Brazil’s Senate has agreed to delay a key vote on proposed gambling tax legislation, pushing the decision into 2026 as debate continues across the political and betting sectors.
The move affects PL 5,582/2025, commonly referred to as the Antifaction Bill, which includes a controversial 15% tax on player deposits made to licensed online betting platforms.
Lawmakers made the decision during a meeting on Monday, despite the proposal having support from both government and opposition figures.
The delay comes after the Senate plenary approved the bill last week, sending a signal that while there is appetite for reform, concerns remain about its economic impact.
What the Antifaction Bill Proposes
At the centre of the bill is the creation of the so-called CIDE-Bets tax, which would apply a 15% levy to every player deposit made with licensed operators.
Revenue raised through the measure would be directed to Brazil’s National Public Security Fund, with the government estimating annual proceeds of around BRL30 billion.
Officials have argued that the tax could help address gaps in the federal budget at a time of mounting fiscal pressure.
The legislation also seeks to revive the RERCT Litígio Zero Bets provision, which would require operators to pay a retrospective 15% tax on activities carried out between 2018 and 2024, before the market was formally regulated.
That element has proven particularly contentious among licensed operators already operating under Brazil’s new regulatory framework.
Political Reaction to the Delay
Explaining the decision to push the vote back, Workers’ Party leader Lindbergh Farias acknowledged the sensitivity of the issue.
“It’s a controversial topic that requires more debate,” Farias said.
By postponing the vote, lawmakers appear to be seeking additional time to assess the potential consequences for both consumers and the regulated betting market.
The delay also offers temporary relief to operators facing uncertainty over future tax obligations.
Industry Warnings Over Deposit Tax
The proposed CIDE-Bets tax has drawn strong criticism from the Brazilian Institute of Responsible Gaming (IBJR), which argues the measure could undermine the legal market.
According to the IBJR, taxing deposits rather than profits risks pushing players toward unlicensed operators that do not apply similar charges.
“By taxing the bettor’s deposit at 15%, the state decrees that BRL100 is only worth BRL85 in companies that follow the law,” the IBJR stated.
“In the black market, however, the same BRL100 is worth the full amount. This is a direct incentive to migrate to the illegal market.”
The organisation also questioned the government’s revenue projections.
“Furthermore, the measure is based on a non-existent financial premise,” the IBJR said. “It claims to collect BRL30 billion annually from a formal market that currently generates around BRL36 billion.”
“Therefore, it projects collecting in taxes almost equivalent to the entire revenue of the regulated sector, which is mathematically impossible and renders formal economic activity unviable.”
Colombia Highlighted as a Warning Sign
Industry groups have pointed to Colombia as an example of how deposit taxes can backfire.
Earlier this year, Colombia introduced a 19% value-added tax on player deposits.
In the months following its introduction, the Colombian Federation of Gaming Entrepreneurs warned that online gross gaming revenue had fallen by around 30%.
Brazilian stakeholders fear a similar outcome if deposit-based taxation is implemented domestically.
Additional Tax Pressures Loom
The postponement follows another proposal that has raised alarms within the betting sector.
PL 5,473/2025 would gradually increase operator taxes from 12% to 15% in 2026 and 2027, before rising again to 18% in 2028.
Although approved by the Senate’s Economic Affairs Committee earlier this month, the bill has been held up after an appeal triggered further Senate review.
With the government recess approaching, both measures are now unlikely to progress before the end of the year.
