Argentina raises Gambling tax

[rodskee]

Do they evaluate this kind of tax implementation through adding taxes was based on a standard business taxable income? If not I guess that's not fair to a gambling institution, since they're also into competition with other business who's running gambling. Though gambling using cryptocurrency currency was in demand by most online players, they shouldn't take advantage of that specially during a situation of pandemic.

I am sure the government already study of what is happening to their country, so if they want to add more taxes, they will calculate or simulate everything necessary. They have experts that can evaluate, calculate or other things that could happen during the implementations. Even if we think it is not fair for them, the business owner tries to obey what the government wants, and if they object to the tax implementation, they can ask to get relief.

Yeah we are just making our opinion here but the truth is the Argentina Government had their own reason and idea why putting this,for sur that they will not Let gambling business to Be losing ,so there are some points that the government knows the gambling operator can afford this increase.

The government will try to be fair for all business owners because they helped the country run by paying taxes.

Exactly that is what the government do.Without favoring any sort of business instead they Do analyze which can afford this and which cannot.
So the percentage of added taxes is depend in what business is this.

[Vishnu.Reang]

I think it's a good step. While it may not be in the best interest of the players, it is a good step for the country overall. An increase on taxes on casinos can help building a better economy or infrastructures for the people of the country only. Unless there are corrupt politicians who suck the money out of people of the country, an honest government can use the tax for people and citizens.

Raising taxes can never be good for the economy. It will result in tax evasion, reduced economic activity and capital flight. And in the long term, it can result in an increase in unemployment and crime. For the politicians, it is always very easy to increase the tax rates. But in most cases they don't think about the negative consequences, which can result from this move.   

[carlisle1]

I think it's a good step. While it may not be in the best interest of the players, it is a good step for the country overall. An increase on taxes on casinos can help building a better economy or infrastructures for the people of the country only. Unless there are corrupt politicians who suck the money out of people of the country, an honest government can use the tax for people and citizens.

I think while they are increasing the taxes for all legal gambling  in their country Better Find and Hunt the illegal operators because those are the reason why legal gamblers Lose some players.
And those operators are the one who must be Adding funds for this Corona Year.

Imagine how much money are they bagging while paying nothing to the government?(though maybe under the table to some Corrupt authorities)

[Chrystora123]

I think while they are increasing the taxes for all legal gambling  in their country Better Find and Hunt the illegal operators because those are the reason why legal gamblers Lose some players.
And those operators are the one who must be Adding funds for this Corona Year.

Imagine how much money are they bagging while paying nothing to the government?(though maybe under the table to some Corrupt authorities)

surely there are many illegal gambling operators who do not want to contribute to paying taxes to their state and they must be punished.  In the "PANDEMIC" era, raising taxes is only a solution that the government has found to help boost the country's economy, Argentina has an active gambler and it is very natural for gambling business owners to pay more taxes during this "PANDEMIC" period.  The good thing that is received when the gambling tax is applied is the convenience and safety of gamblers' funds, which is definitely protected by the state..

[kayvie]

I think it's a good step. While it may not be in the best interest of the players, it is a good step for the country overall. An increase on taxes on casinos can help building a better economy or infrastructures for the people of the country only. Unless there are corrupt politicians who suck the money out of people of the country, an honest government can use the tax for people and citizens.

Raising taxes can never be good for the economy. It will result in tax evasion, reduced economic activity and capital flight. And in the long term, it can result in an increase in unemployment and crime. For the politicians, it is always very easy to increase the tax rates. But in most cases they don't think about the negative consequences, which can result from this move.   

This tax increase is specific only to gambling. This can give a good outcome to the economy since we all know that there is a lot of money circulating in gambling. There will be no problems that might occur in the future such as unemployment, tax evasion, or reduced the economic activity as the main goal of this tax increase is in gambling.

[Mauser]

I think while they are increasing the taxes for all legal gambling  in their country Better Find and Hunt the illegal operators because those are the reason why legal gamblers Lose some players.
And those operators are the one who must be Adding funds for this Corona Year.

