Brazil's Congress removes 15% betting tax from organized crime bill
In a decision that has sparked intense debate in legislative circles, the Brazilian Congress approved a new law against organized crime but removed from its text the creation of a 15% tax on fixed-odds sports betting. This levy, called Cide-Apuestas, aimed to finance public security and the modernization of prisons across the country.
The withdrawal of the tax was driven by an amendment from the PP party, arguing that the tax burden on the sector should be processed in an independent bill, separating fiscal policy from crime-fighting measures.
The project's rapporteur, Guilherme Derrite, had proposed this tax as a temporary measure until the 2027 tax reform came into effect. However, the amendment not only eliminated the 15% charge but also discarded the rules for regularizing tax debts accumulated by sportsbooks over the past five years. Additionally, supplementary measures that required the financial sector to exercise stricter oversight over these companies were suppressed, which some sectors have interpreted as a concession to pressure from gambling operators.
The exclusion of the tax immediately drew criticism from various government deputies. Legislators like Lindbergh Farias and Bohn Gass pointed out that this decision deprives public security of an estimated R$30 billion in revenue, essential for financially crippling high-level criminal structures.
On the other hand, Deputy Otoni de Paula questioned the lack of social contribution from a sector that has a high impact on family economies, calling the vote a missed opportunity for the industry to give back to the state by funding the fight against crime.
Tags: Brazil, CideBets, Brazil betting taxes, organized crime Brazil