Senate Committee Preserves Betting Revenues for Brazilian Sports

After being eliminated from the latest draft of Public Security PEC 18/2025 by the Senate’s Constitution and Justice Committee (CCJ), a mobilization by the Brazilian sports organizations has resulted in an important step in conserving the betting-linked revenue assigned to sports.

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The measure included in the proposal passed in the Chamber of Deputies would have directed 30% of the income generated by fixed-odds betting to the National Public Security Fund (FNSP) and National Penitentiary Fund (FUNPEN), respectively. By its elimination, an estimated loss of about R$500 million per year would be avoided from the sports budget of the national government.

Article 139 Removed From the Proposal

The proposal for the redistribution of betting revenue was strongly opposed by the new report prepared by Senator Rogério Carvalho (PT–SE). The decision keeps the allocation in place as per Law No. 13.756/2018, avoiding the possibility of a drastic cut in funding for the sports sector.

The previous proposal would have affected the distribution of the resources without having undergone adequate discussion, said Carvalho, who indicated that public security has other funding sources. The sports market believes the current distribution is crucial to support athlete development, grassroots training, local sports events and the participation of Brazilian teams in international events.

Sports Organizations Mobilize Against the Cuts

The Brazilian Club Committee (CBC) and the National Confederation of Clubs (FENACLUBES) spearheaded the campaign to save the funds, along with a number of large sport organisations. As part of the mobilization, dubbed “Mourning for Sport,” the financial impact studies and the meeting with government leaders and senior officials were conducted.

The Brazilian Olympic Committee (COB), Brazilian Paralympic Committee (CPB), Brazilian Committee of Paralympic Clubs (CBCP), Brazilian School Sports Confederation (CBDE), and Brazilian University Sports Confederation (CBDU) were also part of the initiative. Their basic contention was that there should not be a shortfall in available resources for existing social and sports policies to implement a more robust public security policy.

CBC and FENACLUBES Celebrate the Result

President of the CBC Paulo Maciel called the CCJ decision an important step, but said there will be more work to be done before the proposal will reach its final stage.

“This result preserves the conditions necessary for Clubs to continue advancing sports development. There is still much to do, but the transformation of recent years is real and results from investment, infrastructure and continuity,” Maciel said.

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CBC, FENACLUBES and the Clubs worked intensively, with a presence in Brasília, technical information and constant dialogue. The other organizations were also present in this defense, and now we need to maintain the mobilization to ensure this protection in Plenary.

Industry Highlights Broader Social Impact

FENACLUBES president Arialdo Boscolo also noted the size of the club sector and the possibility of its impact in terms of not receiving funding. It is an organization that represents over 11,000 clubs that create jobs and offer services and activities in the community in Brazil, explains Boscolo.

“FENACLUBES brought to the debate the reality of more than 11,000 Clubs, which generate jobs, move cities and carry out important daily work for society. We acted alongside CBC and the Clubs because we understand the impact this reduction would have on the ground,” Boscolo said.

“The CCJ’s decision is an important achievement, reinforced by the support of the other sports organizations, but the work continues until the vote is concluded,” he added.

Next Step Is the Senate Plenary

The withdrawal of Article 139 is a major win for the sports industry, but it’s not the end of the story. The PEC needs to pass through the Senate’s legislative process before legislators make a final decision.

Sports groups will thus look to keep pressure on to ensure that the existing allocation of betting revenues does not change in the final vote. The issue has raised awareness of the sector to the value of betting revenues as a proven funding source for Brazil’s overall sports development system.

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Source: iGaming Brasil