Brazil weighs new 15% betting tax to fund prison expansion and strengthen public security

Brazil is moving forward with a proposal that could reshape its online betting market and redirect hundreds of millions of dollars toward the country’s public security system. A new 15% tax on wagers placed through online betting platforms has been incorporated into the Senate’s Anti-Faction Bill (PL Antifacção).

Under the proposal, the tax would take the form of a Contribution of Intervention in the Economic Domain (CIDE) applied specifically to bets placed on digital platforms. Revenue from the measure would be earmarked for prison expansion, improvements in penitentiary infrastructure and intensified operations against organized crime.

Supporters argue that the policy aligns a booming industry with urgent national priorities. Brazil’s betting market has grown rapidly in recent years, generating high transaction volumes and drawing increased scrutiny from lawmakers. Redirecting part of this revenue, they say, would help address overcrowded prisons and bolster security forces confronting criminal factions.

The proposal has sparked debate within the legal and political community. Critics warn that imposing a sector-specific CIDE may distort the online betting market, potentially driving operators or bettors toward offshore platforms. Others caution that tax increases introduced without broader regulatory adjustments could undermine the country’s recent progress toward a structured and transparent betting framework.

The Senate continues to review the Anti-Faction Bill, and further modifications are expected before any vote takes place. The discussion over the proposed CIDE highlights growing political momentum to link betting revenues with national security and justice system reforms.