SÁB 18 DE MAYO DE 2024 - 14:28hs.
Due to Pelè Law

Brazilian clubs may lose US$ 73 million a year with bets

The expectation is that, with the regulation, the sports betting sector moves R$ 4 billion (US$ 970m) per year in Brazil. But currently, Pelé Law grants betting rights for free making that the clubs could lose R$ 300 million (US$ 73m) a year if they do not mobilize to modify paragraph 2 of article 42. In the journalist Andrei Kampff’s “Law in the Field” column in UOL, give their opinion Professor Pedro Trengrouse, Vasco's VP of Marketing, Bruno Maia and CBF Secretary-General Walter Feldman.

One of the last acts of Michel Temer (MDB-SP) had as president of Brazil was to sanction Law 13.756 / 18, which provides for the regularization of sports betting in the country. Through it was created a new type of betting in Brazil, the "fixed odds", when the bettor makes a bet related to real sporting events.

The modality should be explored exclusively in a competitive environment, being possible the commercialization in any physical and virtual commercial distribution channels (internet), foresees the document. The expectation is that, with the regulation, the sector moves R$ 4 billion (US$ 970m) per year in the national territory.

Three years before the law was sanctioned by Temer, a change in the Pelé Law "dribbled" Brazilian clubs, making them stop making more money with the regulation  of sports betting in Brazil by selling betting rights.

"Clubs need to mobilize to modify Article 42, paragraph 2 of the Pelé Law if they want to think about betting rights. Currently, it grants betting rights for free. That is the main concern that clubs must have. They can lose approximately R$ 300 million (US$ 73m) a year," warns lawyer Pedro Trengrouse, a member of the International Association of Game Industry Consultants and vice president of the OAB Special Gaming Commission.

Betting rights are the right of the bookmakers to display the best moments of the games on their websites, making the player stay longer on the betting company's own website.

Although the Pelé Law establishes in article 42 that "sports entities have the right of arena, consisting of the exclusive prerogative to negotiate, authorize or prohibit the capture, fixation, emission, broadcasting, retransmission or reproduction of images, by any means or process, of sports spectacle in which they participate," the inclusion in 2015 of paragraph 2 allows gambling sites to use the images without having to compensate clubs for such. The text states that "the provisions of this article shall not apply to the performance of flagrant spectacles or sporting events solely for journalistic, sporting or educational purposes or for the purpose of raising legally authorized bets, subject to the following conditions."

As a comparison, the Professional Tennis Association (ATP) wants US$ 1 billion to sell its tournament betting rights over a ten-year period.

But that is not all that is at stake. Last month, the government opened public consultation to regulate the operation of bookmakers in the country. The consultation is open for clubs, bookmakers, sports governing bodies and even fans to make their proposals. It will be available until August 31st.

"Clubs need to make good use of this opportunity that the Ministry of Economy has opened with a public consultation to make suggestions. From the point of view of the integrity of sport and the protection of fans and the popular economy, [the law] needs mechanisms to combat the manipulation of results. Protecting the integrity of sports and fans should be a priority. The popular economy cannot take risks with operators unable to live up to their commitments. Uncertainty sports results needs to be protected," says Trengrouse.

In 2005, in the case known as "Whistle Mafia", 11 matches of the Brazilian Championship had to be played again because of the manipulation of results. In 2017, bettors were not awarded prizes because operators did not honor bets on the results of the 13th round of the Brazilian Championship, when visiting teams won the majority of matches, significantly raising the prize pool.

"Brazil today is completely exposed, and only with the regulation of betting it will be possible to supervise. There must be proper regulation providing permanent monitoring mechanisms to identify signs of manipulation, such as a deviation in betting patterns. It is also crucial that the ordering law provides for effective punishment for all who endanger the integrity of the sport," points out Trengrouse.

For Vasco's Vice President of Marketing, Bruno Maia, the arrival of bookmakers should boost the sponsorship market in the country.

"The legislation was not enough for the major players to be confident in investing in Brazilian clubs, and they were shy. We are experiencing a wave that has knocked down sponsorship values for clubs in 2018, a drop of approximately 20%. Caixa's drop may be even bigger, between 30% and 40%. The entry of a new agent, at a time when the economy is rampant, can generate up to 50% appreciation in sponsorship quotas, and this is a big impact," said Maia.

The Brazilian Football Confederation (CBF) also shows that it has been closely following all the movement around the regulation of betting in Brazil.

"We recognize that there is a betting market. We are studying, talking to a lot of people, doing a legal analysis. The most important question is about ethics and integrity to prevent the manipulation of results. This is a worldwide concern," explained the CBF Secretary General, Walter Feldman.

Source: GMB / Uol Esportes / Thiago Braga