Brazil: Chamber approves anti-crime bill and excludes new tax on sports betting

The approved text strengthens instruments to combat organized crime, increasing penalties and introducing stricter mechanisms for investigation and asset recovery, while removing from the bill the provision creating the Contribution for Intervention in the Economic Domain (CIDE) on bets, which had been included during the legislative process.

Legal certainty for the regulated market

During the analysis of the proposal, the rapporteur, Congressman Guilherme Derrite (PP-SP), incorporated into the text the creation of a 15% CIDE on fixed-odds betting, which would have been in effect until the implementation of the Selective Tax provided for in the tax reform scheduled for 2027. The revenue would have been allocated to funding public security policies.

However, through a separate amendment approved in plenary, the Chamber removed the new tax from the bill. Provisions related to the settlement of taxes allegedly owed by betting companies over the past five years were also withdrawn, as well as measures establishing additional financial oversight mechanisms specific to the sector.

As a result, any potential tax changes involving betting operators will have to proceed through a separate bill, avoiding immediate alterations to the operating conditions of companies already duly licensed.

For the international gaming and betting industry, the decision signals regulatory predictability at a time when the Brazilian market is consolidating. Maintaining the current rules contributes to legal stability, a factor considered essential for investments, commercial partnerships, and the responsible expansion of operations in the country.

Political debate and sector impact

The removal of the betting tax generated criticism from part of the government coalition, which had defended the creation of the contribution as a funding source for combating organized crime. Lawmakers argued that the sector could contribute more directly to financing public security initiatives.

On the other hand, market representatives viewed the exclusion of the provision as a measure that prevents additional tax burden during a still recent regulatory implementation phase.

With the conclusion of the vote and the submission of the text for presidential sanction, the focus of the bill remains on tightening penalties and strengthening legal mechanisms against criminal organizations, without imposing new immediate tax obligations on sports betting operators.

For the gaming sector, the outcome reinforces the importance of ongoing institutional dialogue and the development of a stable, transparent, and sustainable regulatory framework in Brazil.