Supplier News

Argentina – Tax revenue up by 61 per cent in Cordoba

According to local press reports the Lottery of Cordoba (Córdoba Lottery SA) distributed a total of 13,049,214 pesos (US$2,401,845.24) in gaming tax revenue the first six months of 2013.

The money, which was divided between seventeen local municipalities, was generated by the three per cent fee which local casinos operator Compañía de Entretenimientos y Turismo (CET) pays for the operation of slot machines in the province. The sum is 61% more when compared to the previous year. 

Compañía de Entretenimientos y Turismo (CET) runs 19 slot parlours in 17 locations throughout the province of Cordoba. Tax income generated by the company has increased significantly since 2007 when a total of 7,106,118 pesos were distributed among the seventeen municipalities. In 2008 this increased to 10,355,739 pesos and while there was a slight decline in 2009 gaming tax revenue had quickly risen to 11,731,912 by the end of 2010. In 2011 revenue increased again to 16,691,513 pesos while in 2012 tax revenue generated by slot machines stood at 21,099,714 pesos.

The municipality which has benefitted the most from the growth in the sector has been popular tourist destination Villa Carlos Paz which in the last six and a half years has received a total of 23,141,596 pesos which has been distributed to social welfare programmes. When looked at together between 2007 and the first six months of this year the Lottery of Cordoba  has distributed a total of 89,968,401 pesos in all to the 17 municipalities due to money generated by slots rub by the operator.

The province of Cordoba which is located in the geographical centre of Argentina is becoming an increasingly popular tourist destination for locals and in common with the rest of the tourist industry in Argentina has benefited from the sharp growth in the domestic tourism. This is due to the present currency restrictions now in place. In the face of rising inflation the government has initiated a number of measures designed to dissuade Argentines from using dollars and stop the flight of savings from the country. In July 2012 the government banned people from buying dollars for the purpose of saving them and Argentines are only permitted $100 a day when travelling outside the country.  They are also subject to a 20 per cent tax on credit- and debit-card purchases made abroad. Consequently more and more Argentines are spending their holidays locally.