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Argentina – Tax for casinos in Rio Negro agreed

By - 12 August 2013

As previously reported in July the government of the province of Rio Negro announced a 75 per cent tax rise on casinos.

However, the tax was much less than had previously been announced by Governor Alberto Weretilneck in 2012. In 2012 Governor Weretilneck decreed that a yearly licence fee of 150m pesos (US$27.7m) would be in place for the casinos in the province.

According to decree 1140 which was officially signed last week by the Lottery Organisation of Rio Negro province and casino operators Entretenimientos Patagonia and Crown they will instead pay 101m pesos (US$18.6m) in licence fees. This was after the planned 150m peso licence fee announced in 2012 by Governor Alberto Weretilneck met with fierce resistance from local operators who claimed in the courts that it was a violation of their original licence agreements and was excessive.

In a statement released last week the province announced that the new tax rate had been formally agreed as it meant a significant increase in tax revenue made from gaming. According to the official statement the new agreement means that taxation for Entretenimientos Patagonia will increase by 60 per cent compared to 2011 while Crown will pay more than 80 per cent compared to 2011.

Entretenimientos Patagonia operates the casinos in the towns of Bariloche, El Bolsón and Jacobacci while Crown operates casinos in Cipolletti, Las Grutas, El Cóndor-Viedma and General Roca. The new agreement also officially confirms the building of a new hotel in the town of Cipolletti.  In July the government announced that building work on a hotel near the casino in the town of Cipolletti must ‘begin immediately.’ The licence was granted 15 years ago for a hotel, convention centre and casino. Last week Crown formally announced that it would complete the building of the hotel adjacent to the casino and that it would invest a total of 60m pesos (US$10.8m) in building a four star hotel.

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