Brazil betting operators reject CIDE-Bets, warn of illegal market
The main entities of the regulated betting sector in Brazil expressed strong rejection of the proposal to create CIDE-Bets, a new tax introduced by Senator Alessandro Vieira to Bill 5,582/2025, known as the Anti-Faction Bill. The contribution aims to finance actions against organized crime and projects an estimated annual revenue of US$5.56 billion, but according to operators, it could produce effects opposite to those intended.
IBJR: “The measure strengthens the illegal market”
The Brazilian Institute of Responsible Gaming (IBJR) questioned the initiative by pointing out that it ignores a key market fact: more than 50 percent of bets in Brazil are currently placed on unregulated platforms without tax payments. According to the institute, an additional tax burden will only widen the gap between licensed operators and clandestine operators who already operate at much lower costs.
The IBJR recalled that regulated companies will have to contribute around R$9 billion in federal taxes, R$600 million in municipal taxes, and a 12 percent rate on GGR in 2025.
“A contribution created to combat organized crime should not increase the competitive advantage of those operating outside the law,” the entity stated, affirming that the revenue projections do not consider the real market dynamics.
ANJL: taxing deposits pushes players to the unregulated market
The National Association of Games and Lotteries (ANJL) also expressed concern about the inclusion of CIDE-Bets without prior debate with the sector. The opinion analyzed in the Senate foresees double taxation: 15 percent on each financial transaction of players and another 15 percent on each bet placed.
The association warned that there is no international experience supporting a model that taxes deposits. “When the user perceives a direct tax on the money they deposit to play, they immediately migrate to unregulated operators,” the entity pointed out.
The ANJL added that the operator is only a custodian of players’ funds, so charging a tax on deposits would be equivalent to applying a tax burden for a citizen to place money in their own bank account, a precedent it considers unprecedented and risky.
Furthermore, the association emphasized that the current taxation on GGR already provides sufficient resources to finance public security policies, so the creation of a new tax would generate unpredictability and legal uncertainty in a market that is still consolidating its regulatory framework.
The future of the project
Although the Anti-Faction Bill was approved in the Chamber of Deputies, the modifications introduced in the Senate will require the text to return to the Chamber of Deputies before it can eventually be enacted. For now, the vote remains stalled following a request for review by Senator Marcos Rogério in the Constitution and Justice Committee.
The debate will continue under tension, while the sector warns that CIDE-Bets could discourage regulated competition, increase informality, and harm the tax revenues that the project itself seeks to strengthen.
Tags: Brasil, CIDE-Bets, Brazil betting taxes