Arthur Lira Proposes Tax on Illegal Betting Operators in Brazil

Brazil – August 14, 2025 – www.zonadeazar.com – Brazilian Chamber of Deputies President Arthur Lira (PP-AL) has backed a proposal to create a specific tax on illegal sports betting operators to expand Income Tax (IR) exemptions and boost revenue without impacting legal businesses.

“Cide-Bets” proposal

In a meeting with business leaders and representatives from 20 Parliamentary Fronts, the Cide-Bets was proposed — a 15% levy on sports betting aimed at offsetting IR exemptions for individuals earning up to R$ 5,000 per month and discouraging problem gambling.

The National Confederation of Industry (CNI) also suggested bringing forward the Selective Tax (“sin tax”) on betting houses to help maintain fiscal balance.

Crackdown on illegal betting

Lira highlighted that around 50% of Brazil’s betting market operates illegally, representing a major opportunity for tax revenue.

“If we tighten payment method controls to curb irregularities, we can increase revenue without taxing company profits and dividends,” Lira said.

Legislative context and 90-day rule

While the tax increase is not in the report approved by the special commission in July, it is included in a Provisional Measure sent in June. Lira suggested these points could be added to the Income Tax Bill, noting that to take effect in 2026 it must be approved by the end of September due to the 90-day rule (noventena), which provides a transition period before certain taxes can be enforced.

Editó: @_fonta www.zonadeazar.com