The Argentine Lottery Association (ALEA) has denounced the national government’s proposal to raise online gambling levies.
The ALEA has voiced strong disapproval of the government’s scheme to hike online gambling taxes from two percent to five percent.
The ALEA has criticized the federal government’s proposal to increase gambling taxes.
Economy Minister Martín Guzmán recently declared the alteration, which is part of measures suggested in the 2021 national budget to stabilize the national finances following the COVID-19 pandemic.
The ALEA strongly opposes the tax hike and has provided several justifications for why it will hinder the industry’s progress.
It highlights that any federal gambling tax will encourage the expansion of illicit or clandestine gambling by increasing the tax burden on the regulated sector.
It maintains that federal taxes also infringe upon the constitutional powers of the provincial jurisdictions and the Autonomous City of Buenos Aires, as they transfer control of gambling from the regions to the national government.
It continues to assert that the tax increase will have a detrimental impact on local economies, as it will diminish gambling revenue for the provinces, thereby reducing funds allocated to provincial public services.
Although the group asserts it doesn’t stand against federal actions to stop unlawful betting, it cautions that increasing taxes on legal online gambling would have a small effect on fighting illicit activities.
The group highlights that most provinces are contemplating or moving toward regulating the channel in the aftermath of the COVID-19 outbreak.
The group declares that Argentina’s official gambling industry generates around 240,000 jobs, including those in gambling venues, authorized retailers, regulatory agencies, and service providers. As part of the formal economy, these entities pay taxes according to their national, provincial, and municipal laws.
On the other hand, the group says that clandestine gambling has no tax responsibility, employs black market workers, and exploits existing legal loopholes to conduct gambling operations.
Buenos Aires City was the first area in Argentina to formally establish licensing requirements for online gambling, approving online gambling regulations in February of this year.
In October 2020, Codere became the first operator to take significant steps towards obtaining a license, with its proposal approved by the Buenos Aires City Lottery Company (LOTBA), the operator of the Buenos Aires City lottery and the de facto regulator of online gambling.
Following the submission of its proposal, the license will now put into action the strategies it outlined. This includes technical development and integration with online wagering platforms. This is to guarantee that its solutions adhere to the city’s regulations for online gambling.
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