Brazil's Senate Sports Committee approved a bill this week that would redirect a portion of the tax collected from online sports betting operators to the country's military sports body, sending the proposal to the Economic Affairs Committee for further review.
The measure was authored by Senator Leila Barros, who also chairs the Sports Committee. It amends Law 13,756 of 2018, which governs the distribution of betting revenue, by carving out 1 percentage point of the share currently allocated to the Sports Ministry, calculated after prize payments and income tax, and redirecting it to the Comissão Desportiva Militar, the military sports commission under the Defense Ministry.
Barros said: “They are partners in high-performance sports. We have various athletes in international competitions, Olympics and world championships who have the support of the Armed Forces, whether in terms of infrastructure, logistics or even direct financial support.”
The bill’s reviewer, Senator Chico Rodrigues, issued a favorable opinion and kept the original text intact, arguing the measure would make the distribution of betting proceeds more equitable given that other segments of the National Sports System already receive dedicated percentages from that revenue stream.
Initial estimates place the reallocation at between BR0.30 ($0.05) and BR0.40 per BR1,000 collected.
The proposal would not raise the tax burden on operators. Under Law 14,790/23, operators pay 12% on gross gaming revenue in 2026, with the rate set to increase incrementally to 15% by 2028. Bettors pay 15% income tax on net winnings above BR28,000.
The bill will now move to the Economic Affairs Committee before any potential floor vote.
Senator Leila Barros, who authored the bill, is a former Olympic volleyball player and bronze medalist
