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Brazil considers restricting betting sponsors using tax incentive

The Ministry of Culture is examining whether online betting operators should face formal limits on using tax-incentivized cultural sponsorships as local governments tighten advertising rules.

2 min read
Brazil-ministry-firms
Key Points
Betting operators have directed BR11.8m ($2.3m) to Lei Rouanet projects since 2025
Betano operator Kaizen Gaming accounted for more than R$5m through sponsorship of Rio de Janeiro's New Year's Eve celebrations 
The Ministry of Culture is studying regulatory options for restricting betting sponsorship through the incentive scheme

Brazil's Ministry of Culture is considering restrictions on betting operators using the Lei Rouanet tax incentive program, extending the country's tightening approach to gambling advertising into cultural sponsorship.

Betting operators contributed BR6m (US$1.17m) to projects through the program in 2025 and another BR$5.8m so far in 2026, taking the combined amount to BR11.8m. The figure remains a small proportion of the BR$3.4bn raised through the scheme last year.

Kaizen Gaming, which operates Betano, was the largest betting-sector contributor identified in the data, directing more than R$5m to Rio de Janeiro's New Year's Eve celebrations. Other betting brands have supported cultural projects including theater productions, festivals and institutional activity programs.

Under Lei Rouanet, companies taxed on actual profits can direct up to 4% of income tax due toward approved cultural projects. Sponsorship differs from donations because it can provide brand exposure for the funder, while qualifying projects can receive substantial or full tax deductions depending on their classification.

The Ministry of Culture said it is examining the legal and regulatory options available to formally restrict tax-incentivized sponsorship from online betting businesses. The existing framework already permits sector-specific conditions on commercial promotion.

The review comes as betting advertising faces restrictions outside the federal cultural framework. Rio de Janeiro introduced a decree in July prohibiting betting advertising in public spaces and locations operating under municipal authorization, including restrictions affecting municipal events.

Federal oversight has also expanded since Brazil's regulated fixed-odds betting market began operating under the authorization system administered by the Ministry of Finance's Secretariat of Prizes and Betting. 

Operators require prior federal authorization, while advertising and responsible gambling requirements form part of the regulatory framework.

The cultural debate follows broader scrutiny of gambling-related harm. Brazil introduced a centralized self-exclusion system that can block consumers from all federally authorized betting platforms and prevent targeted advertising, while the Ministry of Health launched a national campaign in July directing people experiencing gambling problems toward public mental health services.

In July, Brazil's Ministry of Health launched a nationwide online betting harm-prevention campaign alongside access to mental health support through the public health system, forming part of wider Government efforts to address gambling-related risks.

Good to know

Superbet said it has spent almost BR150m on cultural sponsorships across 2025 and 2026, including events in Rio de Janeiro and São Paulo

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