Bill 02/2025, proposed by Mayor João Campos, from the PSB party, and approved as an urgent measure by the City Council, amends the Recife Tax Code (Law No. 15,563/1991) to reduce the ISSQN (Tax on Services of Any Nature) rate from 5% to 2% on services related to the distribution and sale of lottery tickets and products — such as bingo, cards, tickets, betting coupons, raffles and prizes.
The change directly benefits the ‘Bets’, equating their tax treatment to the Information Technology sector of Porto Digital.
This reduction is part of the city government's strategy to attract and maintain investments in the sports betting sector, which has been growing in Brazil in recent years.
The justification presented for the reduction in the rate includes the contributory potential of the economic activity and its importance to the city.
The decision by the City Council was not unanimous and faced resistance from some council members, who expressed concerns about the negative impacts of gambling addiction.
Only the following council members voted against the measure: Ana Lúcia (Republicans, Felipe Alecrim, Gilson Machado Filh, Jô Cavalcante, Kari Santos, Liana Cirne, Thiago Medina, Alef Collins and Fred Ferreira.
The other economic activities in the municipality remain subject to the standard 5% ISSQN rate.
Parliamentarians from different parties argued that the tax benefit could encourage the expansion of the betting market.
The project came into effect on April 2, shortly after its publication in the Official Gazette of Recife. However, the City Hall did not widely publicize the approval of the new rule.
The measure follows a movement already adopted by other Brazilian municipalities. With the advancement of the regulation of sports betting and gambling, companies in the sector seek locations with more advantageous tax conditions to establish themselves.
Tax incentives for ‘Bets’ are on the agenda of discussion among deputies in Alepe
The decision The Recife City Hall's proposal to reduce the rate of the Tax on Services of Any Nature (ISSQN) for online betting platforms, known as ‘Bets’, was criticized and generated debate in the plenary session held on Monday (19) at the Pernambuco Legislative Assembly (Alepe).
The issue was raised by the government leader at Alepe, Socorro Pimentel (União Brasil), and was accompanied by Renato Antunes, with criticism of the mayor of Recife, João Campos. The mayor's co-religionist, congressman Rodrigo Farias (PSB), came out in defense of the measure.
Source: GMB
