Porto Alegre approves tax cut to 2% on sports betting, lotteries, iGaming

The Porto Alegre City Council has approved a measure to reduce the Tax on Services of Any Nature (ISSQN) to 2% for services related to sports betting, lotteries, and iGaming. The amendment, passed on Monday, aims to position Porto Alegre as a hub for the growing betting sector.  

“With the tax reduction, Porto Alegre seeks to position itself as a hub for the segment, which promises to generate jobs, boost the local economy, and increase tax collection,” said Rodrigo Fantinel, Secretary of Finance.  
 
The move aligns with a similar initiative in São Paulo, where the ISS rate for iGaming and fantasy gaming companies was reduced to 2% in December 2022. In November 2024, São Paulo further streamlined the industry by allowing companies to issue a single invoice monthly for sales results.  

By adopting this strategy, Porto Alegre hopes to attract businesses in the sector, much like São Paulo.  
 
The tax cut is part of Porto Alegre’s larger effort to foster economic development, with 62 other activities already benefiting from reduced tax rates. The amendment, proposed by Councilor Cláudio Janta, was included in a bill extending ISS authorization for public and selective collective transportation until December 31, 2026.  

“The activity adds to the other 62 in which we have already had a tax reduction,” Fantinel noted.  
 
The proposal now heads to the Executive Branch for final approval. If enacted, it will mark a key step in the city’s plan to create an environment favorable to innovation and economic growth within the betting sector.