The Brazilian Institute of Responsible Gaming (IBJR) issued an official note this Monday, 30th. The entity became aware of a movement that defends the suppression of the provisions of article 30, § 1o-A, III, of Law 13,756/2018.
The change means that the negotiation of club images, brands and symbols is no longer under the management of the Federal Government and becomes the subject of negotiation on a case-by-case basis, between individuals, that is, between bookmakers and sports clubs.
For the IBJR, “the proposed change is worrying and could be highly damaging to consumers, national sport and the government itself”.
One of the points mentioned by IBJR is operational unfeasibility. “The centralized collection and transfer proposed in legalization aims to make it possible for all clubs interested in authorizing the use of image, name and brand to be able to do so and effectively receive fair compensation.
The proposal to suppress this rule, provided for in Law 13,756/2018, makes the negotiation of such rights unfeasible in practical terms. To illustrate the statement, it is enough to know that today, in football, between series A, B, C and D, there are 840 clubs”.
While the “Federal Government, as already stated, expects the regulation of the betting market, to have a number of 70 to 100 licensed operators”.
“It is worth remembering that fixed odds bets apply to several other sports, such as basketball, volleyball, futsal, fights, tennis, etc. In other words, hundreds of thousands of contracts will often have to be signed.”
Restriction of offers to consumers
According to the IBJR, the suppression of the aforementioned article should also ‘drastically impact consumers who will see their right to free choice restricted’.
“By establishing individual negotiations there will be the possibility of a club passing on its image rights to one operator and not passing them on to others. In practical terms, this could create a monopoly.”
Reduction of channeling rate
Furthermore, the Brazilian Institute of Responsible Gaming stressed that “The low supply in the gaming market of a given team can encourage consumers to look for companies in the parallel market, which without supervision by the Brazilian Government, will ignore the will of national football clubs. limit the use of their rights and will offer unrestricted gaming options.”
IBJR warns of decreasing sponsorship
Another problem mentioned in an official note was the decrease in partnerships between sports betting houses and football teams.
“The impossibility of certain houses offering certain games on their platform will generate a reduction in revenue. And, consequently, the capital available to bet on football clubs with sponsorships will also be reduced.”
The full statement can be accessed here.
About the IBJR
The Brazilian Institute of Responsible Gaming (IBJR) was born from the union of the Bet365 Groups, Flutter, Entain, Betsson Group, Betway Group, Yolo Group, Netbet Group, KTO Group and Rei do Pitaco.
Thus, the objective is to assist in discussions and development of the Brazilian sports betting market, based on greater awareness of the dynamics of the gaming sector.
