The Confederação Brasileira de Futebol (CBF), Brazil’s soccer confederation, wants additional funding in the form of sports betting taxes. Amid discussions for revolutionizing the gaming system, the body asked to receive a 4% share of licensed operators’ revenues. The CBF said that the proceeds, if granted, would be distributed among its leagues.
The confederation’s proposal basically seeks to benefit more from the growing sports betting market. Since 2018, the CBF has been receiving 1.63% of operators’ revenues, as outlined in the law.
However, the organization hopes that it will be able to reach an agreement with the Ministry of Finance to secure extra funding.
Several notable soccer clubs have even expressed their desire to participate in the decision-making regarding the tax changes. These include Botafogo, Corinthians, Flamengo, Fluminense, Palmeiras, Santos, São Paulo and Vasco da Gama. They slammed the CBF for not providing them with a platform to voice their own opinions.
The clubs have various financial concerns amid the ongoing restrictions of sponsorship agreements with offshore sportsbooks. Many teams, especially Series A and B ones, are concerned that this will be a major blow to their financial well-being.
CBF Seeks Discussion with the President
The CBF, meanwhile, remains firm that a part of bookmakers’ proceeds from betting should be used to fund Brazilian soccer. The confederation even demanded meetings between its leadership and President Luiz Inácio Lula da Silva and finance minister Fernando Haddad.
The latter is expected to soon present a new tax framework for sports betting in the country. He believes that Brazil is currently experiencing severe losses because of its lack of a proper taxation regime. Haddad hopes to fix the outward flow of money as he believes that the LATAM country can generate as much as $3 billion from betting taxes.
Brazil failed to fix its taxation system last year, so Haddad hopes to make a breakthrough in 2023.
New Bodies Will Protect Sports and Betting in Brazil
In other news, two weeks ago, several major gambling operators joined forces to form the Brazilian Institute of Responsible Gaming. The newly-formed body will seek to contribute to the ongoing discussion and development of the gambling market in the LATAM region.
The institute will collaborate with all sectors of society, helping Latin America establish a strong, reliable and safe gambling ecosystem.
Earlier in March, a new non-profit organization called the Brazilian Association for the Defense of Sport Integrity, vowed to protect the integrity of professional sports.