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Everyone wants a cut: Brazil's Congress debates new split of betting revenue

Lawmakers will vote on several proposals reshaping Brazil's gaming framework.

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Brazil’s Congress debates new split of betting revenue
Key Points
Bill 4331/25 would raise the share of betting revenue for public security from 13.6% to 31.6%
The sports and tourism sectors would see reduced allocations under the new model
Other proposals aim to double the Federal Government's share of betting taxes and tighten compliance rules

The Brazilian Congress is examining a packed agenda of betting and gaming legislation, with lawmakers focusing on how revenue from the regulated sector should be redistributed.

Brazil continues to dance with new legislative framework around gambling taxation, with this most recently tabled proposal, Bill 4331/25, having been authored by Deputy Yury do Paredão and analyzed by Captain Augusto. Indeed, the bill seeks to increase the share of fixed-odds betting proceeds allocated to public security from 13.6% to 31.6%.

Of this total, 12% would go to state and district security funds while 6% would support penitentiary funds.

To accommodate the increase, the proposal cuts the share of funds directed to sport and tourism. The sports allocation would fall from 36% to 25%, including a reduction in the Ministry of Sport's allocation, which would fall from 22.2% to 11.2%. Elsewhere, tourism would decrease from 28% to 19.5%, while the Ministry of Tourism's share would drop from 22.4% to 13.9%.

Beyond PL 4331/25, Congress will also review other bills that could reshape the sector's fiscal framework.

In the Senate, PL 5473/25, authored by Senator Renan Calheiros, seeks to double the Union's share of betting tax revenue from 12% to 24%, while other proposals look to tighten compliance obligations for operators and third parties involved in tax collection.

Together, these measures reflect growing political momentum to reorient Brazil's regulated industry toward stronger oversight and public benefit, whilst also indicating a growing appetite to rebalance beneficiaries using redistribution and enforcement to reach policy goals.

Good to know

The national Intelligence Agency would also receive 1.5% of betting revenue under PL 4331/25

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