The Brazilian betting market continues to see regulatory and legislative adjustments made, or attempted to be made, as it approaches its first birthday in just over two-and-a-half weeks.

Recent months have seen taxation take centre stage in legislative debates around the Brazilian betting market, known as the ‘Bets’ regime, a trend seen in a diverse range of other international markets.

The Chamber of Deputies has now settled on increasing taxes from 12% to 18%, but politicians remain focused on ironing out other elements of the regulation of Brazilian betting – like the influence of organised crime, and player protection.

Legislators laser focused on Brazilian betting

As reported by SBC Noticias – BR, the Federal Senate unanimously approved Bill No. 5,528/2025, widely known as the Anti-Faction Bill, last Wednesday (10 December), though it will return to the Chamber of Deputies for further analysis due to the Senator modifying the original text.

The bill has set up a new legal framework for combating organised crime, and has some knock on effects on the Brazilian betting market. Notably, a 15% tax will be applied to payments made by customers to betting operators – essentially a tax on deposits.

Putting it simply, if a customer deposits R100, the tax means R85 will land in their account.

The tax is an application of the Contribution for Intervention in the Economic Domain (CIDE), a tax applied on payments made by Brazilian firms to non-Brazilian firms for certain services, to the online betting market. The 15% tax rate has been named CIDE-Bets.

This is quite significant coming shortly after the approval of the new Brazilian betting tax regime. The market is now being taxed more at both ends – with an 18% tax on operators gross gaming revenue (GGR), and a 15% tax on customers’ own deposits.

SBC Noticias – BR cites estimates that the new levy will raise around R$30bn (£4.1bn) per year, which will be directed to the National Public Security Fund. However, as expected, the regulated industry has not taken this well, fearing that it will deter customers.

The Brazilian Institute for Responsible Gaming (IBJR), the industry trade body for betting companies, has protested that the tax will lead to customers moving to illegal sites – many of which are well entrenched in Brazil from long before the creation of the Bets market.

“The IBJR vehemently repudiates the approval of the CIDE-Bets tax by the Senate’s Constitution, Justice and Citizenship Committee, considering it a measure that will strengthen organised crime. Under the pretext of financing public security, the text commits a historical error: it gives clandestine platforms – many financed by criminal factions – the greatest competitive advantage the market has ever seen,” read an IBJR statement.

The IBJR cited research conducted by the LCA Consultoria Econômica, a São Paulo-based consultancy, which put the total size of the illegal Brazilian betting market at around R$78bn, with 51% of betting companies operating without a licence.

However, the authors of the Anti-Faction Bill do also have illegal betting in mind. The legislation includes an amendment which seeks to create measures for the Ministry of Finance and Federal Revenue Service to regulate the unregulated sector, which proponents believe could raise an additional R$7bn.

A challenge for self-exclusion?

On the topic of player protection, on the same day that the Anti-Faction Bill was approved by the Senate, the regulator of Brazilian betting announced that the country’s nationwide Centralised Self-Exclusion Platform has now gone live.

Brazilians can use the platform to voluntarily block themselves from all accounts they hold with betting sites while their Brazilian taxpayer ID (CPF) will be made available for new registrations and for targeted advertising by betting firms.

Bettors register by indicating the length of time they intend to remain self-excluded, with available options being one-to-12 months, while also referring to the reason they self-excluded – voluntary decision, financial difficulties, healthcare recommendation, loss of control over gambling or mental health. It is also possible to not disclose the reason

“It will be a platform for multiple activities, not just self-exclusion,” said Regis Dudena, Secretary of Prizes and Betting at the Ministry of Finance.

“Any citizen who wants information on the subject, who wants to take the Mental Health Self-Test, will be able to access the system and understand the specifics and risks of this sector, as well as being directed to links from the Ministry of Health.”

Ariadne Fonseca, Director of Economic and Tax Affairs at the Secretariat of Social Communication of the Presidency of the Republic (SECOM), said: “The Platform is a milestone in protecting bettors and consolidating a regulated betting market in Brazil.

“SECOM’s technology ensures that the citizen’s decision is respected with security, transparency, and full compliance with data protection regulations.”

The biggest challenge to the newly established self-exclusion system, however, may be the topic discussed above – the black market. As long as Brazil continues to host a vast illegal network of betting houses, consumers facing problem gambling will always have an outlet for it, regardless of whether they are self-excluded or not.