Argentine Gambling Association Opposes Online Gambling Tax Hike
The Argentine National Lottery Association (ALEA) has strongly opposed the government’s proposal to boost the online gambling tax from 2% to 5%.
Finance Minister Martín Guzmán recently announced the adjustment as part of the 2021 national financial plan, aiming to address the nation’s economic challenges following the COVID-19 outbreak.
ALEA vigorously opposes the tax hike, citing numerous reasons why it will be harmful to the industry.
The association highlights that any federal levy on gambling will worsen the expansion of illegal or clandestine gambling, as it will increase the tax load on authorized operators.
It contends that the federal tax also infringes upon the constitutional powers of the provincial authorities and the Autonomous City of Buenos Aires, as it transfers control over gambling from local administrations to the national government.
ALEA further asserts that the tax increase will have negative repercussions for local economies, as it will reduce gambling income for the provinces, thereby diminishing the funds allocated to each province for public well-being.
Although the group does not object to federal actions to restrict illicit wagering, it cautions that increasing taxes on legal online gambling would have minimal effect on curbing unlawful operations.
The group highlights that most provinces are contemplating or progressing towards regulating the channel following the onset of the COVID-19 pandemic.
The group observes that Argentina’s official gambling sector produces roughly 240,000 jobs, encompassing gambling venues, authorized retailers, regulators, and service providers. ALEA asserts that as part of the formal economy, these entities have paid taxes in accordance with their respective national, provincial, and municipal laws.
In contrast, the group states that clandestine gambling does not pay any taxes, employs black market personnel, and exploits existing legal loopholes to operate gambling enterprises.
The City of Buenos Aires was the initial region in Argentina to formally incorporate online gambling licensing requirements into law, approving online gambling regulations in February of this year.
In October 2020, Codere became the first operator to take significant steps towards obtaining a license, with its proposal approved by the City of Buenos Aires Lottery operator and de facto online gambling regulator, Lotería de la Ciudad de Buenos Aires (LOTBA).
Following the approval, the permit will commence putting into action the tactics laid out in its proposition. These tactics encompass technical exploration and advancement, along with integration with online gaming platforms. This will guarantee that its solutions adhere to the city’s online gaming rules.
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