Imagine how much money are they bagging while paying nothing to the government?(though maybe under the table to some Corrupt authorities)

surely there are many illegal gambling operators who do not want to contribute to paying taxes to their state and they must be punished.  In the "PANDEMIC" era, raising taxes is only a solution that the government has found to help boost the country's economy, Argentina has an active gambler and it is very natural for gambling business owners to pay more taxes during this "PANDEMIC" period.  The good thing that is received when the gambling tax is applied is the convenience and safety of gamblers' funds, which is definitely protected by the state..

Tax evasion sounds fun when you first think about it, your profits are higher and you don't have to follow any government regukayion
But there is more to this than that. Paying taxes also gives you a lot of positive things. Imagine there is a dispute between the gambler and the casino. They can't call the police or involve lawyers since the business is illegal. Things become very shady when you operate illegally since someone else has to offer protection if not the police and government. This third party will likely demand a compensation as well.

[Maslate]

I think while they are increasing the taxes for all legal gambling  in their country Better Find and Hunt the illegal operators because those are the reason why legal gamblers Lose some players.
And those operators are the one who must be Adding funds for this Corona Year.

Imagine how much money are they bagging while paying nothing to the government?(though maybe under the table to some Corrupt authorities)

surely there are many illegal gambling operators who do not want to contribute to paying taxes to their state and they must be punished.  In the "PANDEMIC" era, raising taxes is only a solution that the government has found to help boost the country's economy, Argentina has an active gambler and it is very natural for gambling business owners to pay more taxes during this "PANDEMIC" period.  The good thing that is received when the gambling tax is applied is the convenience and safety of gamblers' funds, which is definitely protected by the state..

Tax evasion sounds fun when you first think about it, your profits are higher and you don't have to follow any government regukayion
But there is more to this than that. Paying taxes also gives you a lot of positive things. Imagine there is a dispute between the gambler and the casino. They can't call the police or involve lawyers since the business is illegal. Things become very shady when you operate illegally since someone else has to offer protection if not the police and government. This third party will likely demand a compensation as well.

That's operating in a dirty way and you can't protect your business in the long run as no illegal operation that would last. Getting a license is the best thing to do if you as an operator wants to sleep well every night, just follow the regulatory requirement, pay the right taxes and the future of the business will be crystal clear.

[Gozie51]

Paying taxes also gives you a lot of positive things. Imagine there is a dispute between the gambler and the casino. They can't call the police or involve lawyers since the business is illegal. Things become very shady when you operate illegally since someone else has to offer protection if not the police and government. This third party will likely demand a compensation as well.

This is a good example to this. Being honest to tax payment is better because you can make formal complain if things go wrong and you can get help as you are entitled to it but if you don't do the legal obligation of paying tax, you can't be assisted .

[Inkdatar]

Paying taxes also gives you a lot of positive things. Imagine there is a dispute between the gambler and the casino. They can't call the police or involve lawyers since the business is illegal. Things become very shady when you operate illegally since someone else has to offer protection if not the police and government. This third party will likely demand a compensation as well.

This is a good example to this. Being honest to tax payment is better because you can make formal complain if things go wrong and you can get help as you are entitled to it but if you don't do the legal obligation of paying tax, you can't be assisted .

This is why making a move to raise gambling tax could also give a big help both the company and the player rather than making it illegal. When a person afford to gamble during this pandemic it means he's willing to pay and understood the situation. And can afford in terms of financial status, just like in our country the government impose a high percent of tax though it helps to earn revenue of the government.

[FIFA worldcup]

https://www.gamblinginsider.com/news/10471/argentina-raises-online-gambling-tax-to-5

Apparently Argentina just raised their gambling tax to 5%.

The Argentine Chamber of Deputies has passed a law that will increase the online gambling tax rate from 2% to 5% in 2021. The new law was added to the National budget proposed by Economy Minister Martín Guzmán. The tax will apply to any online betting transaction. There’s also a 10% rise for the companies that operate in low-taxation countries.

