Lula sanctions law allocating part of betting revenue to police

Lula sanctions law allocating part of betting revenue to police

Brazil's President, Luiz Inácio Lula da Silva, sanctioned a law that allocates a portion of federal revenue from sports betting to the Fund for the Equipping and Operationalization of the Federal Police's Final Activities, known as Funapol. According to the government, the measure stipulates that up to 3 percent of the funds collected by the Union through betting will be gradually allocated to the fund, with 1 percent in 2026, 2 percent in 2027, and 3 percent from 2028 onwards. These resources, which were previously directed to the social security system, will now primarily finance the healthcare expenses of Federal Police agents.

The new legislation is the result of the conversion into law of Provisional Measure 1.348/2026, through the conversion bill approved by Congress in early July. The sanctioned text does not create new taxes for betting operators but reallocates resources already included within existing revenue. In addition to funds from betting, the legislation authorizes the federal government to transfer up to 200 million reais from the National Treasury to the fund during 2026.

The modification occurs in a context of increasing federal revenue derived from the regulated betting market, which began operating under a new regulatory framework from 2025. Brazilian legislation already establishes different destinations for resources obtained through betting, including the health, education, sports, tourism, and public security sectors. The Minister of Justice and Public Security, Wellington Lima, stated that agents investigating criminal organizations, highway police, and federal penitentiary agents face daily risks and deserve decent healthcare, infrastructure, and working conditions.

Tags: Funapol, Brazilian Federal Police, Provisional Measure 1,348/2026, Wellington Lima