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Brazil: Rio Grande do Sul showcases model for allocating betting revenues to municipalities

State presents a framework at the national forum, positioning itself as a reference for sports funding distribution.

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Adao Candido
Key Points
Rio Grande do Sul allocates 100% of betting-derived funds to municipalities
Model prioritises grassroots sport, governance and structured local policy
Federal authorities signal framework could guide other states

Rio Grande do Sul has presented its framework for allocating revenues from fixed-odds betting to municipalities, positioning the model as a potential benchmark for other Brazilian states.

The proposal was outlined during the National Forum of State Secretaries of Sport in Brasília, where Adão Cândido, Director-General of the State Secretariat of Sport and Leisure, detailed how the state manages funds generated under Law No. 14.790/23.

Under the model, 100% of the state’s share of betting-related revenues is transferred directly to municipalities through a “fund-to-fund” mechanism. 

Rather than retaining or centrally managing the funds, the state opted to redistribute resources in full, with a focus on grassroots sport development, professional training and strengthening local governance structures.

To access the funding, municipalities must meet a set of structural requirements, including maintaining an active Municipal Sports Council, operating a dedicated municipal fund and implementing a formal sports development plan. 

These conditions are designed to ensure that funding is used within an organised and accountable framework, while also encouraging long-term policy development at the local level.

According to representatives from the Ministry of Sport, the model stands out for its simplicity, transparency and replicability. 

The state also outlined future steps, including the creation of a State Sports Fund, the development of data systems to track outcomes and a training programme aimed at supporting municipalities in meeting governance requirements.

Brazil’s Chamber of Deputies has recently approved a bill establishing the Federal University of Sport.

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