Brazil will route a share of sports betting revenue to Federal Police funding from 2026

Brazilian President Luiz Inácio Lula da Silva signed a law on Thursday, July 30, that assigns part of fixed-odds betting revenue to Funapol, the fund that finances the Federal Police’s core equipment and operations. For sportsbooks and PSPs active in Brazil, the key point is simple: the betting take rate just got another claim on the same revenue pool.

1. The law creates a permanent funding mechanism for Funapol, with the transfer starting at 1% of fixed-odds betting revenue in 2026, rising to 2% in 2027 and reaching 3% from 2028. The calculation is made after paying out player prizes and after other legal obligations have been met.
2. The new allocation does not change the 12% already reserved by betting rules for social purposes. Instead, it comes out of the portion that previously belonged entirely to betting operators. In practice, that means operator economics tighten step by step as Funapol’s share increases: 87% for operators in 2026, 86% in 2027, and 85% from 2028, while social purposes remain at 12%.
3. The measure originated as Provisional Measure 1.348/26, issued by the executive branch in April 2026. The National Congress later reviewed and approved it as Bill 8/26, and after Lula’s signature it became law and entered into force officially.
4. The law also opens additional funding channels for Funapol. It may receive voluntary transfers from states, municipalities, the Federal District, and international bodies, as long as the money is used for programs against organized crime. Donations from individuals and companies, Brazilian or foreign, are also allowed.
5. From 2026, the executive branch may supplement Funapol with uncommitted funds from the National Treasury, up to a cap of 200 million reais (about 37 million dollars at current exchange rates). The law also allows the fund to cover medical expenses for Federal Police agents, including reimbursement of costs already incurred, subject to available budget.