Apparently the industry was unregulated for a long time and the government now decided to go for it since they will aid in the future stability and improvement in the financial situation.

The industry according to them apparently is able to get 2.4 billion dollars worth of revenue and which is inclined to help the country , 95% of the tax is going to go to the province.

What are your thoughts on this ??

Is this good/bad , how would we be able to cope up with the governmental bodies increasing the gambling tax thus shutting down the small business causing problems for the long run.

- it was a little sudden to increase it to almost double. The government never even helped the industry for the sake of the argument.

Most probably taxes are increased because of the pandemic and government need more funds to run the economy. Most of the governments are providing free treatments for covid19 and therefore they need to increase the tax in various other fields such as gambling industry. I think people should comply to their laws and accept these changes in the tax.

[death69]

It is true that the government never help gambling industrym however, by accepting it, at least they are not as strict and obsolete like other countries. Gambling is indeed bad to many people and places because people are addicted to it. But as long as you continue to prohibit it, it only causes trouble.

In my opinion, raising tax is a good move since it will help Argentina to develop a lot. Government uses tax to improve living standard and build living property. This is useful for their citizens

[GrinZ]

I do not think this will be a problem for physical casino owners, but how correct is it to make such a decision during a pandemic? Of course, physical casinos will continue to make more money than we think, as people who love gambling do not completely take it out of their lives.

[hulla]

Online gambler recover from pandemic how? The last time i checked physical gamblers and online gamblers spent more time gambling online and the pandemic doesn't by any chance stop them from playing every single day though i understand the tax will somehow affect some online player the country in the subject badly need some fund to save the country economy and the increased in tax fee will only hurt the gamblers but won't stop their interest in an online game of chance.

If anyone is affected by this tax then they can always move to cryptocurrency based gambling sites, it is a fact that the government increased the tax because of the economic slowdown due to the pandemic but as a player you can be smart to overcome these extra money you need to shell out and there is nothing that the government can do about it.

Yes they can move in cryptocurrency based gambling site, from here government has nothing to do to increase the taxes due to the fact that government has no control in crypto. Which in fact many gambling sites today were now i guess can already figured out the importance of using cryptocurrency as a base payments or payouts to their player. Can't resist the fact that due to pandemic, economic growth goes down and no other source of resource fund but the taxes that's why they taking the advantage of adding taxes.

Yes, the government have no control over cryptocurrency due to its decentralization but they can completely control both online and offline gambling sites that operate within there region with the inclusion crypto integration gambling site except the crypto that is done through privacy coins. However, operating against the rules and regulations of the country will only lead to disasters and there's nothing bad in the wealthy citizens with good earning business helping the country through their tax payment.

Online gambler recover from pandemic how? The last time i checked physical gamblers and online gamblers spent more time gambling online and the pandemic doesn't by any chance stop them from playing every single day though i understand the tax will somehow affect some online player the country in the subject badly need some fund to save the country economy and the increased in tax fee will only hurt the gamblers but won't stop their interest in an online game of chance.

If anyone is affected by this tax then they can always move to cryptocurrency based gambling sites, it is a fact that the government increased the tax because of the economic slowdown due to the pandemic but as a player you can be smart to overcome these extra money you need to shell out and there is nothing that the government can do about it.

Yes they can move in cryptocurrency based gambling site, from here government has nothing to do to increase the taxes due to the fact that government has no control in crypto. Which in fact many gambling sites today were now i guess can already figured out the importance of using cryptocurrency as a base payments or payouts to their player. Can't resist the fact that due to pandemic, economic growth goes down and no other source of resource fund but the taxes that's why they taking the advantage of adding taxes.

Do they evaluate this kind of tax implementation through adding taxes was based on a standard business taxable income? If not I guess that's not fair to a gambling institution, since they're also into competition with other business who's running gambling. Though gambling using cryptocurrency currency was in demand by most online players, they shouldn't take advantage of that specially during a situation of a pandemic.

