TLDR Brazil’s federal government is reviewing a plan to stop betting firms from using Rouanet Law-funded cultural projects for branding. The Ministry of Culture is discussing the idea with other government ministries before deciding on a legal path. Betting companies currently make up a small share of funding for Rouanet Law projects compared to other sponsors. Any new rule would not affect deals that are already in place. The plan comes as President Lula steps up public criticism of the betting industry ahead of the October election.
Brazil’s government is looking at ways to stop betting companies from using cultural sponsorships to promote their brands. The idea centers on projects that receive money through the Rouanet Law, a tax incentive program created in 1991.
Under this law, companies get tax breaks when they fund approved cultural projects. Betting firms have started using these sponsorships to get their names in front of the public.
Brazilian outlet JOTA reported that President Lula da Silva is weighing two paths forward. He could issue a presidential decree, or push for a change in the law itself.
Officials Debate How to Apply the Rule
The Ministry of Culture is leading early talks on the issue. Thiago Rocha, the secretary in charge of promotion and incentives for culture, said the legal team is still figuring out the right approach.
Rocha explained that a single ministry probably cannot create a rule that targets one type of business. That means other parts of the federal government will likely need to weigh in too.
The goal is not to stop betting companies from funding culture altogether. Instead, officials want to prevent cultural events from turning into ads for betting brands.
Government data shared with JOTA shows betting firms are not the biggest sponsors under the Rouanet