Brazilian Congress Debates New Allocation of Betting Revenue for Sports and Public Security
The growing volume of tax payments made by operators from the regulated betting market in Brazil stimulates discussions in the Congresso Nacional do Brasil. After the betting sector was taxed throughout the entire 2025 and the beginning of 2026, the legislators propose to introduce initiatives to distribute revenues from this segment in favor of some sectors of public importance.
Official statistics showed that the federal government received BRL 3.4 billion in taxes from betting operators in the first quarter of 2026, which is a 123.7% growth compared to last year’s figures. In the past year, during the first full regulated betting year, the total amount of collected taxes amounted to BRL 9.95 billion.
The rapid growth of tax revenues from the betting sector makes debates about the distribution of betting-related resources and their destination grow even stronger.
Senator Proposes to Direct Resources to Support Military Sports Development Programmes
One of the proposals considered today involves amending Law 13.756/2018 via Bill PL 6.124/2025, which has already passed the Senate’s Comissão de Esporte (CEsp).
The amendment suggests transferring a portion of the betting sports revenue allocated to the Ministry of Sports to the Ministry of Defence for the purposes of supporting the development programmes related to military sports in Brazil. This proposal will be reviewed next by the CAE.
At the same time, another initiative proposes to establish a Federal University of Sports located in Brasilia, which has already been approved by the Chamber of Deputies and awaits approval in the Senate. The funding of this university will include resources from the sports betting sector.
Public Security Sector to Benefit from Betters’ Payments Too
In addition to investments in education and sports programmes, the Federal Government directs resources received from regulated operators to finance the programmes in public safety.
On 3 April, a provisional measure signed by the President declared that the amount of 3% of the total tax revenue from the betting sector must be transferred to the Fund for the equipment and operational support of the Federal Police (Funapol). This decision will be implemented gradually: 1% in 2026, 2% in 2027, and 3% in 2028 and further.
As Alex Rose pointed out: “The use of betting resources for the development of the Federal University of Sports shows how beneficial and structural the impact of the regulated betting market in Brazil can be.”
On the other hand, Nickolas Tadeu Ribeiro de Campos noted: “Operators of the legal betting segment not only create jobs, pay taxes but also direct huge funds to various sectors such as sports, culture, media, etc.”
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Expanding Economic Contribution to the Country
Data published by the industry also confirms the growing economic contribution of the regulated betting sector in Brazil.
For example, as per the statistics released by the Receita Federal, over BRL 1.1 billion in taxes were received in December 2025, which marks an increase of over 3,000% compared to December 2024. The basis of the taxation system includes a 12% tax on the Gross Gaming Revenue (GGR), along with the additional fees such as PIS and Cofins.
The study performed by the LCA Consultoria and commissioned by the Institute of Responsible Gaming (IBJR) revealed that the total tax load of this sector equaled 32% in 2025 and will reach up to 42% in 2033 after implementing reforms in the Brazilian Taxation Code.
“As one of the most taxed industries in Brazil, the regulated betting segment brings many benefits to society in terms of investing in education, sports and culture.” Bernardo Cavalcanti Freire pointed out.
Illegal Operators Still Control 51% of the Betting Market
However, despite the successful regulation process, problems connected with illegal betting operations are not resolved yet.
According to studies carried out by LCA Consultoria, illegal companies are still in control of 41% to 51% of the betting market in Brazil. At the same time, according to research conducted jointly with the IBJR, over 61% of Brazilian punters use the services of unregulated companies in 2025.
Daniel Fortune stated: “It is important to continue working actively on problem gambling prevention and public education campaigns, as well as fighting the unlicensed betting market that is operating illegally.”
Similar opinion was voiced by Cristiano Costa who emphasized the need to focus on protecting users’ interests when regulating the segment: “The sustainability of regulation directly depends on the balance between economic and user interests.”
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Source: iGaming Brasil
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