First of all, the pandemic situation didn't affect the online cryptocurrency gambling site and the last time i vhecked it only boost the business and with a country like Argentina where 98% of their people are sports enthusiasts competition within the gambling company won't affect every gambling site. However, the tax was increased from 2% to 5% because the country needs fund and the gambling industry was not regulated before and some gambling used it to their advantage.
Meanwhile, the man in charge of the tax increase stated the fund will be used to help the country especially the province where the gambling site operated in other to create more jobs and opportunities.

[ecnalubma]

But I bet casinos won’t be much affected by these changes, Casinos are income generating businesses no matter what rates of taxes are implemented by the government they can still meet those type of obligations without disrupting their operation. Casinos play vital role in some developing countries I think government won’t be harsh to them most especially to those regulated one’s.

[RealMalatesta]

All nations should have a very very high rate for gambling taxes, as much as 90% tax rate on the gains you take out of the business. That is the part I hate, if a company gives a salary, if they give shares, if they just basically take money out of the company for any reason, there should be a high tax rate for it after a certain amount for the company as well.

Normally it seems like when you pay a salary of 250k to worker, but the worker gets only 150k of it, company says we paid and only the worker loses. However if you make it like worker gets whatever offered and the tax is paid by the company, the world would have been a much better place.

Worker should not be even offered the amount with tax on it, whatever you tell worker gets will be what they see in their account, the company should pay all the taxes, and higher the salary the crazier it will get, with 1+ million salaries should be 90% for taxes.

[South Park]

for what I have seen in my country (Italy) raising taxation for gambling isn't a good solution since it will force people to play with low jackpot/odds within a monopole!
I think that in the long run with more of these regulation arising in the world, more players will prefer to use a cryptocurrencies gambling website and not a classic FIAT (or official one).

And even after you get all of that it would have been for nothing if you do not have control of your emotions and just when you need it the most you do not apply those techniques whether because you are afraid or because you are too greedy, this is one of the many reasons why trading is so hard for people to understand and to profit from, they know what they need to do but when the times comes they decide to not do it even if their system tells them that is the right move and as long as people keep that mentality they will never become successful traders.

[Japinat]

But I bet casinos won’t be much affected by these changes, Casinos are income generating businesses no matter what rates of taxes are implemented by the government they can still meet those type of obligations without disrupting their operation. Casinos play vital role in some developing countries I think government won’t be harsh to them most especially to those regulated one’s.

Of course, actually it's easy for casinos to understate their income because some gamblers paid in cash and since the casino has their own system, they can just easily manipulate that to minimize the tax they are paying, with this increase of taxes, it will not affect them so it's not a big issue. It's not an implementation that will make casino business stop, they will never stop as they are constantly making money.

[STT]

  Its smarter to tax then to ban and 5% still seems reasonable so long as it works both ways and the government provides benefits to operators in some way.   Gambling along with a few other industries are valuable in being outside the normal business cycle.   Argentina from what Ive heard has problems with currency stability which makes the BTC betting highly valid as it hedges the currency failure also so its also making it harder to tax revenue I suppose as the business is then more global.   Im not a fan of various restrictive practices on business as they must always stay competitive worldwide to gain trade and just locking people into the local economy is contrary to that.

[yazher]

for big companies that offers betting services i don't think there would be a problem but just like what you have said small business operators maybe in trouble. also i think it's good way to have extra fund to allocate to the province in order to help them to improve or grow i'm not really sure what could be the real cons and pros of this implementation.

Yeah! that's true those big companies already spent millions on their platform and the raise in tax doesn't really matter to them. in fact, it would make them happy because those small gambling businesses will soon close and they will have fewer competitors in the long run. Of course, the government will benefit to this new law and with their current economic situation, these changes really help a lot.

[virasog]

I do not think this will be a problem for physical casino owners, but how correct is it to make such a decision during a pandemic? Of course, physical casinos will continue to make more money than we think, as people who love gambling do not completely take it out of their lives.

The casino owners will continue to make money but now they will have to pay more taxes. This means that it will cut down their profits by some margin.
Although it may not hurt them much, but still if they make a lot of money through gambling, they will have to pay taxes in those proportions also.