Brazil sector warns of illegal gambling rise after Senate plenary approves 15% tax on deposits
Summary
The Brazil Senate plenary has approved an amendment to the Antifaction Bill introducing a 15% tax on player deposits to licensed gambling platforms and creating a new CIDE-Bets levy intended to fund the National Security Public Fund. The vote (64-0) now sends the amended bill back to the Chamber of Deputies before it can reach the president. The package also includes a proposal to levy a 15% retrospective tax on operators’ activity from 2018–2024.
Author style: Punchy — this is a big development for Brazil’s regulated market and could reshape the competitive landscape. Read the detail if you work in payments, compliance or operator strategy.
Key Points
- Senate plenary approved a 15% tax on player deposits as part of the Antifaction Bill (vote 64-0).
- The CIDE-Bets tax is intended to feed the National Security Public Fund, estimated to raise around BRL30 billion annually.
- The bill proposes a 15% retrospective tax on licensed operators’ activity between 2018 and 2024 (RERCT Litígio Zero Bets).
- Industry bodies warn the deposit tax could push players to illegal operators, as seen after Colombia introduced a similar measure.
- A separate bill proposing a gradual tax rise from 12% to 18% has been delayed after an appeal for further Senate analysis.
Content summary
The Antifaction Bill, amended in the Senate, adds a 15% levy on player deposits to licensed gambling platforms and establishes the CIDE-Bets fund for national security spending. Lawmakers project BRL30 billion a year from the new tax, though industry groups challenge that premise, noting the formal market currently generates roughly BRL36 billion.
The bill also reintroduces a retroactive 15% tax on operators’ pre-regulation activity (2018–2024). Because the measure was amended, it must return to the Chamber of Deputies for review before the president can sign it into law.
Trade bodies and the Brazilian Institute of Responsible Gaming (IBJR) warn the deposit tax risks expanding the black market. They cite Colombia’s experience, where a VAT on deposits coincided with a sharp drop in formal online gross gaming revenue and a reported migration to unregulated sites. The IBJR argues the deposit tax effectively reduces the bettor’s value in the legal market and could make regulated operations unviable.
Separately, PL 5,473/2025 — a bill proposing a phased tax increase from 12% to 18% between 2026 and 2028 — has been held up after 19 politicians requested further Senate scrutiny, making its progress before recess unlikely.
Context and relevance
This development matters to operators, payment processors, affiliates and regulators. A deposit-level tax is unusual and directly affects customer economics, marketing and retention. If players perceive better value offshore or with illegal operators (who don’t apply the levy), regulated platforms could lose volume and revenue, undermining tax forecasts and regulatory goals.
The move sits against a regional backdrop where similar measures (eg, Colombia’s deposit VAT) have been blamed for drives toward the black market. The proposed retrospective charge on operators raises further legal and financial risk for businesses that had been operating ahead of full regulation.
Why should I read this?
Because this isn’t just another tax story — it could be a game-changer for Brazil’s regulated gambling market. If you work with operators, compliance, payments or market strategy, you’ll want to know how the levy is structured, the timing for Chamber review, and the likely fallout for player behaviour. TL;DR: it might make the legal sites pricier and illegal ones more attractive. Not great.
