The Brazilian city seeks to become a hub in the sector by creating jobs and boosting the local economy.
Brazil.- The municipality of Porto Alegre approved a modification that reduces the tax rate from 5 to 2 percent on the Tax on Services of Any Nature (ISSQN, acronym in Portuguese) related to sports betting services, such as distribution and sale of tickets, lotteries, bingos, and betting coupons. This measure is part of a strategy to attract companies from the sector, which has been expanding in Brazil since the regulation of the activity in 2023.
“With the tax reduction, Porto Alegre aims to position itself as a hub of the segment, promising to generate jobs, boost the local economy, and increase tax revenues. This activity adds to the other 62 in which we had already reduced the tax,” highlighted the city's Secretary of Finance Rodrigo Fantinel.
The amendment proposed by councilor Cláudio Janta was incorporated into the supplementary bill that extends until December 31, 2026, the exemption of ISS for public and selective collective transport by capacity. The current legislation anticipated that the exemption would end at the end of 2024.
A survey conducted by Sindilojas Porto Alegre revealed that, on average, each bettor in the city spends R$ 249 (USD 40) per year on online sports betting platforms. The survey also shows that, among those surveyed, 41 percent are against betting, 23 percent are in favor, and 32.8 percent are indifferent. The majority of supporters are men, at 26.6 percent, compared to 19.9 percent of women.
See also: Concern in Brazil: the online gaming sector was included in the Selective Tax
The survey showed that more than 60 percent of Porto Alegre residents have never placed bets, while 8 percent bet frequently and 13 percent sporadically. Among bettors, the most active age group is Generation Z, aged 18 to 29 years, with about 35 percent making occasional or frequent bets. Class C (income from 4 to 10 minimum wages) spends the most on betting, with an average annual expenditure of R$ 255 (USD 241).
