Key Moments:
- Brazil’s Chamber of Deputies approved the main body of the Anti-Faction Bill targeting organized crime.
- Lawmakers removed a proposed R$30 billion annual tax on online betting companies, known as CIDE-Bets.
- Legislators will address fiscal measures for the betting sector in separate future legislation.
Anti-Faction Bill Proceeds Without Betting Tax Provision
During a late-night session, Brazil’s lower house, the Câmara dos Deputados, approved the central components of the Anti-Faction Bill (PL Antifacção). The bill aims to intensify the country’s fight against organized crime. However, lawmakers excluded a highly scrutinized section that proposed a new tax on online betting operators before the vote.
The removed provision, known as CIDE-Bets, was expected to generate approximately R$30 billion each year. The government intended to direct these funds toward public security initiatives. Nevertheless, both the Ministry of Finance and legislative leaders cited current priorities and major operational challenges as reasons for removing the tax.
Deferred Taxation of the Betting Industry
Deputy Guilherme Derrite stated that lawmakers had reached an agreement to postpone discussions on taxation for the betting sector. As a result, Congress will debate fiscal policies related to online gambling separately from the Anti-Faction Bill. These measures will appear in distinct legislation at a later stage.
Legislators Voice Support and Opposition
The decision to drop the CIDE-Bets clause sparked significant debate. On one hand, critics argued that abandoning the tax deprives public security forces of a vital revenue stream during ongoing efforts to combat criminal groups. On the other hand, supporters emphasized the need to address implementation challenges first.
Deputy Lindbergh Farias strongly criticized the agreement, stating: “Gentlemen, I will not personally, as a congressman, enter into any agreement to spare the ‘skin’ of betting companies in this country.” He also noted that the Senate had previously approved the measure unanimously. Therefore, he warned that the Chamber of Deputies’ decision could undermine that consensus.
Main Objectives of Anti-Faction Bill Remain Intact
Despite disagreements over betting sector taxation, the Anti-Faction Bill’s core aims remain intact. Specifically, the legislation seeks to sever financial lifelines for criminal organizations, impose stricter prison sentences, and expand asset seizure protocols. In addition, the bill establishes guidelines for distributing assets seized by police at both state and federal levels.
Short-Term Relief and Future Debates for the Betting Sector
The exclusion of the betting tax provides temporary relief for companies in the sector, especially after recent regulatory changes under Law No. 14.790/23. However, lawmakers have committed to revisiting gambling taxation in separate proceedings. Consequently, the issue will likely return to Brazil’s legislative agenda.
As the online betting framework continues to evolve, the relationship between market regulation, public security funding, and sector sustainability will remain a central topic of debate in Congress.
| Bill Component | Status | Key Impact |
|---|---|---|
| Core Anti-Crime Measures | Approved | Targets criminal financing, tougher prison terms, and asset seizure |
| CIDE-Bets Betting Tax | Excluded | Deferred; projected to generate R$30 billion annually |
- Author
Daniel Williams
