Brazil’s betting sector has received temporary relief after politicians delayed a vote on the controversial CIDE-Bets measure. This measure would impose a 15% tax on player deposits.
The vote on the Antifaction Bill (PL 5,582/2025), endorsed by both the government and opposition, was postponed until 2026 during a Monday meeting. Last week, the Senate plenary approved the bill, which would direct tax revenues to the National Public Security Fund. It is projected to generate around BRL30 billion ($5.5 billion) annually to fill government budget gaps.
The bill also aimed to reintroduce the RERCT Litígio Zero Bets measure. This measure requires operators to pay a 15% retrospective tax on pre-regulation activities from 2018 to 2024. Workers’ Party leader Lindbergh Farias described the delay as necessary for further debate, calling the topic “controversial.”
Deposit Tax Sparks Sector Concerns
The CIDE-Bets tax has drawn sharp criticism from the Brazilian Institute of Responsible Gaming (IBJR), which warned it could give illegal operators a major competitive advantage. The IBJR highlighted that a 15% tax reduces the value of a BRL100 deposit to BRL85 on licensed platforms. Meanwhile, black-market operators can still offer the full amount, incentivizing migration to illegal sites.
The institute also questioned the feasibility of the projected BRL30 billion annual revenue. They noted that the regulated market currently generates roughly BRL36 billion. This makes the target mathematically unrealistic and potentially undermines formal sector sustainability.
Colombia’s experience serves as a cautionary example. A 19% tax on player deposits introduced there in February led to a 30% drop in online GGR, according to the Colombian Federation of Gaming Entrepreneurs (Fecoljuegos).
Additional Measures and Delays
The postponement comes amid further challenges for Brazil’s legal betting sector. PL 5,473/2025 was approved by the Senate’s Economic Affairs Committee on 2 December. It proposed a gradual tax increase for operators—from 12% currently to 15% in 2026–2027 and 18% in 2028.
The bill was set to move to the Chamber of Deputies for final approval, but an appeal secured enough signatures to trigger additional Senate analysis. Consequently, it is now unlikely to advance before the government recess later this month.
