The Anti-Faction bill establishes a legal framework to combat organized crime, toughens penalties for criminal factions and militias, and creates a new contribution on betting operators to finance public security actions and the prison system. CIDE-Bets proposes to tax each bettor’s deposit at a rate of 15% on sports betting and online gaming platforms.
The bill is reported by Congressman Guilherme Derrite (PP–SP), former Secretary of Public Security of the state of São Paulo. Derrite was responsible for the version of the report that had already been approved by the Chamber in November. The Senate later made changes that were welcomed by the government—such as the inclusion of taxation on betting—but these points may still be altered in a new vote by the Chamber.
The rapporteur included the creation of a tax on online betting with a 15% rate on transfers from individuals to the platforms. This contribution would remain in effect until the full implementation of the Selective Tax created by the tax reform, and the funds would be allocated to the National Public Security Fund. Estimated annual revenue is BRL 30 billion (US$5.5bn).
With the measure, the sports betting and online gaming sector argues that the illegal market is being given a government “bonus,” since clandestine websites will not collect the 15% at the time of deposit, while licensed operators will be required to tax bettors immediately upon entry. As a result, the industry warns that competition with illegal operators could drive bettors to migrate to the black market.
Source: GMB / O Globo
