Brazil has signed into law a measure allocating part of the Federal Government's revenue from fixed-odds betting to the federal police.
The law originated as a provisional measure, issued by the executive branch in April and approved by Congress in July. It reallocates part of the Federal Government's betting revenue to cover health costs for Federal Police personnel and compensation for extraordinary duty.
The revenue transfer will be phased in over three years, rising from 1% of betting revenue in 2026 to 2% in 2027 and reaching 3% in 2028. Separately, the law allows the Federal Government to transfer up to BR200m ($37m) to Funapol before the end of 2026, drawn from unallocated Treasury funds.
Funapol finances Federal Police operations. A 2022 law increased the cap on fund spending for per diem and indemnity payments from 30% to 50% of its resources. The new law removes that cap entirely and expands eligible spending to include health cost reimbursement and extraordinary duty pay.
Beyond betting revenue, Funapol also draws on voluntary transfers from federal entities or international bodies tied to organized crime programs, along with donations from individuals and companies, domestic or foreign.
The legislation amends both Complementary Law No. 89 of 1997, which established Funapol, and Law No. 13,756 of 2018, which governs fixed-odds betting in Brazil. The changes strengthen funding for the Federal Police without increasing the tax burden on betting operators, while social security programs previously supported through the allocation will continue to receive funding from other federal sources.
The law extends health cost coverage to officers of the Polícia Rodoviária Federal and Polícia Penal Federal, though extraordinary duty pay for those forces will require separate legislation
