The South American nation of Argentina is substantially boosting its share of the internet gaming revenue. Beginning in 2021, the levy on digital wagering will surge from a paltry 2% to a more substantial 5%. This action, championed by Finance Minister Martín Guzmán, is a crucial element of Argentina’s strategy to reinforce its national coffers and gain authority over its flourishing internet gaming sector.
This revised tariff will be levied on all digital gaming dealings, and it escalates further for businesses functioning from tax havens – they will be subjected to a 10% tax. This sends a strong message that Argentina is resolute about securing income from its online gaming industry, projected to generate close to $2.4 billion each year.
Previously, Argentina has witnessed minimal returns from this revenue stream due to insufficient national supervision. This fresh proposition seeks to alter that, with 95% of the tax proceeds being allocated among the provinces. To guarantee openness and adherence, the government will possess the power to oversee financial transactions and invoicing data linked to internet betting.
This clampdown on unregulated gaming is a collaborative endeavor. The Argentine telecommunications firm, Arsat, will participate in supervising gaming operations, and individual provinces are also taking measures to institute their own regulations. The city of Buenos Aires, as an example, has already established the framework with finalized regulations for online wagering that were ratified in September.
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