Argentina’s lawmakers have made good on their threat to hike taxes on online gambling, while Buenos Aires is gearing up to fight internationally licensed gambling competitors.
This week, Argentina’s Chamber of Deputies followed their Senate counterparts in approving the country’s 2021 National Budget, which contains a clause boosting the tax on ‘digital’ gambling from 2% to 5% of the “gross value of each bet and/or game.” The tax rises to 10% for operators based in jurisdictions that Argentina considers to be tax havens.
The task of monitoring for tax haven gambling traffic will be split between the state telecom regulator Enacom and the state-owned telecom outfit Argentine Company of Satellite Solutions Sociedad Anónima (ARSAT), which will receive a 5% cut of the new online tax. (Try not to spend it all at once, guys.)
Argentina has no federal online gambling regulatory structure and the new tax has been criticized by the Association of Lotteries, Casinos and State Quinielas of Argentina (ALEA), which believes taxing state-approved operators will only drive further the flow of cash to those online gambling tax havens.