Belo Horizonte Mayor Álvaro Damião (União Brasil) submitted a bill to the City Council that would reduce the Service Tax (ISSQN) rate from 5% to 2%. The tax applies to betting, bingo, lotteries, gambling, and similar activities. The proposal is included in this Thursday’s (24) edition of the Municipal Official Gazette (DOM).
With this change, the mayor aims to attract more betting shops to the city. The justification is that most of these businesses already opt for the Simples Nacional tax regime. This results in lower tax rates and marginal revenue for the municipality.
The tax waiver aims to put the capital in the running for sports betting operators. In a message sent to city council members, Damião says the bill replicates changes already adopted by cities like São Paulo (SP), Porto Alegre (RS), and Barueri (SP).
Belo Horizonte Mayor’s Proposal Aims to Generate New Revenue from Sportsbooks
The adhesion of companies in the sector to Simples Nacional and the tax waiver could generate, according to the Municipal Finance Department, a loss of just R$11.6 thousand in 2025.
According to the text submitted to the Legislature, the mayor of Belo Horizonte cites new revenue from sportsbooks. “The Municipal Finance Department (SMFA) found that, in the 2024 fiscal year, these services generated revenue of R$46,090,624.83 in declarations issued by taxpayers.
However, only R$371,989.93 was declared by companies not opting for the Simples Nacional tax regime. This highlights the marginality of this revenue within the current regime. ”, says the text.
For next year, the estimated waiver is R$12,200. However, the amount rises to R$12,800 in 2027 and R$13,500 in 2028. The figures are updated considering inflation of 4.71% in 2025 and 5% in subsequent years.
The city government expects the tax rate reduction to encourage the establishment of new gambling companies in the city, thereby expanding the tax base and future revenue. Therefore, the Executive estimates that, in 2025, additional revenue from new taxpayers could reach R$2.8 million, even considering the tax waiver.
Furthermore, companies in the sector have already expressed interest in operating in the capital of Minas Gerais, with six requests for authorization filed with the Union.
“The objective is to position BH as an attractive hub in a national scenario of gambling regulation,” says the Executive, which projects a potential base of up to R$140 million in taxable services for the coming years.
