Brazil lawmakers hit pause on one of the most divisive betting proposals in years. The Antifaction Bill, which includes a 15 percent tax on gambling deposits, will not face a final vote until 2026.
The delay keeps operators, bettors, and regulators in limbo, even after broad political backing pushed the bill through earlier stages of the process.
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The decision to delay the vote on PL 5,582/2025 came during a meeting on Monday. Despite support from both the government and opposition, lawmakers agreed the proposal needed more time.
Workers Party leader Lindbergh Farias explained the reasoning behind the move.
“It’s a controversial topic that requires more debate.”
The postponement follows a Senate plenary vote last week that approved the bill in its current form.
At the center of the proposal sits a new levy on players rather than operators. The measure would impose a 15 percent tax on deposits made to licensed betting platforms.
Revenue from the tax, known as CIDE Bets, would flow into the National Public Security Fund. Lawmakers estimated the measure could generate around BRL30 billion, or about $5.5 billion, per year to support budget needs.
The bill also attempts to revive the RERCT Litígio Zero Bets mechanism. That provision would require operators to pay a 15 percent retrospective tax tied to activities conducted between 2018 and 2024, before the current regulatory framework.
Industry opposition has focused heavily on the deposit based structure.
The Brazilian Institute of Responsible Gaming warned the proposal could tilt the market in favor of unlicensed platforms, undermining regulation rather than strengthening it.
“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.
“Furthermore, the measure is based on a non-existent financial premise. 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.”
The group also raised concerns about the impact of retrospective taxation on licensed operators trying to comply under the new system.
Supporters of the bill point to public security funding as a core motivation. Earmarking CIDE Bets revenue for the National Public Security Fund positions gambling as a tool to address broader social needs.
Critics argue the structure risks shrinking the legal market instead, especially if bettors shift toward offshore or illegal platforms offering full deposit value.
The tension between revenue goals and market sustainability now sits at the center of the debate heading into 2026.
It is proposed legislation that includes a 15 percent tax on gambling deposits and other betting related measures.
The final vote has been postponed until 2026.
It is the proposed tax on player deposits, with funds directed to the National Public Security Fund.
Estimates suggest around BRL30 billion per year.
They argue it advantages illegal operators and threatens the sustainability of the regulated market.