Brazil’s Senate approves Anti-Faction bill with new 15% tax on online betting deposits

Brazil’s Senate has unanimously approved the Anti-Faction bill creating a 15% CIDE tax on deposits to online betting platforms, with revenues earmarked for the National Public Security Fund and the fight against organised crime, in a move the industry warns could drive players to the black market.

Brazil’s Senate plenary has approved the so-called Anti-Faction bill, establishing a new legal framework for combating organised crime and creating a fresh layer of taxation on the country’s fast-growing online betting sector. The bill was passed unanimously on Wednesday 10 December, shortly after winning backing from the powerful Constitution and Justice Committee (CCJ), and now returns to the Chamber of Deputies after senators amended the original proposal submitted by the Executive.

At the heart of the text is the creation of “CIDE-Bets”, a Contribution for Intervention in the Economic Domain applied at a rate of 15% on transfers made by individuals to licensed betting platforms. Unlike the existing 12% tax on gross gaming revenue, this levy hits the deposit itself rather than operator profit. According to estimates cited by the rapporteur, Senator Alessandro Vieira (MDB–SE), the measure could generate around R$30bn (about US$5.5bn) per year once fully implemented.

All proceeds from CIDE-Bets will flow into the National Public Security Fund to finance investments in policing, intelligence and the prison system, directly linking the rapid growth of the betting market to new anti-crime resources. The contribution is designed as a temporary instrument and will remain in place only until the “Selective Tax” created under Brazil’s broader tax reform is fully operational, at which point its structure may be revisited. The bill also introduces a one-off regularisation window for unlicensed betting operators, which could bring in an extra R$7bn if they settle past obligations and migrate into the regulated system.

Industry bodies have reacted sharply, describing the new tax as “yet another blow” to licensed sportsbooks on top of already high fiscal and compliance costs. The Brazilian Institute for Responsible Gaming (IBJR) argues that taxing deposits at 15% effectively makes every R$100 worth only R$85 on regulated platforms, while illegal offshore sites will continue to accept the full amount, creating a powerful incentive for players to move to the grey and black markets. Critics warn that this could undermine channelisation and paradoxically strengthen the very criminal groups the bill is meant to fight.

Supporters within government counter that the new levy is essential to ring-fence long-term funding for public security and to close loopholes used by criminal factions and militias, with the Anti-Faction framework also toughening sentences, tightening progression rules and extending investigative powers against organised crime structures. As the bill heads back to the Chamber, operators, state governments and public-security officials will be lobbying hard over the final balance between revenue, enforcement and the competitiveness of Brazil’s regulated betting market.