Legislation
Argentina – Deal reached over gaming tax in Buenos Aires
By Phil - 11 December 2013
A major deal has been struck between the Government of the Autonomous City of Buenos Aires and the national government over gaming tax within the city limits.
Beginning in 2014 the city of Buenos Aires will receive an additional $300m pesos annually from gambling entrepreneur Christopher Lopez whose company Casino Club has the right to run the slot machines in the racino in downtown Buenos Aires and has a significant share of the floating casinos moored permanently to the city harbour.
The new law, which was passed by a majority of 42 votes to 15 votes in the city legislature must, however, first be approved by the Ministry of Social Development and the Office of the President before it goes into effect. According to the agreement, the city will be paid an additional 300 million pesos annually from gambling from 2014. In addition, the agreement provides that the National Lottery will also transfer an additional fee which will be paid by gaming operators which will be the equivalent of 3 per cent of the net profits generated by both the floating casinos and the slots based in the Palermo Racetrack. In return, the measure contains an exemption from the payment of gross income tax for the gambling establishments based within the city limits and the casinos will no longer have to pay a debt of between $1.5bn pesos and $2bn pesos in gross gaming back taxes.
City Mayor Mauricio Macri has made a number of attempts in the past to increase gaming tax revenue from gaming and if the deal goes into effect it could prove a major victory for his administration. While the city of Buenos Aires has been autonomous since 1994 it is the National Lottery Commission which has control over gaming. While a 2007 Supreme Court decision ruled finally that the casinos came under federal, not city jurisdiction both parties have continued to battle it out over who should have final say when it comes to casino gaming in the city. In November, city legislators agreed to draft a new gaming law which could not be subject to appeal and could not be overruled in local courts.
