News

Brazil Government eyes betting tax revenue to fund security proposal

Lawmakers debate redirecting part of betting tax income as Congress prepares to vote on the Security PEC.

· 1 min read
Share this article
Follow us on Google
AI Summary
Sign in to listen
mendonca-filho.jpg
Key Points
Brazil’s Government is discussing redirecting part of betting tax revenue to fund public security policies
The proposal relates to tax changes approved last year that increased the betting tax rate from 12% to 18%
Debate over a referendum on reducing the criminal age of responsibility has created tensions ahead of the vote

Brazil’s Government is exploring the possibility of redirecting part of the country’s betting tax revenue to help finance public security initiatives as lawmakers prepare to vote on the Security PEC in Congress.

A PEC is a Proposal to Amend the Constitution in Brazil, representing the formal mechanism used by Congress to alter the nation's 1988 Federal Constitution. It requires an approval process involving a three-fifths majority vote in two rounds in both the Chamber of Deputies and the Senate. 

The discussion emerged during negotiations ahead of the vote on the constitutional amendment proposal, with government officials seeking ways to secure funding for expanded security policies without introducing a new tax.

Under the proposal being discussed, part of the revenue generated from the betting tax increase approved last year could be redirected to public security programs. 

According to estimates cited in discussions between lawmakers, the redirected portion of the tax could generate around BR5bn ($958m) per year for public security initiatives.

Currently, the revenue from betting taxation is directed to social security. 

Adjusting its allocation would require changes to how those funds are distributed but could provide the Government with a new source of financing at a time of fiscal constraints.

Government officials reportedly see the proposal as a potential way to address demands from state governors for additional resources to fund policing, technology and initiatives aimed at tackling organized crime.

The move comes after days of negotiation surrounding the report presented by the Senator Mendonça Filho, who also maintained in the text the possibility of a popular consultation on the age of majority.

The PEC is expected to be voted on first in a special committee before potentially moving to the chamber’s plenary later the same day.

Good to know

Brazil’s Senate Science and Technology Committee recently approved a bill that would ban advertising for fixed-odds betting and online gambling across the country

Reaction Board

News Analysis

View All
SiGMA World Themes: AI, Crypto and more

SiGMA World preview: AI, crypto and the event's biggest themes

Experts from all over the world and across the whole industry will gather in November to discuss some of the biggest topics in gambling.

5 min read • • By Patrick Fasolis
onlyplay

Gaming's next frontier: Rethinking UX, mechanics and player engagement

Onlyplay CEO Christina Muratkina speaks to Global Gaming Insider about shifting iGaming marketing trends, UX beyond mechanics, Onlyplay's recent rebrand and more...

6 min read • • By Will Underwood
bernardo anjl

Brazil: Government "betrayed" operators... but prohibition won't stop Brazilians betting

Bernardo Cavalcanti Freire, ANJL's Legal Counsel, believes the regulated industry must "acknowledge" its problems, but feels concrete data proves regulation is more effective than prohibition. In his eyes, the Brazilian market is "far from over."

7 min read • • By Tim Poole

In The News

View All