Brazilian Secretariat of Prizes and Bets Seeks Input on Sports Betting Tax Revenue Allocation
The Secretariat of Prizes and Bets (SPA) has initiated a public consultation to revise the allocation of tax revenue generated from fixed-odds betting in Brazil, with a particular emphasis on sports image rights. This consultation is part of the SPA’s efforts to ensure that betting tax revenue is appropriately distributed, especially within the Brazilian sports sector.
The SPA aims to make the allocation of revenue from fixed-odds betting “more effective and efficient,” potentially leading to changes in how funds are allocated under Law No. 13,756/2018.
Law No. 13,756/2018 divides revenue allocations into three categories, although only two are subject to this consultation.
The first category concerns allocations to private entities and civil society organizations, such as the Brazilian Red Cross.
The second category is directed towards Brazilian sports entities, including the Brazilian Olympic Committee, which is the largest beneficiary of sports betting taxes. The distribution of these funds is the primary focus of the new consultation.
The third category, which covers legal assignments to public services, will not be part of the consultation.
The SPA’s consultation will last 45 days, closing on August 6th, and interested parties are encouraged to provide their input.
The consultation is being conducted through the Participa+Brasil portal, following a similar procedure used by the SPA to develop its regulatory agenda for 2025-2026.
Sports Image Rights in the Spotlight
The SPA’s consultation includes 12 questions, the first of which asks whether the federal government should establish additional rules and criteria for allocating betting revenue beyond what is stipulated in Law No. 13,756/2018.
In April, the SPA published its regulatory agenda for the period 2025-2026, stating that efforts to improve the allocation of betting resources to the sports sector would be undertaken in the second quarter.
Article 30 of Law No. 13,756/2018 specifies that tax revenues from betting will be allocated to entities within the National Sports System “in exchange for the use of their names, sports nicknames, images, brands, emblems, hymns, symbols, and the like for the promotion and execution of the fixed-odds betting lottery.”
Sports image rights are addressed in six of the 12 questions, with the SPA seeking to establish enhanced measures to ensure that appropriate amounts are distributed to key stakeholders, such as athletes, sports clubs, and competition organizers.
The questions include requests for suggestions on specific elements common to all sports that could dictate the value to be paid for various image rights.
Currently, the sports sector receives 36% of the tax revenue from betting, with the Ministry of Sports being the primary beneficiary. The distribution is as follows:
| Organization | Percentage of Tax Received |
|---|---|
| Ministry of Sports | 22.2% |
| Entities of the National Sports System | 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% |
SPA Explores Improvements in Sports Betting Tax Distribution
The consultation also asks respondents for their opinions on how the operation of the distribution process could be improved and how the procedure could be made more transparent.
Additionally, the SPA is seeking suggestions for new mechanisms to ensure that resources reach the intended beneficiaries.
The consultation concludes by requesting respondents to offer specific regulatory texts that could improve the allocation of tax revenue, either in the form of complete articles or amendments to existing sections of Law No. 13,756/2018.
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