Brazil to fund Federal Police equipment with sports betting revenue
President Luiz Inácio Lula da Silva has taken a strategic step by signing Provisional Measure number 1,348 of 2026, which introduces significant changes to the destination of funds from fixed-odds betting. From now on, a portion of the revenue generated by this sector will be channeled directly to the Fund for the Equipping and Operationalization of Federal Police Activities, known as FUNAPOL. This decision represents a shift in resource distribution policy, as these revenues were originally projected to finance social security and the public health system according to regulations approved last year.
A gradual implementation scheme for the sector
The transfer of these resources will not be immediate or total; instead, a staggered scheme has been designed to allow both operators and the market to adapt without suffering an abrupt financial impact on their cost structures. During this first year, 2026, 1 percent of the revenue will go to the security fund, while the operating agent will retain 87 percent. For the next year, 2027, the quota allocated to the Federal Police will rise to 2 percent, and finally, from 2028, it will be consolidated at a fixed 3 percent, leaving the operator's margin at 85 percent. Although the measure has the force of law since its signing, it still requires ratification by the National Congress within 120 days to maintain its permanent validity.
Police welfare and new sources of capital
In addition to the direct redistribution from gambling, the new regulation expands FUNAPOL's powers to raise capital from other external sources, such as international transfers aimed at combating organized crime or donations from private entities and individuals, both national and foreign. A fundamental part of this budget will be allocated to the welfare of the agents themselves, specifically covering medical expenses and health programs for Federal Police officers. There is also the possibility that, under the supervision of the Ministry of Justice, these benefits may be extended to members of the Federal Highway Police and the Federal Penal Police, depending on the budgetary availability generated by the market.
The impact on the industry and regulatory stability
For the iGaming industry in Brazil, this move institutionalizes the sector's role as a fundamental pillar of state funding in critical areas of public administration. While this additional burden requires companies to meticulously review their operating margins in an already highly regulated and supervised environment, it also grants greater political stability to the activity by directly linking it to the operations of national security forces. With this measure, the Government seeks not only to modernize police equipment to face the challenges of transnational crime but also to ensure that gambling revenues have a direct impact on the security of Brazilian citizens.
Tags: Brazil, FUNAPOL, online betting, Brazilian Federal Police