Brazil: Betting Sector Avoids Super Tax In Key Vote At Chamber Of Deputies

Brazil.– February 26, 2026 – www.zonadeazar.com In a decisive late-night session, Brazil’s Chamber of Deputies approved the main text of the Anti-Faction Bill aimed at combating organized crime. The most impactful measure for the iGaming industry — the creation of the CIDE-Bets, an additional tax on online betting — was ultimately removed from the proposal, preventing a multi-billion-real fiscal burden on the regulated sector.

Overview

The CIDE-Bets proposal sought to introduce a new levy that could have generated around R$ 30 billion annually to fund public security initiatives. However, lawmakers — including members aligned with the federal government — agreed to withdraw the measure from the final text, arguing that it was not an immediate priority for the Executive and that its implementation would present operational challenges.

The decision was supported by the Speaker of the Chamber, while representatives from the Ministry of Finance had previously signaled technical and administrative difficulties in enforcing the new tax.

Heated debate in the plenary

The removal of the measure sparked strong reactions among several deputies, who highlighted that the proposal had previously been unanimously approved in the Federal Senate and questioned the loss of a potential funding source for public security.

Despite the controversy, the core Anti-Faction Bill advanced and was approved, maintaining its focus on tougher penalties for crimes linked to criminal organizations and on redistributing seized assets to states and security forces.

Key Topics

Taxation of iGaming in the legislative agenda
The outcome reflects the tension between the government’s need to increase revenue and the concern over maintaining the competitiveness of the regulated betting market.

Risks of excessive taxation
Higher tax pressure on operators or players could reduce the attractiveness of the legal market and unintentionally strengthen unregulated alternatives.

Balance between revenue and formalization
The debate highlights the challenge of increasing tax collection without undermining market traceability and the sustainability of licensed operators.

Future Outlook

Although the removal of CIDE-Bets represents short-term relief for the industry, the tax discussion is far from over. Congressional leaders are already considering a separate bill to define a specific and comprehensive taxation model for the betting sector.

The vote marks a pivotal moment in the relationship between Brazil’s iGaming industry and public policy, reinforcing the need to balance fiscal objectives with regulatory stability in a rapidly expanding market.

🔗 Edited by: @_fonta www.zonadeazar.com