CNI proposes 15% CIDE-Bets tax on online bets
The National Confederation of Industry (CNI) published on Tuesday the 28th the Manifesto for Taxation on Bets, a document proposing the creation of CIDE-Bets, a new 15% tax applied to the value of each bet placed on online gaming and betting platforms.
The goal of the initiative is to discourage excessive access to virtual games while simultaneously increasing federal revenue by approximately 8.5 billion reais per year, with an estimated 22.5% reduction in the total volume of bets.
According to the CNI, the online betting market is growing “at an overwhelming pace.” Based on data from the Ministry of Finance and the consultancy LCA, the entity estimates that the annual volume of bets in Brazil already exceeds 70 billion reais.
The manifesto justifies the creation of the tax due to the effects of indebtedness, mental health problems, and the decline in consumption in productive sectors. Additionally, a survey presented by the CNI indicates that 81% of Brazilians consider it unfair that betting houses pay less tax than other sectors.
The organization also compared tax burdens: while the manufacturing industry bears an average of 46.2% in taxes, betting houses pay only IRPJ, CSLL, PIS/Cofins, ISS, and a 12% rate on gross revenue. Bettors, for their part, are taxed only 15% on their winnings, a percentage lower than that applied to financial investments.
If approved, CIDE-Bets would come into effect in 2026, allocating its revenue to public health and education programs, in what would be a new fiscal model for the digital betting sector in Brazil.
Tags: Brazil, regulation, online betting taxes, CNI, CIDE-Bets