Brazil.- States Advocate Allocating 20% of Betting Tax Revenue to Public Security

Brasil.-  December 10, 2025 – www.zonadeazar.com  State governors from Southern and Southeastern Brazil propose redirecting part of online betting tax revenues to reinforce public security and fight organized crime.

Overview
At the closing ceremony of the Cosud (Consórcio de Integração Sul e Sudeste) in Rio de Janeiro, governors from Minas Gerais, Rio de Janeiro, Paraná, Santa Catarina and Rio Grande do Sul publicly endorsed an appeal: up to 20 % of proceeds from the taxation of online bets should be allocated directly to state public-security budgets. The aim is to ensure stable funding for policing and reduce reliance on federal transfers.

Details / Context
The appeal was formalized in a letter signed by the governors, highlighting security as an absolute priority. Officials argued that the high volume of advertising and revenue from bets generates “astronomical” income — sufficient to justify a dedicated security allocation. They described the 20 % share as a fair return for the public interest.

The letter also recommends enhanced inter-state cooperation to fight organized crime, including shared intelligence data, operational coordination, asset recovery from criminal organizations, and reinvestment of confiscated resources into state police forces. Confiscated goods should remain with the states rather than federal funds, enabling more efficient local management.

Specific Subthemes
• Institutional / Public Security: The proposal reflects a push for greater fiscal autonomy for states and direct usage of betting-derived funds to strengthen local security.
• Regulatory / Financial: Implementation would require regulatory adjustments and dedicated budget allocations, redirecting a portion of betting tax revenues toward security.
• Inter-State Cooperation & Technology: The plan emphasizes building an integrated network among states for data sharing, coordinated operations against organized crime, money laundering, trafficking, and other serious crimes — funded by betting taxation revenues.

Future Outlook
If adopted, states backing the proposal could secure consistent funding to modernize law enforcement, invest in police technology, expand penitentiary infrastructure, and intensify efforts against organized crime. In the medium term, this model could set a precedent across Brazil — institutionalizing the redirection of betting-tax revenue toward public security nationwide.

🔗 Edited by: @_fonta www.zonadeazar.com