The proposal to make a new tax on betting has jeopardized the multi‑million‑dollar contracts between betting companies and football clubs. The tax could trigger escape clauses in sponsorship deals, making them harder to maintain. Some partnerships may need to be renegotiated or even terminated.
In the bill known as the Anti-Faction Bill, controversy centers on the 15% Contribution for Intervention in the Economic Domain (Cide) on user deposits. Senator Alessandro Vieira included this measure.
Industry representatives state that most sponsorship contracts contain escape clauses.
These rules allow termination of the deal in cases of extreme regulatory changes. For example, a tax increase that makes the operation financially unviable.
Maintaining the commercial relationships that currently support much of national football would become difficult, forcing clubs to renegotiate or even immediately terminate longstanding collaborations.
IBJR or Brazilian Institute for Responsible Gaming’s director, André Gelfi, argues that taxing customer deposits is a gift to the illegal gambling market.
He explains that the measure tends to strengthen the illegal market. It gives clandestine platforms an unprecedented competitive advantage.
The logic is simple. If a bettor deposits R$100 on a legal betting site, they will only have R$85 to play with. On an illegal site, the R$100 remains worth R$100.
Today, more than half of the market already operates without a license, and this figure could make the situation worse.
Estimated at up to R$ 30 billion, the text approved in the Senate stipulates that the revenue will go to Public Security.
Therefore, authorities should allocate resources to combating organized crime and expanding the prison system.
The bill returns to the Chamber of Representatives since there were changes.
The betting industry hopes to reverse the measure in Congress. However, warns that the fight is likely to end up in court if the tax passes, as companies consider the charge unconstitutional.
