Brazilian Capitals Cut Local Gambling Taxes

Tax tug-of-war over sports betting regulation

Brazil.- August 5, 2025 – www.zonadeazar.com While Brazil’s federal government moves to raise the tax on GGR (from 12% to 18%), several capital cities are lowering municipal ISS taxes to just 2% in a bid to attract licensed operators.

Belo Horizonte moves to reduce ISS from 5% to 2%

Mayor Álvaro Damião introduced a bill in July to lower ISS for gambling operators. The goal: increase local revenues and attract federal license holders.

IBJR warns of illegal betting market risks

The Brazilian Institute for Responsible Gaming (IBJR) — representing 75% of the betting market — supports the municipal cuts but warns that higher federal taxes may boost illegal gambling, which costs Brazil an estimated R$10 billion annually in lost tax revenue.

Other cities already applying 2% ISS

São Paulo, Barueri, Porto Alegre, and Recife have already implemented the 2% tax. In Rio de Janeiro, a similar bill was withdrawn before voting in 2023.

Councilman opposes proposal in Belo Horizonte

Councilman Wagner Ferreira (Green Party) opposed the tax cut, citing social risks and lack of support for gambling addiction:

“We don’t want BH to become the capital of Tigrinho,” he stated.

🔗 Editó: @_fonta www.zonadeazar.com