Brazil Committee Backs Plan to Funnel Up to 3% of Betting Revenue to Federal Police

Brazil's joint congressional committee on Provisional Measure 1348/2026 will vote June 30 on a report that carves out a rising share of fixed-odds betting revenue for the Federal Police, the latest move to turn the country's young betting market into a funding line for law enforcement. The report, written by Deputy Aluisio Mendes (Republicanos-MA), directs a portion of bets receipts into the Fund for the Equipping and Operationalization of the Federal Police's Core Activities, known by its Portuguese acronym Funapol. The committee, chaired by Senator Randolfe Rodrigues (PT-AP) and installed June 9, had originally scheduled the vote earlier and pushed it to 2:30 p.m. on Tuesday, June 30, in Plenary 6 of the Senate.

The mechanics are a phased ramp. The betting sector hands over 1% of revenue in 2026, 2% in 2027, and 3% from 2028 onward. On top of that, the measure authorizes the federal government to transfer up to R$200 million (about $37 million) to Funapol during 2026 to seed the fund's early operations. The text also opens Funapol to transfers from federal entities, international organizations, and donations from individuals and companies at home and abroad, all framed around combating organized crime, and it permits extraordinary-activity compensation for federal, highway, and prison police pending follow-on legislation. The provisional measure is already in force, but Congress has until August 19 to convert it into permanent law, and it still needs sign-off from the committee plus the full Chamber of Deputies and Senate.

How Brazil's betting tax pie already gets sliced

To gauge the size of what is being moved, start with the existing split. Under Brazil's 2023 betting law (Law 14.790/2023), licensed operators pay a 12% tax on gross gaming revenue, a rate set to climb toward 15% by 2028. That GGR tax is parceled out among a long list of beneficiaries rather than poured into general revenue.

Security already takes 13.6% through the FNSP, so MP 1348 is not opening the door to police funding for the first time. It is widening it, and routing money specifically to the Federal Police rather than the broader public-security fund. The numbers matter because the underlying base is now large. Brazil's regulated online market generated R$37 billion (about $7 billion) in GGR during its first full year in 2025, ahead of the roughly R$31 billion that had been projected, served by 79 licensed operators reaching about 25.2 million bettors. The Federal Revenue Service collected close to R$10 billion in taxes from the sector in 2025, and roughly R$2.5 billion more came in through one-off authorization grants. Against that base, a 3% slice of betting revenue is real money, and the R$200 million seed transfer for 2026 is a rounding error next to the R$10 billion already flowing to the treasury.

A pattern, and a precedent with an outcome

This is the second time in four months that Brazilian lawmakers have moved to redirect betting money toward security. In March 2026, the Chamber of Deputies unanimously approved a proposal from minister Mendonca Filho to send a growing share of betting tax proceeds to the FNSP and the National Penitentiary Fund (Funpen), starting at 10% of betting revenues across 2026 to 2028 and rising to a ceiling of 30%. That measure was pitched as a way to fund a prison system that a 2023 Supreme Court ruling labeled an "unconstitutional state of affairs," and like the current report it reshuffled distribution without raising the operator tax burden. The outcome there set the template: a unanimous lower-house vote, no new operator levy, and security funds as the named winners. MP 1348 follows the same script with the Federal Police as beneficiary.

The timing is not coincidental. On June 19, President Lula signed Decree 13,033/2026, which lets the government freeze and pursue forfeiture of accounts held by unlicensed fixed-odds operators and channel confirmed proceeds into the FNSP. The same day, the Federal Revenue Service ran Operation Conto da Sorte alongside state prosecutors, executing 14 search-and-seizure warrants in Pernambuco, Ceara, and Sao Paulo against a R$50 billion illegal betting scheme tied to 37 companies, with a court freezing up to R$145 million in assets. Funding the Federal Police off the back of legal betting revenue is the financial counterpart to that enforcement push: the licensed market pays for the policing of the unlicensed one.

For operators and affiliates, the practical signal is that Brazil's effective cost of doing business keeps drifting upward even when the headline GGR rate holds. The 12% tax is already scheduled to reach 15% by 2028, a separate fight has floated taxing player deposits, and these earmarking measures add political pressure to keep the base broad. None of MP 1348's percentages land on operators directly, since the money comes out of the government's existing share. But every reallocation that ties betting revenue to popular causes such as policing and prisons makes the tax harder to ever cut and easier to raise, which is the durable read for anyone modeling Brazilian margins. Affiliates marketing licensed brands gain a cleaner contrast against black-market sites now being frozen by decree, a point already visible in Colombia's gambling tax fights across the region.

What happens next is procedural. After the committee votes June 30, the report moves to the floor of both houses, where deputies and senators decide final approval before the August 19 deadline. Only with full congressional sign-off does the new Funapol allocation become permanent law.