IBJR criticizes the creation of “Cide-Bets” and warns of the risk of strengthening the illegal betting market

IBJR criticizes the creation of “Cide-Bets” and warns of the risk of strengthening the illegal betting market

THE Brazilian Institute of Responsible Gaming (IBJR) criticized, in note released This Thursday (4), the proposal to create selective taxation on regulated betting houses, the so-called “Cide-Bets”, included by senator Alessandro Vieira in the report of Bill 5,582/2025, the PL Antifaction.

The new tax, presented to the Senate’s Constitution and Justice Committee (CCJ), plans to allocate resources to fighting organized crime and financing public security.

The IBJR warned that the measure could produce “devastating effects and exactly the opposite of those intended” by the legislators. The proposal envisages taxing the total amount bet (turnover) as a way of discouraging online gambling. According to the institute, international experiences show that this model, adopted in countries such as Germany, Portugal and Colombia, increased operational costs, reduced the competitiveness of regulated companies and strengthened the clandestine market, which already represents more than half of bets in Brazil.

IBJR
Photo: Disclosure/IBJR

In the entity’s assessment, the new taxation would be counterproductive at a time when the country seeks to financially stifle organized crime. “Instead of contributing to the fight against illegal activities, the proposal tends to expand them, by penalizing those who operate within the law and opening space for informality — fertile ground for money laundering”, says the note.

The IBJR defends the maintenance of the GGR (Gross Gaming Revenue) taxation model, which considers the amount wagered minus the prizes paid, adopted in countries such as the United Kingdom and Spain.

Currently, Brazil already taxes regulated bets at 12% on the GGR, in addition to PIS, Cofins, ISS, IRPJ and CSLL, which brings the total charge to more than 35%. In 2025, the sector is expected to raise around R$9 billion in federal taxes and R$600 million in municipal taxes.

The institute also questioned estimates of revenue of R$30 billion per year with Cide-Bets and other measures. According to the IBJR, the formal market, which represents 49% of bets, generates around R$36 billion annually — which would make the revenue target unfeasible without compromising the sustainability of legal companies and expanding the space for clandestine gambling.



Fonte: Gaming365 – Brasil

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