Legislation

Argentina – Budget proposal for 150 per cent increase in online gaming tax gets further approval

By Phil - 23 November 2020

The Argentine Chamber of Deputies has approved an increase in the level of taxation on online gaming from two to five per cent proposed in the National budget written by Economy Minister Martín Guzmán.

The new rate will come into effect in 2021.

Economy Minister Martín Guzmán said: “This is a key step in our journey: a nation that grows and that provides jobs and certainties. Our economy’s recovery with macroeconomic stability is our horizon and the budget, our tool; and the key element in our strategy. The recovery of the activities with macroeconomic stability is on the horizon. The budget is the tool and pillar of our strategy.”

Online gaming is expected to generate $2.4bn in revenue each year in Argentina. The new proposals will see 95 per cent of the tax go to the country’s provinces. The government will have the right to check bank and billing data to keep track of online betting behaviour.

The Argentinian State Lottery Association (ALEA) said it had concerns over the move. It claimed: “Any tax on official gambling at a national level favours the expansion of illegal gambling, by increasing the tax pressure on the regulated sector. This directly affects the local economies since it reduces the income that the provinces and the City of Buenos Aires obtain from gambling through regulatory entities, in their respective jurisdictions. It also decreases the funds allocated to social entities.”