Belo Horizonte reduces taxes to attract betting operators
The Belo Horizonte City Council is advancing a strategy to position itself as one of the most attractive destinations for sports betting companies in Brazil. The capital of Minas Gerais is promoting Bill 503/2025, which proposes to reduce the ISSQN tax from 5% to 2% for activities related to lotteries, bingo, and fixed-odds betting.
The measure, driven by the municipal Executive Branch, received a favorable opinion from the Budget and Finance Commission and is ready to be voted on in the plenary. For its approval, the initiative needs 28 votes, equivalent to two-thirds of the Chamber.
A bet on regional competitiveness
The municipal government maintains that the tax reduction is key to competing with other Brazilian cities seeking to attract companies in the sector, which is growing rapidly following federal regulation. Although the adjustment implies an estimated loss of only R$ 11,000 in 2025, the authorities consider it a minimal sacrifice compared to the potential to attract investments, generate employment, and boost the local economy.
“Reducing the rate to 2% is a strategic measure to attract betting operators and align ourselves with competitive practices adopted in other municipalities,” the Executive stated in its statement of reasons.
Tax relief for sports clubs
The project also includes an additional benefit: extending the period for sports and recreational clubs to access discounts on municipal debts. Currently, the discount applies only to IPTU commitments contracted until 2014; the proposal extends the deadline until December 31, 2020.
With this modification, 95 entities would be enabled to regularize debts totaling R$ 15.1 million, strengthening the “Sports for All” program, which seeks to expand the offer of sports and social activities in the city.
Legal and financial support
The project rapporteur, Leonardo Ângelo, argued that the proposal fully respects municipal competencies regarding ISSQN and complies with current fiscal regulations. He stated that the initiative is compatible with the Master Plan, the PPA, the LDO, and the LOA, and that it has a “solid legal basis and an adequate financial estimate.”
Unquestioned political support
During the November 28 session, councilors Arruda (Republicans), Diego Sanches (Solidarity), and Marilda Portela (PL) backed the favorable opinion. So far, no parliamentarian has presented amendments to the text.
The proposal now awaits its first vote in the plenary. If it obtains the necessary votes, it can proceed directly to final approval.
A strategic move in an expanding market
The initiative is set within the context of a rapidly growing Brazilian sports betting market attracting investments from national and international operators. With several municipalities competing to host companies in the sector, Belo Horizonte seeks to anticipate and offer a competitive fiscal framework that allows it to consolidate its appeal compared to other state capitals in the country.
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