This Tuesday, the Brazilian Chamber of Deputies passed the "Anti-Crime Organization Bill," removing the controversial Article 14, which originally planned to impose a 15% tax on deposits made by players on licensed gambling platforms. This means that operators have temporarily dodged a bullet. In plain terms, there was a fight in the parliament, and it was decided to remove this hot potato first to ensure the smooth passage of the bill. Also removed was the clause imposing a 15% retrospective tax on gambling activities during the pre-regulatory period from 2018 to 2024. Want to know the latest developments in Brazil's gambling tax policy? PASA's official website continues to track regulatory dynamics in Latin America's largest market.
First, Tax Proposal Rejected: CIDE-Bets Not Implemented Yet
In December last year, the Brazilian Senate passed the original version of the "Anti-Crime Organization Bill," which introduced a tax provision called CIDE-Bets, proposing a 15% tax on deposits made by players on licensed platforms. However, during the review stage in the Chamber of Deputies, the amendment proposed by Congressman Dr. Luizinho was approved, completely removing Article 14.
Chamber of Deputies Speaker Hugo Motta explained that the removal of this clause was to "allow the bill to pass without the wide disagreements seen in the previous round of voting." The bill has now been approved and will be sent to President Lula for final signature.
Second, Opposition Voices: Lawmakers Criticize "Bowing to Gambling"
Although CIDE-Bets was removed, the political controversy it sparked is far from over. Several lawmakers fiercely criticized during the debate:
Federal Congressman Reimont: accused the right-wing of being "controlled by gambling companies"
Otoni de Paula: cited data showing that the gambling industry's monthly betting volume is 30 billion reais, with an annual volume of 360 billion reais, close to the GDP of São Paulo state (388 billion reais). "Is the Chamber of Deputies now giving gifts to gambling? Voting in favor is voting for the gambling lobbying group."
Jandira Feghali: "We need to tax gambling. Those who don't want to tax are standing with organized crime."
Congressman Lindbergh Farias estimated that if CIDE-Bets were implemented, it could bring an additional 30 billion reais in tax revenue to Brazil, to be used for the National Public Security Fund. He predicted that similar proposals might soon reappear as separate bills.
Third, Industry Perspective: Avoiding "Disastrous" Channelization Decline
After the Senate passed CIDE-Bets last year, legal expert Udo Seckelmann warned that this could lead to a channelization rate in the licensed market falling below 20%, which would be "disastrous." Plínio Lemos Jorge, chairman of the National Association of Games and Lotteries, shared the same view: "Over-taxing the regulated market often produces the opposite effect."
Currently, licensed operators are already facing multiple taxes:
GGR Tax: 13% in 2025, increasing by 1% each year until reaching 15% in 2028
Other Taxes: PIS/Cofins, municipal taxes, etc.
In this context, the temporary shelving of CIDE-Bets undoubtedly provides the industry with breathing space.
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This article is from "PASA-Global iGaming Leaders," a gambling industry news channel: https://t.me/pasa_news
Original in-depth gambling channel: https://t.me/gamblingdeep
Free data reports: @pasa_research
PASA Matrix: @pasa002_bot
PASA official website: https://www.pasa.news
