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 Law right now. Other companies provide more funding overall.
Because betting money makes up a small piece of the funding pie, artists and cultural groups may not lose much if the rule goes into effect. Officials see this as a good time to set rules before betting sponsorships grow further.
No Impact on Current Deals
The report states that any new restriction would not apply to past agreements. Projects that already have a betting sponsor in place would be allowed to keep that deal.
Applications for the 2026 Rouanet Law cycle are due in October. If the government moves forward, the new rule would apply starting with the 2027 project cycle.
This timeline gives betting companies and cultural groups time to plan around the change. It also means no immediate disruption to ongoing projects.
The discussion comes as Lula has spoken out more against the betting industry in recent weeks. In August, he said he would not let betting companies keep operating without proof that they serve a social purpose.
Lula also said he has personally opposed the sector for a long time. His comments come as Brazil heads toward an October election, where he is running for a fourth term.
The Rouanet Law proposal is one part of a bigger conversation in Brazil about how betting companies advertise and operate. Officials continue to review the legal options before making a final decision on the sponsorship rule.
