President Lula praises approval of constitutional amendment which will divert gambling revenue to public security in Brazil
President Lula praises approval of constitutional amendment which will divert gambling revenue to public security in Brazil
President Luiz Inácio Lula da Silva took to social media to celebrate the approval of the Security PEC (Proposed Constitutional Amendment) in the Chamber of Deputies. According to Lula, the states will have more budget for public security, with resources coming from betting revenues in Brazil.
The head of government thanked the Speaker of the House, Hugo Motta and the other deputies for approving the proposal in the House. The text was voted on last week. Lula also said that the Senate will be sensitive to the importance of the proposal, in an indirect request for the senators to also approve the project quickly.
“With the Unified Public Security System guaranteed in the Constitution, States, municipalities, and the Union will have better conditions to act in a coordinated, efficient, and organized way, just as they do today in the SUS (Brazilian Unified Health System).
“And they will have more budget for this, with resources coming from Bets, (betting)” Lula said.
The Chamber of Deputies approved, in a second round of voting, the Public Security Amendment (PEC 18/25), which aims to improve the integration of security agencies and guarantee more resources for the sector. Approved with 461 votes to 14, the proposal will be sent to the Senate. The bill diverts revenue from betting in Brazil to other funds rather than raising taxes on the sector.
The approved text provides for the allocation of money raised from betting to the National Public Security Fund (FNSP) and the National Penitentiary Fund (Funpen).
Gradually, 10% of the funds raised from these bets will be allocated to these funds between 2026 and 2028, until reaching a total of 30%, with that amount remaining the same after that.
However, before calculating this reserve, the total amount collected must be reduced by the prize money, the income tax on those prizes, and the gross profit of the operators.
This does not raise taxes on operators; instead, it cuts by 30% the portion allocated to other institutions—including the FNSP—already included in the current distribution, which also impacts social security and the Ministries of Sport and Tourism.
In relation to the previous version of the PEC presented to the special committee, Mendonça Filho abandoned the proposal to increase taxation on these betting houses by 6%.
The Constitutional Amendment establishes a framework for integrating and coordinating Civil and Military Police and Municipal Guards at the federal, state, and local levels via the Unified Public Security System, increasing the federal government’s involvement in policy formation and anti-organized-crime efforts.
It also widens the authorities of the Federal Police, Federal Highway Police, and Municipal Guards and places national security funding on a constitutional footing to ensure specific resources.
