Brazil's Senate has unanimously approved legislation on December 10 that introduces a 15% tax on deposits made to online betting platforms, creating one of the strictest fiscal measures targeting the gaming industry in Latin America.
The 15% Cide-Bets tax is deducted directly from player deposits, meaning the cost is carried by bettors rather than operators.
The bill, which passed with 64 votes, now returns to the Chamber of Deputies for final approval after incorporating significant amendments.
The new tax, called the Contribution of Intervention in the Economic Domain on Fixed-Odds Betting (Cide-Bets), is projected to generate up to BR$30bn ($5.8bn) annually for the National Public Security Fund. Under the approved framework, at least 60% of collected revenues will be distributed to state governments for law enforcement initiatives.
The legislation also establishes enhanced criminal penalties for organized crime operations. Leaders of criminal factions and private militias face sentences of up to 60 years, with potential increases to 120 years in cases involving serious crimes committed with explosives or weapons.
The bill establishes a specific criminal classification for "criminal factions," with prison terms ranging from 15 to 30 years for those who promote, establish, finance, or participate in such organizations.
The Brazilian Institute for Responsible Gaming (IBJR) issued a strong statement opposing the measure. It argues that taxing player deposits at 15% creates a competitive disadvantage for regulated operators, as BR$100 deposited with licensed companies would yield only BR$85 in betting credits, while illegal platforms would offer the full amount.
The Institute stated that, according to research firm LCA, 51% of betting platforms in Brazil currently operate illegally, moving up to BR$78bn annually. The regulated sector, which represents 49% of the market, is expected to contribute BR$9bn in federal taxes in 2025.
The legislation also includes provisions for retroactive tax collection covering the past five years for federally regulated operators, raising sustainability concerns within the industry.
The FNI's November push for Cide-Bets seeked to channel betting revenue into social programs, while industry groups warned the 15% tax could drive players to illegal sites
