The Brazilian Senate Plenary approved a provisional measure on July 8, 2026, that redirects a larger portion of gambling tax revenue to federal police operations. The legislation now awaits final approval from President Luiz Inácio Lula da Silva.
Revised Tax Allocation Timeline
The updated framework increases the percentage of betting taxes directed to the Fund for the Equipping and Operationalization of Federal Police Core Activities, commonly referred to as Funapol. The fund’s share will rise from the current 0.5 percent to one percent in 2026. The rate will climb to two percent in 2027 and reach three percent starting in 2028.
The additional revenue will be allocated to police healthcare expenses. Once the provisional measure receives presidential approval, the revised tax distribution will take effect according to the established schedule. The Senate’s decision completes the legislative review phase for the funding adjustment.