Brazilian Bill Proposes Directing Half of Betting Tax Revenue to Philanthropic Hospitals

Brazilian federal deputy Pinheirinho has presented a piece of legislation to ensure that a large share of tax collection from online betting is directed toward Brazil’s healthcare sector.

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By introducing Bill No. 2.476/2026, the member of Congress suggests reallocating 50% of the total betting tax revenue to philanthropic hospitals and Santa Casas across the country.

The proposed bill seeks to revise the existing rules related to the distribution of tax revenues from Brazil’s regulated sports betting market. According to Bill No. 2.476/2026, resource allocation would be based on certain technical criteria for distribution to ensure proper resource management.

Distribution Would Favor Public Healthcare Units

The proposed legislation suggests taking into account certain aspects of resource distribution, including access to healthcare services between different regions, number of treatments administered, and the efficiency of hospitals’ operations concerning patients’ needs.

Healthcare institutions providing most of their assistance via SUS programs would have priority in the distribution process.

Moreover, the bill may also favor institutions in municipalities experiencing an acute lack of medical facilities or having financial problems. Supporters of the bill believe that philanthropic hospitals remain an integral part of Brazil’s health system despite numerous financial challenges and restrictions.

Upon the adoption of the law and the signature of the President of Brazil, the Executive Branch will be obligated to regulate the entire process within 90 days.

Restrictions on Fund Usage Established

The proposed bill includes a set of regulations related to using funds from online betting revenue. According to the proposed amendment, money received as betting tax would be used exclusively for patient treatment, buying medicines and medical supplies, and infrastructure development of hospitals.

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However, it would not be possible to allocate any part of the money to cover outstanding financial obligations unrelated to the healthcare sector. This way, supporters of the initiative claim that this rule will allow for better focus on improvements in patient assistance, quality of medical services, and capacity of hospitals instead of financial issues.

Lawmaker Cites Financial Crisis of Philanthropic Hospitals

According to Deputy Pinheirinho, existing rules of allocating betting taxes are to be revised due to the ongoing crisis in the philanthropic hospital segment.

According to available data accompanying the bill, more than half of all hospital treatments in Brazil are carried out with the participation of philanthropic healthcare units despite tight budget constraints.

It is reported that 70% of the total number of these hospitals operate at a loss, and their cumulative debt has already exceeded BRL 20 billion.

In contrast, regulated online betting in Brazil generates annual revenue of more than BRL 100 billion with total projected tax revenue of about BRL 12 billion each year.

The congressman hopes that reallocating half of this revenue to the healthcare sector would ensure higher financial stability for those institutions that complement the official SUS network. According to the bill, this solution could lead to a reduction in the waiting time for hospital bed placement and improvement of medical assistance in peripheral regions.

The bill is likely to attract controversy and spark discussion in Congress due to the ongoing debates on the proper distribution of betting tax revenue across public sectors.

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Source: iGaming Brasil