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New 15% Cide Tax on Betting Deposits May Trigger Sponsorship Breakups with Brazilian Football Clubs

There is also the possibility that the newly proposed 15% contribution, referred to as Contribution for Intervention in the Economic Domain (Cide), on deposits made by bettors would alter the current conditions of the sponsorship contracts between betting agencies and football clubs in Brazil. This contribution was recently proposed in the Anti-Contraband Bill (PL 5.582/2025) by Senator Alessandro Vieira (MDBSE).

This tax will specifically target the flow of funds made by individuals to licensed betting operators through financial or payment institutions. According to representatives in the industry, the new tax will upset the economic balance of the existing sponsorship agreements, where clauses have been included stating the possibility of termination in the case of extreme regulatory changes.

According to a report by Poder360, betting shops and football clubs are paying attention to what is happening, and this is no surprise, considering the importance of sponsoring the clubs from these businesses in Brazilian football in recent times.

Contract Clauses Allow Early Termination

Generally, the agreement between the betting operator and the football club provides that in the event the contract is to be terminated, this is possible under two particular circumstances, namely, if the activity is prohibited, or if the tax imposed on the deal is very high.

With the approval of the revised bill in the Senate, the bill has to undergo another level of analysis and review in the Chamber of Deputies. Industry players are weighing up possible legal options, claiming that the surcharge may not be constitutional. However, there appears to be scope for deputies to revise or delete the Cide measure at this stage of re-analysis.

Revenue Potential and Allocation of Funds

According to estimates from the Central Bank, which were cited by Senator Vieira, this new contribution could generate up to R$30 billion per year. The funds will be allocated to the National Public Safety Fund, which will be used for the struggle against organized crime and an expansion of the prison system.

The Brazilian Institute of Responsible Gaming (IBJR), which represents 21 betting operators, opposed the measure when the Senate approved the original bill in December.

Industry Concerns and the Risk of Strengthening the Illegal Market

As noted by André Gelfi, director, board member, and co-founder of IBJR, the film industry is “undergoing a profound structural change, and increased taxation is part of this evolution.”

“We are now entering a more mature phase of discussion, where adjusting values becomes necessary to ensure the long-term sustainability of operators and clubs. This is a movement to adapt the ecosystem to a more demanding regulatory environment, preserving balanced, lasting partnerships compatible with the new economic reality of the sector”, he told Poder360.

However, Gelfi also announced some of the unintended effects of the new tax. Gelfi said: “This is a measure that tends to strengthen the illegal market, as it gives clandestine platforms an unprecedented competitive advantage. By taxing deposits by 15% at licensed operators, the State effectively makes R$100 worth R$85 at companies that follow the law, while in the illegal environment, the same R$100 retains its full value. Today, we estimate that about 51% of the market already operates illegally, and the creation of the Cide-bets could further increase this percentage.”

Silence from Football Clubs

Until now, no Brazilian football club has stated anything related to the possibility of contract terminations or renegotiations with their current betting sponsors. Nonetheless, given the financial dependency of Brazilian football clubs on these sponsorship contracts, it can be understood that the impact might be felt if anything occurs.

As the bill progresses through the legislative process, the outcome may define not only the economic aspects of Brazil’s regulated betting industry but also the commercial side of the Brazilian game of football.

Source: BNL Data

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Eduardo Krett
Eduardo Krett
Eduardo is an experienced iGaming journalist with a strong focus on the fast-growing Latin American market. With a passion for uncovering the latest trends in online casinos, sports betting, and gaming regulation, he provides readers with clear, insightful coverage of the region’s most important developments. Over the years, Eduardo has built a reputation for his deep understanding of the cultural and economic factors driving Latin America’s gaming landscape. Whether reporting on new market entries, local partnerships, or shifts in gambling legislation, his work blends accuracy, accessibility, and regional expertise — making him a trusted voice in iGaming media. When he’s not writing, Eduardo enjoys exploring emerging technologies shaping the industry and following the latest moves of LatAm gaming innovators and regulators alike.

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