The Chamber of Deputies of Brazil approved on Tuesday night, the 24th, the **Anti-Faction Bill (PL 5582/25)**, a regulation that the president of that legislative body, Hugo Motta, described as “the most severe in history” in the fight against the country’s criminal organizations. The text will now go for presidential signature and will be named the Raúl Jungmann Law, in honor of the former Minister of Public Security.
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The approval materialized a previous agreement between the bill’s rapporteur, Deputy Guilherme Derrite (PP-SP), and the leaders of the Chamber. Motta himself anticipated the understanding hours before the vote: “We reached an agreement so that the text can be voted on without the broad disagreements of the previous vote,” he declared.
The tax that did not pass in Brazil
The most controversial point of the project was the so-called Contribution for Intervention in the Economic Domain of Sports Betting, known as CIDE-Bets. The mechanism established a 15% tax on each deposit that bettors made on digital betting platforms, with direct withholding at the source. The funds collected would be allocated entirely to the National Public Security Fund (FNSP).
The Federal Senate had previously approved this measure, and the rapporteur Derrite himself defended it in his report. “This is a mechanism to structurally expand the financing of public security, creating a stable and specific source of resources for intelligence operations, the repression of organized crime, and the strengthening of the prison system,” the legislator argued.
However, the plenary voted symbolically in favor of an amendment presented by Deputy Doutor Luizinho (PP-RJ), vice-president of the bloc that groups several parties of the government coalition. That amendment removed Article 14 of the text approved by the Senate, which contained the CIDE-Bets, and left the tax out of the final law.
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Legal certainty for the sector
Motta justified the exclusion of the tax with an argument of regulatory stability. The president of the Chamber pointed out that the debate on CIDE-Bets should take place separately and in an orderly manner, and criticized the frequent changes in tax rates. “There is no way to change the tax rate monthly in any sector, as this eliminates the planning capacity of any company,” he maintained.
The decision coincided with the receipt, on that same day, of a study prepared by the Esfera Institute that warns about the unintended effects of excessive tax burdens on licensed operators. According to that document, regulatory compliance costs create a competitive advantage for unregulated platforms, which offer better prizes and less bureaucracy to consumers. The final agreement between the Ministry of Justice, headed by Wellington César Lima e Silva, and the rapporteur Derrite paved the way for the vote.
The regularization regime also fell
The approved amendment also eliminated another mechanism included in the Senate text: the Special Regime for Exchange and Tax Regularization (RERCT) Zero Betting Litigation. This figure allowed for the voluntary declaration of assets linked to fixed-odds betting, with a 15% income tax plus a 100% penalty on the verified asset increase until December 31, 2024.
The proposal followed the logic of previous retroactive regularizations but with a broader scope over other federal taxes. Like the CIDE-Bets, it was left out of the final promulgated version.
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