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Brazilian President Luiz Inácio Lula da Silva has approved changes to the distribution of federal revenue from regulated fixed-odds betting, directing a share of proceeds to the Federal Police’s operational fund, Funapol.
The measure, introduced through Provisional Measure (MP) 1.348/2026, redirects part of the government’s share of betting revenue towards the Fundo para Aparelhamento e Operacionalização das Atividades-Fim da Polícia Federal (Funapol), which finances equipment and operational activities for the Federal Police.
The change does not increase the percentage of revenue retained by betting operators. Instead, it reallocates funds previously assigned to other public areas, including health, social assistance and Social Security.
Under the new framework, Funapol will receive a gradually increasing share of betting revenue, beginning at 1% in 2026, rising to 2% in 2027, and reaching 3% from 2028 onwards. The percentages apply after the payment of prizes and deduction of income tax.
The provisional measure also authorises the federal government to contribute up to R$200 million to Funapol in 2026.
According to the Senate’s legislative summary, the measure allows Funapol resources to be used to strengthen operational capacity, including equipment investment and the reimbursement of certain health-related expenses for public security personnel.
It also opens the possibility of compensation for extraordinary activities carried out by federal police officers, federal highway police officers and federal prison officers, subject to future legislation.
The remaining government share of betting revenue will continue to be distributed among public bodies, social programmes and sports entities, including allocations to the National Public Security Fund and Social Security.
Brazil’s government has increasingly linked betting taxation to broader policy objectives, with authorities emphasising both revenue generation and enforcement capacity as the regulated market develops. The allocation to Funapol comes as Brazilian authorities continue efforts to combat illegal betting activity and financial crime associated with unauthorised operators.
MP 1.348/2026 amended the legislation governing Funapol and Brazil’s fixed-odds betting framework. As a provisional measure, it required congressional approval before becoming permanent legislation.
