Brazil drops proposed sports betting deposits tax
The proposed CIDE-Bets measure has been removed from the future Raul Jungmann Law.
Brazil.- The Chamber of Deputies has passed Brazil’s Anti-Faction Bill (PL 5582/25) without the proposed 15 per cent tax on sports betting deposits. The measure, known as CIDE-Bets, was removed from the final text, which will now advance for presidential approval. It will be enacted as the Raul Jungmann Law, in tribute to the former Minister of Public Security.
The controversial sports betting deposits tax would have been directed to the National Public Security Fund. The bill’s rapporteur, Representative Guilherme Derrite, had argued in favour of keeping the tax, saying it would secure funding for intelligence, suppression of organised crime and prison management, but the house plenary adopted an amendment from Congressman Doutor Luizinho that eliminated the provision.
The legislation’s main objective is to target organised crime. It defines the legal characteristics of racketeering and how it is used by organised gangs and militias. The most serious offences, particularly those deemed to constitute “structured social domination”, will carry prison sentences from 20 to 40 years.
The Instituto Brasileiro de Jogo Responsável (IBJR) had called for CIDE-Bets to be separated from the bill, arguing that lawmakers in favour of additional taxation should introduce a specific bill to debate.
House speaker Hugo Motta confirmed that consensus was reached to move the bill forward without the betting tax. He said taxation of sports betting should be debated separately and criticised frequent proposals to change the tax rates for a regulated sector that only launched last year. “We defend legal certainty. There’s no way to change the tax rate every month for any sector, as this removes the planning capabilities of any company.”
A new report estimates that up to 51 per cent of Brazil’s betting market operates illegally, potentially costing the country as much as R$10bn ($2bn) in lost tax revenue annually. The study, prepared by the Esfera Institute, warned that high compliance costs for licensed operators may benefit unregulated platforms, allowing them to offer better payouts.
Under Law 14.790/23, licensed fixed-odds betting operators in Brazil are currently subject to a 12 per cent tax on Gross Gaming Revenue (GGR), plus corporate income tax and social contributions, municipal service taxes where applicable and licensing and compliance costs. Lawmakers rejected a government proposal to double the GGR rate to 24 per cent this year but adopted a phased increase of 1 per cent a year to 15 per cent by 2028.
