Brazil’s Senate has approved the Committee-approved provisional measure allocating a share of licensed betting operators’ revenue to the Federal Police Fund (Funapol).
That further expanded the list of public initiatives financed by the regulated gambling sector.
The measure, which now only awaits presidential sanction, establishes that fixed-odds betting operators will contribute up to 3% of their GGR to the fund after taxes and player winnings have been deducted.
The contribution will not begin immediately, however, with a gradual transition starting at 1% before reaching the full 3% rate in 2028.
According to the approved text, the additional resources will be used to strengthen public security by funding equipment upgrades for the Federal Police, paying overtime and extraordinary duties, and covering healthcare plans for officers.
The legislation also allows Brazil’s Ministry of Justice and Public Security to extend healthcare coverage financed through the fund to members of the Federal Highway Police and the Federal Penal Police.
During the debate, Senator Izalci Lucas acknowledged the social concerns surrounding betting.
“Ideally, betting would not exist, because even the highest percentage isn't worth it. The damage caused by betting is really significant. So, now that it's regulated, it's very important to allocate a portion of those resources to healthcare, security, and all those other areas. Because any percentage won't recover what will be spent on healthcare in relation to that,” he said.
Recently, Brazil’s Federal Revenue Service reported that tax collection from licensed operators reached BR4.5bn ($807m) between January and April, suggesting the regulated market generated approximately BR12.2bn in revenue during the first four months of the year.
Brazilian senators, consumer advocates and public-sector representatives have recently renewed calls for tighter restrictions on betting advertising, particularly involving digital influencers, athletes and football sponsorships
