Brazil Considers Restricting Betting Sponsorship in Rouanet Law Projects

Brazil’s federal government is mulling new measures to block betting firms from leveraging cultural projects that receive funding from the Rouanet Law for their branding. The measure would address sponsorship deals related to projects that benefited from the federal tax incentive established under Law No. 8,313/1991, or the Rouanet Law.

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Brazilian outlet JOTA notes Lula da Silva is considering implementing the ban by presidential decree or a change in the law. The discussion is with the Ministry of Culture, and may include other ministries of the federal government.

Government Reviews Possible Betting Sponsorship Ban

The government’s legal staff is reviewing what legal instrument would be suitable for the implementation, said Promotion and Incentives for Culture secretary, Thiago Rocha. The main issue is how bet brands would gain visibility by participating in cultural events and projects funded by federal tax incentives.

The goal of the government would not be to discourage betting companies from investing in cultural activities. Rather, the offer would be to stop projects that benefit from the Rouanet Law turning into betting operators’ advertisements.

Rocha said that it should not be up to the Ministry of Culture to make such a restriction. As it would create a specific ban on a class of businesses, it would probably be necessary to have an interministerial discussion.

Existing Sponsorships Could Remain Unaffected

Information quoted by JOTA shows that internal Ministry of Culture data shows that betting companies are currently a relatively small source of funding for projects that are financed by the Rouanet Law in comparison with other financial sponsors.

This restricted degree of engagement might diminish the possible monetary significance of cultural agents and artists if it is applied to produce a restriction. What’s more, the government sees the current phase of the betting companies’ involvement with cultural financing as a chance to set some rules in place before it gets more common.

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A new restriction would not be retroactive, says the report. Projects that already had a betting company sponsor them before new rules would be implemented would not be impacted.

Proposals for the 2026 Rouanet Law cycle will be due in October. If implemented, a restriction would come into effect in the next project cycle, which would be 2027, Rocha said.

Lula Steps Up Criticism of Betting Sector

The subject of the discussion is timed with growing criticism from President Lula about the regulated betting industry in Brazil. The question has also been increasingly asked politically as the October election draws near, with Lula running for a fourth term as President.

In August, Lula stated that he will not authorize betting companies to continue the practice without being convinced that they have a social role. Also, he said that he personally has always been against the sector.

The possible Rouanet Law limitation is another element in the government’s wider discussion on the role of betting companies in Brazilian society, advertising their products. If it is passed, it will bring cultural sponsorship into the regulated landscape of betting and be a controversial new addition.

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Source: SBC Noticias