Brazil’s Chamber of Deputies has approved the Security PEC in its second round of voting, a constitutional amendment that includes provisions affecting how revenue from the country’s regulated betting sector is distributed.
The proposal passed with 461 votes in favor and 14 against and will now move to the Federal Senate for further consideration.
Among its provisions, the amendment establishes that part of the funds generated by fixed-odds betting operations will be redirected to Brazil’s National Public Security Fund and the National Penitentiary Fund.
The allocation will be implemented gradually between 2026 and 2028, starting at 10% and increasing annually until reaching 30% of the applicable revenue.
Once the threshold is reached, the proportion will remain permanent.
However, the calculation will be applied after several deductions. Prize payouts, income tax collected on winnings and the operators’ gross revenue will be excluded before determining the amount to be allocated to the security funds.
During earlier discussions of the amendment, the main official in the case, Deputy Mendonça Filho, had proposed a 6% increase in taxation on betting companies.
That proposal was later removed from the final version approved by lawmakers.
Separately, Brazil has continued to adjust the fiscal framework surrounding its regulated betting market.
In another recent legislative development, President Luiz Inácio Lula da Silva sanctioned a law that introduces a progressive increase in taxation on operators as part of efforts to support public finances and social security programs.
As a result, the PEC does not introduce additional taxation for operators. Instead, it modifies how existing betting-related revenues are distributed across Government programs.
From 2026, 1% of operators’ revenue will be allocated to social security, rising to 2% in 2027 and reaching a cap of 3% in subsequent years
