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Brazilian football club Flamengo has denounced a proposal to reallocate tax revenue from licensed betting operators, saying the money is already being spent on sport and shouldn’t be diverted to improve public security.
During the course of the PEC’s passage through the Chamber of Deputies, the club raised concerns over the amendment, which is referred to as the Security PEC. Flamengo stated that it would like to see more investment in public security, but that doesn’t have to be at the cost of resources allotted to Brazilian sports since the betting market was legalized.
Proposed Change Could Reduce Sports Funding
The amendment was submitted in the last round of consideration of the proposal in the Chamber, just before the parliamentary recess in July, according to Flamengo. Now discussions are underway; the club said the issue needs to be revisited.
“It happened during the final stage of the proposal’s consideration in the Chamber, before the parliamentary recess in July. Now, with the resumption of discussions, the issue once again requires attention”, Flamengo said in its official statement.
The club stressed strengthening public security and increasing public security funding. But it suggests that this shouldn’t come at the expense of less money spent on sports, and that betting activity is interlinked with sporting competitions, clubs, and events.
Flamengo Highlights Betting’s Link to Sport
Flamengo said it was a matter of the portion of the taxes collected from the regulated betting market being clearly allocated for sports when the gambling market was legalized in Brazil. Withdrawing those funds would place a burden on a source of funding that has already been integrated into the nation’s sports landscape, the club warned.
“Sports organizations fought for many years to expand the sources of funding available to the sector. Today, the challenge has become even more basic: preserving resources that have already been allocated to sports and that, in this case, originate directly from sports-related activity,” the club stated.
The debate follows the ongoing use of several financing systems by the Brazilian sports organizations to finance competitions, clubs, development programs and other activities. Now, Flamengo is concerned with the status quo when it comes to the allocation of funds deriving from betting, a subject under discussion by lawmakers.
Security and Sport as Complementary Priorities
Also, Flamengo pointed out that the support of public security and of sports are not mutually exclusive. The club feels that the government should find more funds for security, but not to compromise an activity with a wider social and developmental impact.
“The path should be to seek the resources necessary to finance advances in public security without weakening an activity that also plays a fundamental role in the country’s development,” the statement said. “Investing in sports means investing in the development of citizens. It means expanding opportunities, promoting education, health, discipline and coexistence, strengthening social ties and providing prospects for children and young people throughout Brazil.”
The club added that maintaining sports funding would preserve a policy with significant social reach. “Preserving the resources allocated to sports therefore means preserving a policy with enormous social impact that also contributes, at its origin, to building a safer society,” Flamengo said.
PEC Moves to the Next Stage
The Security PEC is expected to go through the Senate’s Constitution and Justice Committee before going to the full Senate. Flamengo said the upcoming steps in the legislative process will bring a result that will solve the public security issue, but not against the backdrop of reducing funding for sports.
Senator from the Workers‘ Party (PT) of Sergipe, Rogério Carvalho, who is the rapporteur of the bill, has been aware of complaints from those in the sports sector. Now, Flamengo and other stakeholders are seeking to include alternatives in the discussion that would avoid the proposed reduction in the funding of Brazilian sports via betting.
Source: iGaming Brasil
