Brazil’s Chamber of Deputies Strikes Down 15% Deposit Tax to Shield Regulated Betting Market

Brazil’s Chamber of Deputies has removed the 15% deposit tax from the Antifaction Bill, a major win for the licensed betting sector and market channelization.

By: AXL Media

Published: Feb 26, 2026, 3:50 AM EST

Source: The information in this article was sourced from iGaming Business

The Transaction or Development

The Brazilian betting landscape saw a dramatic regulatory shift this Tuesday as the Chamber of Deputies approved the Antifaction Bill, but only after stripping away Article 14. This specific clause, known as CIDE-Bets, would have mandated a 15% tax on every deposit made to licensed betting platforms. The removal follows a successful amendment by Dr. Luizinho, which effectively halted a fiscal measure that industry experts had previously labeled as "disastrous" for the sustainability of the newly regulated market.

Regulatory and Competitive Landscape

The legislative pivot also saw the demise of the "RERCT Litígio Zero Bets," a retrospective tax regime that would have forced operators to pay 15% on all gambling activities conducted between 2018 and 2024. House Speaker Hugo Motta noted that removing these tax burdens was essential to secure the bill's passage without the "wider disagreements" that had characterized previous sessions. However, the decision faced sharp criticism from Federal Deputy Reimont and others, who argued that the lack of a deposit tax benefits organized crime and large corporate lobbies at the expense of national security funding.

Strategic Rationale and Market Impact

From a strategic standpoint, the rejection of CIDE-Bets is a victory for market channelization. Udo Seckelmann, a leading industry legal expert, had cautioned that such heavy taxation could drive as much as 80% of players back to the unlicensed offshore market. By avoiding the deposit tax, the Brazilian government is prioritizing the growth of a legal, taxable framework over immediate, high-volume revenue collection. This approach is intended to ensure that the regulated sector remains competitive against illegal alternatives that do not carry similar fiscal burdens.