Brazil’s Minister of Justice, Wellington César Lima e Silva, has called on Congress to draft special legislation or use the Public Security Constitutional Amendment (PEC da Segurança Pública) to ensure the taxation of gambling operators, after the sector was excluded from the recently approved anti-fraud bill.
The announcement follows the approval by the Chamber of Deputies of the Anti-Fraud Bill (PL Antifacção), without the previously included provision that would have allowed for the taxation of betting operators. The federal government had considered this measure a key revenue stream to strengthen efforts to combat organized crime and increase funding for public safety.
Initially, the tax provision was part of the official report of the bill, presented by Congressman Guilherme Derite (PP–SP). However, during plenary discussions, MPs approved a separate vote request (DVS) to remove the clause. The decision drew criticism from members of the Workers’ Party (PT), who argued that excluding betting taxation weakened the government’s broader security strategy.
During a press conference, Wellington César firmly rejected claims of any political arrangement with Hugo Motta, President of the Chamber of Deputies, to facilitate the removal of the measure. He stressed that no agreement had been made and reiterated that the taxation proposal had been part of the main report submitted for debate.
The minister described the government’s development of the bill as strategic, particularly after the House rejected elements of the Senate’s previous proposal. The minister described the government’s development of the bill as strategic, particularly after the House rejected elements of the Senate’s previous proposal.
With limited time between the final report’s presentation and the plenary vote, the government signalled that a detailed legal assessment is still underway.
As discussions continue, the taxation of Brazil’s betting sector remains central to the debate over sustainable public security financing and the regulatory architecture governing the country’s rapidly expanding gambling market.
