Argentina Cracks Down on Online Gambling With New Tax Hike

The Argentinian legislature recently approved legislation that will increase taxes on internet gambling from 2% to 5% beginning in 2021. This is significant because it is part of a broader budget plan presented by Finance Minister Martín Guzmán. The levy will apply to all internet gambling transactions, with a hefty 10% tax levied on businesses operating from those shady tax havens.

Guzmán is aggressively promoting this budget as the foundation for Argentina’s economic recovery, with a focus on job creation and stability. He believes that this budget is the instrument to make it a reality.

Consider this: internet gambling generates close to $2.4 billion in revenue each year in Argentina. However, because it has been a bit of a free-for-all with little federal supervision, Argentina has yet to see much of that money. This new strategy intends to change that, with 95 percent of tax income going directly to Argentina’s provinces. They’re even empowering the government to monitor online bets using bank and billing information. Talk about a crackdown!

They’ve even enlisted the help of Arsat, Argentina’s telecommunications company, to keep track of gambling operations.

Across the country, though, it’s a mixed bag. Each province is rushing to establish its own set of regulations for internet gambling. Some are opting for band-aid solutions, while others are permitting temporary operations. Buenos Aires, on the other hand, is ahead of the game, having finalized its online gambling regulations in September.