The Mayor of Recife, João Campos (PSB) granted tax incentives to sportsbooks in the capital of Pernambuco. Bill 02/2025 is a proposal by the mayor and was approved as an urgent matter by the City Council.
The project amends the Recife Tax Code (Law No. 15,563/1991) and reduces 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.
According to information from the local press, the change promoted by João Campos directly benefits sportsbooks, thus equating their tax treatment to the Information Technology sector of Porto Digital.
The reduction is part of the municipal government’s strategy to attract and maintain investment 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 for the municipality.
However, the City Council’s decision was not unanimous and faced resistance from some council members. Some expressed concerns about the negative impacts of online gaming addiction. Other economic activities in the municipality remain subject to the standard 5% ISSQN rate.
Lawmakers from different parties argued that the tax benefit should encourage the expansion of the betting market in Recife. The project has been in effect since April 2, shortly after its publication in the Official Gazette of Recife.
Sportsbooks sponsor the three major football clubs in Recife
The three teams from the capital have partnerships with sportsbooks. Sport, which competes in the Série A of the Brazilian Championship, has the Betnacional brand printed on its main space on its uniform.
The Nautico Capibaribe Club, which competes in the Brazilian Championship Series C, has Esportes da Sorte as its master sponsor. The Santa Cruz Football Club, in turn, in Series D, is sponsored by Bet da Sorte.
In addition to the three clubs in the capital, the Pernambuco Football Federation (FPF) has a partnership with Betnacional, which sponsored the 2025 Pernambuco Championship.
