Brazil: Government Regrets Betting Tax Setback
Brazil.– February 26, 2026 – www.zonadeazar.com Brazil’s Justice Minister acknowledges the loss of expected revenue after the CIDE-Bets tax was removed, but signals new alternatives to fund national security policies.
Overview
Brazil’s Minister of Justice expressed frustration over the removal of the proposed betting tax from the bill approved by the Chamber of Deputies, as the measure was expected to generate significant funding for public security.
Despite the setback, the government made clear that the betting industry remains a strategic source of potential revenue and that the discussion on sector taxation is far from over.
Background and context
The original proposal included the creation of a 15% CIDE-Bets levy on operators, with funds earmarked for the National Public Security Fund.
With the tax excluded from the approved text, the Executive now evaluates alternative mechanisms to finance security initiatives while maintaining fiscal responsibility.
According to the minister, taxation of the sector is still considered:
- appropriate
- necessary
- structurally relevant
but not the only available solution.
Industry impact
The statement sends three strong signals to the market:
The tax debate is not closed
Its exclusion from this bill does not mean the end of new fiscal proposals.
Betting remains on the government’s economic agenda
The sector continues to be viewed as a key contributor to public funding.
New regulatory instruments may emerge
Future constitutional or legislative initiatives could reintroduce the discussion in a different format.
Public security as the core narrative
The government’s discourse shifts the focus from taxation itself to the need for resources to:
- fight organized crime
- strengthen national security structures
This reframes the debate, placing the betting industry within a broader economic and security strategy.
Future outlook
For the regulated ecosystem, the scenario ahead is clear:
- fiscal pressure will continue
- institutional dialogue will be essential
- competitiveness and sustainability must be balanced
The sector is now firmly positioned as a strategic component in Brazil’s economic and security policy, and the topic is expected to return to the center of the legislative agenda in the near future.
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