A Crucial Save for Brazilian Athletes: Understanding PEC 18/2025 and Article 139
Pressure from industry organizations secured a crucial victory to preserve the funds from betting companies that finance Brazilian sports. The Senate Constitution, Justice, and Citizenship Commission (CCJ) approved the report on Public Security Proposed Constitutional Amendment (PEC) No. 18/2025 this Wednesday (2), completely removing Article 139 from the text.
The Brazilian Senate’s Constitution and Justice Committee (CCJ) has removed a controversial provision from Public Security bill PEC 18/2025. The decision preserves betting-linked funding for the national sports sector, preventing an estimated annual loss of R$500 million (approximately $98 million USD). The exclusion averted a multi-billion-real cut that threatened the development of new athletes in the country. After being eliminated from the latest draft of Public Security PEC 18/2025 by the Senate’s Constitution and Justice Committee (CCJ), a mobilization by the Brazilian sports organizations has resulted in an important step in conserving the betting-linked revenue assigned to sports.
The Threat of R$ 500 Million in Betting Revenue Cuts
The original draft passed by the Chamber of Deputies sought to restructure the distribution of taxes collected from fixed-odds betting: 30% of betting revenues were to be redirected to the National Public Security Fund (FNSP) and the National Penitentiary Fund (FUNPEN). 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.
The major problem with this initial draft was that it preserved the operators’ profit margins while reducing social allocations, cutting off vital transfers to the confederations.
Senator Rogério Carvalho Rejects the Restructuring
The removal of Article 139, validated in the new report drafted by Senator Rogério Carvalho (PT-SE), prevents a hole estimated at around R$ 500 million annually in the national sports budget. The proposal for the redistribution of betting revenue was strongly opposed by the new report prepared by Senator Rogério Carvalho (PT–SE). Senator Rogério Carvalho opposed the cut in his report, arguing that public security initiatives already possess alternative funding streams.
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. Eliminating the clause maintains the allocation framework established by Law No. 13.756/2018, securing vital funds for athlete development and grassroots training. 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.
These funds are structural and essential for financing talent development, covering grassroots technical preparation, organizing local competitions, and ensuring the participation of Brazilian delegations in international tournaments. 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.
The “Mourning for Sport” Campaign: How the Industry Fought Back
The CCJ’s decision followed intense lobbying by the Brazilian sports community. The political coordination was led by the Brazilian Club Committee (CBC) and the National Confederation of Clubs (FENACLUBES), under the leadership of presidents Paulo Maciel and Arialdo Boscolo.
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 mobilization involved financial impact studies and meetings with government leaders, including cabinet ministers and the president of the Brazilian Olympic Committee (COB), Marco La Porta. Sports leaders presented impact studies to government officials to demonstrate the financial damage the cuts would cause.
They were joined by the Brazilian Olympic and Paralympic Committees. 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. Clube de Regatas do Flamengo also joined forces to demonstrate that strengthening security is essential, but not at the expense of existing social policies. 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.
The Financial Impact: What $98 Million Means for Local Clubs
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 president Arialdo Boscolo emphasized that these revenues are crucial for job creation and local community services.
“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 a significant achievement, bolstered by the support of other sports organizations, but the work continues until the vote is concluded,” he added.
Looking Ahead: The Final Senate Plenary Vote
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.
The CBC, FENACLUBES, and the clubs carried out intensive work, maintaining a presence in Brasília, providing technical information, and engaging in ongoing dialogue. The other organizations were also present in this defense. “Now, we need to maintain the mobilization to confirm the protection on the floor,” highlighted Paulo Maciel.
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. The sports industry must now sustain its lobbying efforts as the bill moves to the Senate Plenary for a final vote. 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.
Leo Falsafi is a digital marketing veteran and senior journalist at Virlan.co, where he covers the intersection of digital marketing, gaming, and breaking US trending news. With nearly two decades of hands-on experience in SEO and digital strategy, Leo has consulted for and scaled hundreds of companies. His deep industry roots allow him to deliver sharp, fact-checked insights and analysis on the trends shaping today's digital landscape.