Brazil’s joint congressional committee has approved the text of MP 1.348/2026, advancing a measure that would redirect part of fixed-odds betting revenue to the Federal Police fund, Funapol.
The proposal, approved in the form of a conversion bill, will now be considered by the Chamber of Deputies before moving to the Senate.
Under the text, Funapol will receive 1% of betting proceeds in 2026, 2% in 2027 and 3% from 2028. The calculation applies after prize payments and income tax deductions.
The operator share remains unchanged at 85% of amounts collected, which must be used to cover operating and maintenance costs linked to fixed-odds betting and other betting games.
The measure is part of Brazil’s continuing effort to define how revenue from its regulated betting market should be divided.
Federal rules have tightened since the regulated market opened, with authorized operators required to use official domains and comply with licensing, tax, advertising and anti-money laundering obligations.
The proposed funding shift comes as betting proceeds become a larger fiscal issue for the Brazilian Government. Tax and industry revenue from betting have grown sharply during 2026, increasing political attention on how the sector’s proceeds should support public services, enforcement and consumer protection.
MP 1.348/2026 also authorizes the Brazilian Government to contribute up to R$200m to Funapol in 2026. Other potential sources include transfers linked to organized crime enforcement and donations from individuals or legal entities.
The fund may also be used to reimburse proven health expenses for Federal Police civil servants. The text allows compensation for extraordinary activities by federal police officers, federal highway police officers and federal prison officers, subject to a future law.
Rapporteur Deputy Aluisio Mendes said the measure does not create a negative fiscal impact because it reallocates existing revenue rather than creating new mandatory spending or raising taxes.
Mendes said: “Such a measure, by prioritizing the well-being and functional development of public security agents, acts as an investment in human capital.”
The committee rejected 110 amendments, including proposals considered unconstitutional, financially inadequate or lacking merit.
The vote follows wider scrutiny of Brazil’s betting market, including a Chamber of Deputies hearing on betting-related debt, mental health concerns and advertising exposure among older citizens.
MP 1.348/2026 remains in force while Congress considers it, but it must clear both plenaries to become permanent law
