Brazilian sports entities oppose diversion of betting taxes to security funds

The Brazilian Olympic Committee (COB) and the Flamengo sports club have expressed opposition to a proposed constitutional amendment known as the ‘PEC da Segurança’. The amendment, approved by the Chamber of Deputies, seeks to redirect approximately R$ 530 million from sports funding to the National Public Security Fund (FNSP) and the National Penitentiary Fund (Funpen).

The reallocation involves diverting 30% of the revenue generated from betting companies (bets)—after taxes and operational expenses—away from the National Council of Sports Committees (CNCE). The COB warns that this move could jeopardize preparations for the 2028 Los Angeles Olympics, noting that the direct impact on the committee could reach R$ 40 million, an amount equivalent to the funding required for the Youth Games.

Flamengo issued a statement supporting the strengthening of public security but argued that such improvements should not come at the expense of the sports ecosystem. The club emphasized that betting tax revenues are already an integral part of sports maintenance and development in Brazil. The proposal is now set to be analyzed by the Senate, with various lawmakers suggesting amendments to protect sports financing.