Brazil Allocates Betting Revenue to Federal Police Fund Under New Law

President Luiz Inácio Lula da Silva has signed a new law directing part of Brazil’s fixed-odds betting revenue to Funapol, the federal fund supporting police operations and personnel costs.

Brazil has changed the distribution of regulated betting revenue after President Luiz Inácio Lula da Silva signed Law No. 15,480 of 30 July 2026.

The law converts Provisional Measure 1,348/2026 and amends Brazil’s fixed-odds betting revenue framework. It directs part of the proceeds from regulated betting to Funapol, the Fund for Equipping and Operationalising the Core Activities of the Federal Police.

The transfer will be phased in gradually. Funapol will receive 1% of betting revenue in 2026, 2% in 2027 and 3% from 2028, while the operator share will temporarily adjust to 87% in 2026 and 86% in 2027 before returning to the standard 85% model.

The allocation applies after the deductions already provided in Brazil’s betting law, including prize payments and income tax. The remaining 12% of betting revenue continues to be distributed among other public policy destinations under Law 13,756/2018.

The new law also authorises the federal government to transfer up to R$200 million to Funapol in 2026 using free Treasury resources.

According to the Ministry of Justice and Public Security, the funds can support police operations, equipment, institutional capacity and health-related expenses for federal police personnel. The ministry also said the measure strengthens the state’s ability to combat organised crime.

Funapol will also be able to receive voluntary transfers from federal entities or international organisations linked to organised-crime programmes, as well as donations from domestic or foreign individuals and companies.

For Brazil’s betting market, the measure adds another political layer to revenue allocation. The industry is already operating under tighter advertising, tax and consumer-protection rules, while the Lula administration is also pushing a separate debate on restricting online casino games.

The law does not create a new betting tax, but it redirects part of the government’s existing betting revenue. That distinction matters for licensed operators, because the structure preserves the main regulated betting model while changing how public proceeds are distributed.

For the gambling sector, the signal is clear: betting revenue is becoming a broader public-policy tool in Brazil, tied not only to sport and social programmes but also to security, policing and enforcement capacity.