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Recife city is strategically aiming to entice enterprises from the online gambling and betting sector. Introducing a bill to the City Council, Mayor João Campos (PSB) recommends lowering the tax rate for businesses in this industry. Once ratified, the new bill will cut the Service Tax (ISSQN) tax rate to only 2%.
A Move to Attract More Businesses
The suggested modification seeks to persuade lottery, gambling house, and internet gaming businesses to start operations in Recife. The bill modifies Municipal Law No. 15.563, passed in 1991, which works as the Tax Code of the city. Lottery ticket sales, bingo games, betting slips, prize awards, and dividends would all be taxed at the new 2% rate on distribution and sale of capitalization bonds.
The program follows a path observed in other Brazilian cities. Given the rising regulation of sports betting and internet gambling, companies are looking for sites with more favorable tax laws to set up their businesses. Recife is trying to establish itself as a competitive business center; therefore, its movement is consistent with this change.
Expansion Beyond RECENTRO
Right now, Recife offers a comparable tax break but only in a particular zone called RECENTRO. Located in the city’s historical downtown, this zone covers Santo Antônio, Recife, and São José.
The new plan broadens this benefit to include the whole city, therefore giving companies more choices for their operational headquarters in Recife. This could substantially grow the economy of the city by luring more investments, creating employment, and raising income via indirect taxes and economic activity.
Betting Companies and Football in Recife
The gambling business has already made a significant mark on Recife’s soccer scene. All three main soccer teams of the city have sponsorship agreements with betting firms:
- Presently in the Brazilian Serie A, Sport Recife highlights Betnacional since it is their major sponsor and is presented on the team’s jersey.
- Playing in Serie C, Clube Náutico Capibaribe has Esporte da Sorte as its main sponsor.
- Bet dá Sorte supports Santa Cruz Futebol Clube.
In addition to club sponsorships, the Pernambuco Football Federation (FPF) has a connection with Betnacional, a sponsor of the 2025 Campeonato Pernambucano. Sport Recife faces Offshore at the Ilha do Retiro stadium on April 2nd, with kickoff set for 9.30 p.m., the last of the competition.
Potential Economic Impact
If the bill passes, Recife could see major financial gains from the measure. Reducing the ISSQN tax rate for the gaming industry would make the city more appealing for businesses wishing to locate their headquarters in Brazil. A more aggressive tax system might raise local job possibilities and general economic activity in allied industriesmarketing, technology, and financial servicesfor Recife.
Furthermore, the enlargement of the incentive beyond RECENTRO guarantees that other parts of the city can gain from the existence of these enterprises, hence encouraging growth and renovation in many regions.
Recife’s idea to lower the ISSQN tax for the gambling and internet gaming sector is a major move toward transforming the city into a center for this booming field. The city aims to attract big industry players in the gambling sector, grow local economic activity, and improve employment by offering an appealing financial environment. Recife seeks to be a top betting destination for businesses in Brazil and therefore sets itself at the vanguard of this competitive front, racing with other Brazilian cities to investigate equivalent policies.
Source: iGaming Brasil
