensuring fair distribution to key stakeholders such as athletes, clubs, and event organizers.
Participants are specifically invited to suggest common elements that can guide the determination of image rights compensation across various sports.
Current Allocation Landscape
The sports sector currently receives 36% of the total tax revenue derived from betting, primarily benefiting the Ministry of Sports. Here’s how this distribution breaks down:
| Entity | Tax Revenue Percentage |
|---|---|
| Ministry of Sports | 22.2% |
| National Sports System Entities | 7.3% |
| Brazilian Olympic Committee | 2.2% |
| Brazilian Paralympic Committee | 1.3% |
| Brazilian Club Committee | 0.7% |
| State and Federal District Sports Departments | 0.7% |
| Brazilian School Sports Confederation | 0.5% |
| Brazilian University Sports Confederation | 0.5% |
| Brazilian Master Sports Committee | 0.3% |
| Brazilian Paralympic Club Committee | 0.3% |
Enhancing Transparency in Distribution Process
The consultation also seeks to gather insights on how the mechanics of the revenue distribution could be improved while enhancing overall transparency. There is a significant emphasis on exploring new mechanisms that ensure allocated funds effectively reach the designated beneficiaries.
At the conclusion of the consultation, participants will have the opportunity to propose specific regulatory texts aimed at refining the allocation processes, whether through new articles or amendments to the existing legal framework outlined in Law No. 13,756/2018.
This engagement reflects the SPA’s recognition of the need for a more democratic and open dialogue regarding the financial structures that impact Brazil’s dynamic sports sector.