Brazil Delays Vote on Controversial Gambling Deposit Tax

Brazil’s fast-growing betting industry has been granted a temporary reprieve after lawmakers agreed to postpone a vote on a highly contested tax proposal that would levy a 15% charge on player deposits. The decision delays until 2026 a measure that has sparked intense debate over its potential impact on the regulated gambling market and government revenues.

The postponed legislation, known as the Antifaction Bill (PL 5,582/2025), includes the creation of the so-called CIDE-Bets tax, which would apply to deposits made by players on licensed betting platforms. Although the bill was approved by the Senate plenary last week, political leaders from both the governing coalition and the opposition agreed on Monday to defer further consideration.

Workers’ Party leader Lindbergh Farias said the issue required deeper scrutiny. “It’s a controversial topic that requires more debate,” he stated, reflecting concerns within Congress over the economic and regulatory consequences of the proposal.

 

Measure	Key Detail	Status	Impact
CIDE-Bets Tax	15% tax on player deposits	Vote delayed until 2026	Temporary relief for operators
PL 5,582/2025	Includes retrospective taxation	Further debate required	Industry sustainability concerns
PL 5,473/2025	Operator tax rises to 18% by 2028	Under Senate review	Long-term cost pressure

 

Revenue ambitions and retrospective taxation

Under the original plan, proceeds from the CIDE-Bets tax would be directed to Brazil’s National Public Security Fund. The government has estimated the measure could raise around BRL30 billion ($5.5 billion) annually, helping to close budget gaps amid fiscal pressures.

In addition to the deposit tax, the bill also sought to revive the RERCT Litígio Zero Bets mechanism, which would impose a 15% retrospective tax on betting operators’ activities conducted before the formal regulation of the sector, covering the period from 2018 to 2024. This provision has been particularly contentious among licensed operators, who argue it introduces legal uncertainty and undermines confidence in Brazil’s regulatory framework.

The Brazilian Institute of Responsible Gaming (IBJR) has been among the most vocal critics of the CIDE-Bets proposal. The trade body argues that taxing player deposits, rather than operator revenue, risks driving bettors away from licensed platforms and into the illegal market. “By taxing the bettor’s deposit at 15%, the state decrees that BRL100 is only worth BRL85 in companies that follow the law,” the IBJR said in a statement. “In the black market, however, the same BRL100 is worth the full amount. This is a direct incentive to migrate to the illegal market.”

The IBJR also questioned the government’s revenue projections, describing them as mathematically unrealistic. According to the institute, the formal betting market currently generates around BRL36 billion, making the expectation of collecting BRL30 billion annually in deposit taxes implausible without severely damaging the sector’s viability.

Critics of the measure have pointed to Colombia as a cautionary example. In February, Colombia introduced a 19% value-added tax on player deposits, a move that was followed by a sharp downturn in market performance. The Colombian Federation of Gaming Entrepreneurs (Fecoljuegos) later reported that online gross gaming revenue had fallen by approximately 30% in the months after the tax was implemented.

Industry stakeholders in Brazil argue that a similar outcome could undermine the objectives of regulation by shrinking the legal market and strengthening unlicensed operators.

 

It’s a controversial topic that requires more debate.

 

Broader tax pressures remain

While the postponement of the CIDE-Bets vote has eased immediate pressure, Brazil’s betting sector continues to face the prospect of higher taxation. Another bill, PL 5,473/2025, proposes a gradual increase in the tax rate on operators from the current 12% to 15% in 2026 and 2027, rising to 18% in 2028.

That proposal was approved by the Senate’s Economic Affairs Committee on 2 December but has been delayed after an appeal triggered further review in the Senate. As a result, it is now unlikely to advance before the government recess later this month.

For now, the delay of the Antifaction Bill provides temporary relief for operators and investors in Brazil’s newly regulated betting market. However, with multiple tax measures still under consideration, the longer-term fiscal and regulatory landscape for the sector remains uncertain.