Brazil Approves Betting Houses' New 15% Tax & Anti-Faction Bill
The Senate Committee on Constitution and Justice approved on Wednesday the Bill 5,582/2025, known as the Anti-Faction Bill, which establishes a legal framework to combat organized crime and introduces a new tax aimed at online betting in Brazil. The text, modified by the rapporteur Alessandro Vieira, will still go to the Plenary today under an urgent regime and, if approved, must return to the Chamber of Deputies for final review.
A new tax for online betting
The Bill creates an Economic Domain Intervention Contribution, called Cide-Bets, which will apply a 15 percent rate on all money transfers made by individuals to betting platforms. The contribution will be temporary and will operate until the country begins collecting the Selective Tax provided for in the tax reform.
The funds raised will be entirely allocated to the National Public Security Fund to finance infrastructure, integrated operations, and actions against organized crime and the penitentiary system. According to the rapporteur, the contribution could generate up to 30 billion reais per year. Vieira stated that Brazil needs “an effective and modern response to recover areas dominated by criminal factions” and that without funding “the fight against crime does not exist.”
Sector and Congress warnings
The creation of Cide-Bets generated strong criticism. The Parliamentary Front for the Free Market published a manifesto warning that the new tax could strengthen the illegal betting market, since unregulated operators would not pay the tax and would offer more competitive prices. The group argues that the measure could reduce the overall sector revenue and affect planned investments for sports, health, tourism, social security, and public security.
Penal tightening and framework against criminal factions
Beyond the tax issue, the Anti-Faction Bill toughens penalties for crimes committed by criminal organizations. Homicides committed by members of factions or militias may receive sentences ranging from 20 to 40 years in prison. Being part of, financing, or supporting these organizations may imply sentences of 15 to 30 years of imprisonment, in addition to fines.
The project defines a criminal faction as any organization that exercises territorial control or acts interstate through violence, coercion, or threats. Furthermore, it provides that penalties will be doubled if the convicted person holds a command position, even if they do not directly participate in the execution of the crimes.
The text will now be voted on by the Senate Plenary in an urgent session. The discussion takes place in a context of expansion of the regulated betting market and increasing state pressure to finance public security policies.
Tags: Brazil, online gaming taxes, Cide-Bets Brasil, Cide-Bets tax, Brazil betting taxes