The Provincial Institute of Lottery and Casinos (IPLyC) has officially put in place the new tax on prizes on slots.
Taxes will be used in order to help create a new Integration and Social Development Fund to finance infrastructure and assistance programs in social areas. Owners of casinos and bingo halls will act as withholding agents and will be responsible for collecting the new tax.
The tax ranges from 1 per cent to three per cent on prizes. The new regulations were published in the Official Gazette of the Province of Buenos Aires and was signed by the head of the IPLyC President Matías Lanusse. According to the resolution the contribution to the fund will be placed in the hands of the entities that run casinos and bingo halls in the province of Buenos Aires.
The casino or bingo hall will calculate daily the total contributions that must be integrated in accordance with the payments generated in each room including all the tickets generated both via cashiers and via Ticket-In, Ticket-Out (TITO) machines.
In November the Governor of Buenos Aires, María Eugenia Vidal announced that the government would impose the new tax on winnings in order to raise funds for the most vulnerable sectors of society.
A similar tax was approved in December by the government of the Autonomous City of Buenos Aires which approved the Fund for Integration and Social Development, to finance infrastructure and assistance programs in social areas. The new fund will be paid for partly by resources generated from a 2 per cent new tax imposed on the prizes awarded by slot machines on players when betting on the slots located in the capital both in the racino located under the racetrack in Palermo and the floating casino in Puerto Madero.
The new taxes on prizes in both the city and the province of Buenos Aires are a response to a round of drastic cuts to budgets as the government tries to reduce the deficit. The latest budget made sharp reductions in government spending and high tax increases aimed at achieving fiscal balance in 2019 at the behest of the International Monetary Fund.