Brazil lawmakers seek fix for $142m betting revenue standoff

Brazil lawmakers seek fix for 2m betting revenue standoff
Congressional committee debates how to unlock funds trapped by regulatory gap

 

Brazil’s Chamber of Deputies is trying to break a legal deadlock that’s keeping BR767m ($142m) in betting revenue from reaching athletes, clubs and sports federations. The money sits frozen in a dedicated account.

Pietro Lorenzoni is ANJL’s legal director. He represents 35 licensed operators who’ve already transferred BR2.1bn to designated organisations in the first half of this year alone. “We want to pay but we need to know who receives it and in what proportion,” he told the Sports Committee.

The committee heard from athletes, operators and legal experts. Each group has different ideas about what should happen next.

Why This Money Remains Stuck in Legal Limbo

Law 14.790/2023 created the revenue share from fixed-odds betting. But it didn’t explain how the funds should be divided. That oversight is now blocking everything.

The core dispute? Whether this money counts as public or private. Operators insist it’s private funds. The Ministry of Sports says no, it’s public resources. And that matters because different rules apply depending on which side wins that argument.

Without clear regulations, nobody can touch the cash. It just accumulates while everyone argues.

What Solutions Lawmakers Are Considering

Sports Committee chair Laura Carneiro laid out the options during the hearing. “We are here to hear all sides and decide whether the solution should come through amendments to existing laws or an entirely new framework,” she explained.

Jorge Borçato heads the National Federation of Professional Soccer Players. He’s pushing for footballers to get priority treatment. “More than 50% of bets are directly linked to the athlete: a yellow card, a goal he scores,” he pointed out. His organisation wants Congress to introduce a specific bill.

Olympic athlete Rafael Silva suggested a decentralised fund. Something like Brazil’s Audiovisual Law. Other experts at the hearing recommended copying the music industry’s Ecad collection system instead.

How This Standoff Affects Brazil’s Betting Market

The BR767m represents just part of what operators owe. They’ve paid out billions to other designated groups without problems. But this specific pot remains untouchable until lawmakers act.

Athletes argue they deserve the lion’s share since bettors wager on their individual performances. A yellow card here. A goal there. Every action creates betting value.

Operators aren’t refusing to pay, they’re demanding clarity first. The ANJL and its 35 member companies need regulations that spell out exact percentages and recipients. They can’t distribute funds based on guesswork.

Congress now faces pressure to reach consensus. The longer this drags on, the more money piles up. And the more frustrated everyone gets.

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