Brazilian Senate allocates 3% of betting revenue to Federal Police
The Brazilian Senate plenary approved Provisional Measure 1,348 of 2026, which allocates 3 percent of the revenue the government obtains from fixed-odds sports betting to the Fund for Equipping and Operating the Fundamental Activities of the Federal Police, known as Funapol. The regulation modifies the allocation of part of the sector's funds, which were previously directed to social security and will now primarily finance medical expenses for Federal Police agents.
The transfer will be implemented in a staggered manner, with 1 percent in 2026, 2 percent in 2027, and 3 percent from 2028 onwards. Additionally, the federal government was authorized to transfer up to 200 million reais, approximately 38.8 million dollars, to Funapol during 2026 using unearmarked resources from the National Treasury. As the proposal was altered during its processing in Congress, it must be sent to the President of the Republic for sanction. Before this measure, the fund already received 0.5 percent of the portion of betting revenue distributed among various public bodies.
Funapol was created by Complementary Law 89 of 1997 to finance the activities of the Federal Police. The original regulation allowed up to 30 percent of the fund to be allocated to travel expenses, a limit that was expanded to 50 percent in 2022 through Law 14,369, which also enabled other expenses such as compensation and medical assistance.
With the new provisional measure, this cap disappears, and new fundable concepts are incorporated, including reimbursement of health expenses and compensation for extraordinary activity. The text also authorizes the Ministry of Justice and Public Security to extend the financing of medical expenses to agents of the Federal Highway Police and the Federal Penitentiary Police. In addition to resources from betting, Funapol may receive voluntary transfers from states and international organizations linked to programs to combat organized crime, donations from national or foreign individuals and legal entities, and other income authorized by law.
The change also affects the destination of the tax increase. During the discussion of Complementary Law 224 of 2025, the government had proposed raising the tax burden on betting from 12 to 15 percent gradually between 2026 and 2028, and half of that additional increase was intended for programs to assist people with gambling problems. With the approval of the provisional measure, these additional resources will now be fully allocated to Funapol, with priority given to covering the health expenses of Federal Police agents.
Tags: Funapol, Brazilian Federal Police, Provisional Measure 1,348, Brazilian Senate