Brazil’s lower house has approved the core text of a major anti-organized crime bill — but without the controversial betting tax that had rattled the regulated gambling sector.

The proposed levy, known as CIDE-Bets, was removed before the final vote in the Câmara dos Deputados, offering temporary relief to licensed operators.

CIDE-Bets Proposal Shelved

The Anti-Faction Bill (PL Antifacção) is designed to tighten the state’s grip on criminal organizations, primarily by targeting their financial structures. Initially, lawmakers had included a new tax on online betting companies as part of the funding mechanism.

The proposed CIDE-Bets would have:

  • Applied specifically to online betting operators
  • Raised an estimated R$30 billion annually
  • Directed funds toward public security programs

However, the provision was struck down before approval of the bill’s main body.

Why the Tax Was Removed

Behind the scenes, the betting levy lost political momentum.

Brazil’s Ministry of Finance — which oversees the Secretariat of Prizes and Betting — reportedly signaled that imposing a new sector-specific tax would present operational and administrative challenges.

Deputy Guilherme Derrite indicated that lawmakers agreed to debate gambling taxation separately in a dedicated bill, rather than attaching it to broader anti-crime legislation.

In practical terms, this means:

  • No immediate additional tax burden on betting operators
  • A delayed — not abandoned — fiscal debate
  • Continued uncertainty around long-term tax policy

Heated Exchanges in Congress

The removal of CIDE-Bets sparked sharp criticism during plenary discussions.

Deputy Lindbergh Farias openly opposed the exclusion, arguing that betting companies were being spared while the country faces mounting public security costs.

Farias noted that the Brazilian Senate had previously approved the measure unanimously and accused the Chamber of weakening a cross-party consensus.

Supporters of the removal, however, stressed that mixing sectoral taxation with criminal justice reform risked complicating both agendas.

Core Anti-Crime Measures Remain

Despite the controversy, the Anti-Faction Bill moves forward with its primary objectives intact.

The approved framework focuses on:

  • Cutting off financial channels used by criminal syndicates
  • Strengthening asset seizure mechanisms
  • Increasing prison sentences for organized crime members
  • Redirecting confiscated assets to state and federal authorities

The betting sector, therefore, escapes additional taxation for now — but remains under scrutiny.

Regulatory Context: A Market in Transition

Brazil’s betting industry has already undergone sweeping changes since the approval of Law No. 14.790/23, which formalized and structured the regulated market.

Operators are currently subject to:

  • Licensing requirements
  • Gross Gaming Revenue (GGR) taxation
  • Strict compliance and reporting rules

Adding a new R$30 billion tax layer could have reshaped the market’s economics just as it begins stabilizing.

What Comes Next for Betting Taxation?

The agreement to revisit betting taxation through a separate bill suggests that fiscal pressure on the sector has not disappeared.

As Brazil balances:

  • Public security funding needs
  • Market competitiveness
  • Regulatory sustainability

the betting industry is likely to remain part of broader political negotiations in Congress.

For now, operators can breathe — but the debate over how heavily to tax Brazil’s fast-growing gambling market is far from settled.

Summary

Brazil’s Chamber of Deputies approved a major anti-organized crime bill without the proposed CIDE-Bets tax on online betting companies. The R$30 billion levy was removed amid political and operational concerns, with lawmakers agreeing to address gambling taxation separately.

While the sector avoids an immediate supertax, future fiscal reforms targeting betting operators remain firmly on the legislative agenda.