Brazil scrapes 15% deposit tax from Antifaction Bill
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- Brazil’s Chamber of Deputies approved the Antifaction Bill on February 24, 2026 after removing Article 14, which would have imposed a 15% CIDE-Bets tax on player deposits to licensed betting platforms.
- A retrospective tax on pre-regulation gambling earnings between 2018 and 2024 was also scrapped in the same vote.
- The bill now goes to President Lula for final sign-off, but lawmakers have signalled a standalone CIDE-Bets proposal is likely to follow.
Brazil’s licensed betting sector has avoided a potentially damaging deposit tax after the country’s Chamber of Deputies approved the Antifaction Bill (PL 5582/25) on February 24, 2026 with Article 14 removed.
The clause would have introduced the CIDE-Bets tax — a 15% levy on all player deposits made to licensed online betting platforms.
The Brazil Senate had approved the original Antifaction Bill in December, including the deposit tax and an additional retrospective levy. An amendment filed by Deputy Dr Luizinho successfully stripped Article 14 from the legislation before Tuesday’s vote.
What was removed
Alongside the CIDE-Bets deposit tax, the Chamber also scrapped the Special Regime for the Regularisation of Exchange and Tax Assets (RERCT Litígio Zero Bets).
This rule would have required operators to pay a 15% retrospective tax on pre-regulation gambling revenues earned between 2018 and 2024 — a period before Brazil established its current licensing framework.
The bill’s primary objective remains combating criminal organisations, which formed the basis of its original parliamentary support.
House of Representatives Speaker Hugo Motta indicated the decision to remove Article 14 was necessary for the vote to proceed. Per Valor Econômico reporting, Motta said the article’s removal was needed so the text could be voted on without the divisions that had blocked earlier attempts. He also argued the taxation of betting should be debated separately, stating:
“We defend legal certainty. There’s no way to change the tax rate monthly on any sector, as this removes the planning capabilities of any company.”
The approved bill now heads to President Luiz Inácio Lula da Silva for final sign-off.
Political backlash and the prospect of CIDE-Bets returning
The removal of Article 14 drew sharp criticism from several deputies. Federal Deputy Reimont accused those on the right of being “in the hands of betting companies.” Deputy Otoni de Paula pointed to the scale of the sector’s economic footprint, claiming — based on 2025 data — that betting moved an estimated BRL30 billion monthly, or BRL360 billion annually, a figure he compared to the estimated GDP of São Paulo at BRL388 billion.
Deputy Jandira Feghali added:
“We need to tax betting. Anyone who doesn’t want to tax it is in favour of organised crime.”
Congressman Lindbergh Farias has suggested the CIDE-Bets tax could return via a standalone bill. He estimated the levy would generate approximately BRL30 billion ($5.5 billion) for Brazil’s National Security Public Fund, making it a fiscally attractive proposal for future legislative sessions.
An already-heavy tax burden
Brazil’s licensed operators are already navigating an escalating tax burden in 2026. President Lula approved a gradual gross gaming revenue (GGR) tax increase that took effect this year, rising from 12% to 13%.
The rate will increase by one percentage point annually until reaching 15% in 2028. This sits on top of existing PIS/Cofins contributions and municipal levies.
Tuesday’s outcome removes one layer of tax pressure, but it does not close the debate. The political appetite for taxing betting revenue remains strong across several parliamentary factions. For operators navigating Brazil’s first full year of regulated online gambling, the legislative environment continues to carry uncertainty.
A standalone CIDE-Bets bill remains a possibility. If it advances, operators and regulators will face the same channelisation questions that shaped the argument against the deposit tax this time around.
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