Brazil: Sao Paulo Presents Bill To Attract Betting Shops With Tax Benefits

Brazil: Sao Paulo Presents Bill To Attract Betting Shops With Tax Benefits

The mayor of the city of São Paulo, Ricardo Nunes, advanced his idea of turning the city into an investment center for the installation of gambling companies.

On October 31, Nunes presented PL 613/2022, which contemplates the application of a minimum tax rate of 2% to companies in the lottery, bingo, and betting sector. The proposal was announced to the market in the recent edition of SBC Summit Latin America, in the state of Florida, as well as in a meeting with Entain authorities in September.

Nunes analyzed the growth of the local sports betting market and considered it a fantastic opportunity to attract investment and generate employment. With this project, São Paulo intends to be the first city in the country to offer advantages to local companies and, above all, to large international groups in the sector that plan to expand in Brazil, especially when the market is regulated.

In his explanation, Nunes explained that ‘in this scenario, although the proposed amendments represent an option for the collection of the tax at a lower rate, they actually seek to establish a tax burden capable of providing the retention or attraction of highly mobile taxpayers to the municipality, the generation of jobs and the development of the local economy, either by the promotion of the economic activities involved or by the maintenance and attraction of companies in adequate operating conditions in the Municipality of São Paulo’.

The Constitution, Justice and Participative Legislation Commission immediately appointed councilwoman Edir Sales (PSD) as rapporteur of PL 613/2022, and the files were forwarded for analysis to the Public Administration, Traffic, Transportation and Economic Activity, and Finance and Budget Commissions.

With full confidence that the project will be approved, the municipality of São Paulo decided to take part in the last edition of the SBC Summit Latin America to approach the entrepreneurs of the gaming sector of the region, interested in Brazil, and to present them with the details of the proposal.

For this purpose, the session ‘The attractiveness of the city of São Paulo for the gambling industry’ featured Guilherme Bueno de Camargo, Secretary of Finance of the city of São Paulo, as the only speaker, who talked about the city’s incentives and services available for companies to do business in São Paulo.

Bueno de Camargo’s presentation featured accurate information, facts, and attractive figures to convince companies to think about São Paulo when planning their investments and expansion for 2023.

It should be noted that on September 27, Nunes received representatives from Entain, and they discussed this proposal. Even Marcus Silva, director of the investment group, revealed that they will set up offices in Brazil and that São Paulo would be the city of choice.