Legislation
Argentina- Tax hike for Rio Negro province
By Phil - 8 July 2013
The government of the province of Rio Negro has announced a 75 per cent tax rise on casinos.
It is estimated that casinos will generate more than 101m pesos (US$18.6m) by the end of 2013 due to the new tax. The new law, which was passed last week, establishes a minimum payment of US$18m for combined yearly licence fees but casino tax generated revenue could increase depending on gross income. The new tax means that Rio Negro now ranks amongst the leading provinces in Argentina when it comes to gaming tax generated revenue.
The new licence fees met with fierce resistance from local operators who claimed in the local courts that it was a violation of their original licence agreements. However, it is believed that the new fixed fees will only be in place for 2013 and that the tax rate will revert once more to a percentage of casino income next year.
The province has two casino operators: Entretenimientos Patagonia and Crown. 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 yearly fee is higher than in 2011 but lower than the figure announced by Governor Alberto Weretilneck in 2012. In 2012 Governor Weretilneck announced a yearly licence fee of 150m pesos (US$27.7m) for the casinos in the province whether the operators ‘liked it or not’ in order to raise money for social welfare programmes.
The government has also announced that building work on casino in the town of Cipolletti must ‘begin immediately.’ The licence was granted 15 years ago for a hotel, convention centre and casino.
