Argentina raises Gambling tax

[carlfebz2]

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.

Taxation is never be a  bad thing unless if those funds are used in other means or not totally on the proposed target.Actually 5% is just too small compared into my countries tax on everything
for 12% for a business including gambling business which i do really see this thing wont really be that big.

When it comes to government then you can expect that they will really be implementing out those laws as for benefit for the entire country and no excuses for this.

Even if you insist on that sudden bump then theres nothing you can do yet it cant really be stopped and wont have any choice but to follow.

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[XCANA]

I wouldn't say the 5% tax is big but, what we should consider first is what's the capacity of the government in question, they are third world country and the problem of the corona-virus has done more harm than usual and most countries are sourcing withing their parameters to sustain the economy. The only problem will be for small scale gambling platforms but for bigger gambling platforms there won't be any damage with their existence in the issue of the 5% tax from Argentina government.

[Casdinyard]

In my country, there's also a  5% tax on gambling activities. Nothing changed in my opinion, people are still engaging into such activity.

Apparently increased in tax these may have positive and negative impact. But we can't countries implementing it because struggling economies due to the COVID-19 crisis. We can all relate to this, small businesses might suffer to these tax hike and not only single industries. But the government should maintain balance in collecting taxes or become reasonable at least.

Well, it is possible that economic problems are concerned with the increase of the tax revenue, maybe to somehow have something to generate more resources to battle issues economies are facing at this moment since not all companies and businesses are operational at this point and may it also affects to the "contribution" which pushed the said government to also make changes on activities existing under authority.

[Smartvirus]

If this was done in other to stop or reduce the gambling population, it would have been a failed attempt but, if it is to harness the betting industry for community development, then it is a give back to the community process and a wise decision. Though, in doing so, the government should consider the tax imposed on the individual platforms, the amount of customers that patronize them on a yearly base so as not to over tax and hurt the platforms as they don't only generate revenue but also provide some gainful employment for youths as it's agents. The betting industry is one of the most patronized in the world and though it's being criticized on a large scale, more continues to emerge and receives patronizers but must of all, it generates revenue so, it should be weighed and managed properly.

[dimonstration]

I wouldn't say the 5% tax is big but, what we should consider first is what's the capacity of the government in question, they are third world country and the problem of the corona-virus has done more harm than usual and most countries are sourcing withing their parameters to sustain the economy. The only problem will be for small scale gambling platforms but for bigger gambling platforms there won't be any damage with their existence in the issue of the 5% tax from Argentina government.

Before taxes were only shouldered by the owner in physical casino or unnoticeable by gamblers as they will cut only few amount and we not really see their bills, now it's visible in online transactions and enumerated, we have to deal with it in these new normal we're everything is online.  There are more line up of applications too that will be required in tax in my country.we have 12% tax in our country for every transactions or goods purchase. In terms of gambling as well other services taxes were  deduct in the amount used only in receipts will be able to see those tax

[Fredomago]

I wouldn't say the 5% tax is big but, what we should consider first is what's the capacity of the government in question, they are third world country and the problem of the corona-virus has done more harm than usual and most countries are sourcing withing their parameters to sustain the economy. The only problem will be for small scale gambling platforms but for bigger gambling platforms there won't be any damage with their existence in the issue of the 5% tax from Argentina government.

Well observed, with this pandemic every possible sources of taxes will be chased by the government, they needed to implement it to
work out with their economy, with so many expenses and not getting anything from the usual venue of taxes they will sort it out and
this gambling business are not exempted.

Big and well established gaming business would not be hurt that much  with this implemented taxes but for those small time gambling
house it will be a burden since they needed to also add this to thier monthly expenses.

[leea-1334]

I never really knew Argentina was big on gambling, but I guess every country that does not really tax it highly will eventually get a lot of black market activity;) This will also be good news for crypto possibly, if Argentinians are tired of their peso losing value at the casino;) Everything is coming together!

[tyz]

The government has to find a way to help the people of his country, for the vaccine, assistance to the people, ...

Well, that can't really be the reason. Argentina has been chronically broke for decades. So it always needs money and I think the country has milked everyone else and now it turns to gambling. But I dare to doubt that the industry in Argentina is big enough that it can collect a lot of taxes there. Most gambling takes place underground anyway.

[Krislaw]

Well, for me, 5% is actually huge amount of tax on winnings and 10% for companies that run in other low taxation countries. This is just a like a reap off. This tax would hurt if winnings is huge and would even hurt more is the government doesn't make use of it in the right way. And this can't be good for small operators. Some might move their business elsewhere or look for a way to bypass tax.

[harizen]

I was surprised that the gaming sector in that country is barely regulated despite online gaming earning close to $2.4BN in revenue annually. Surely, that figure is prior to the pandemic meaning their online betting is really active. With or without pandemics, it makes sense to raise the gambling tax associated with online betting there especially today.

I don't understand how taxation there works but I don't see a negative impact of the proposed law. A 3% rise in tax shouldn't be a problem in an industry wherein showing good revenue yearly.

[just_Alice]

I think that's a pretty fair move, considering that Argentina used to have one of the lowest tax rates on gambling (compare to the US winning taxes around 20% and 15% in the UK). It's understandable that the government wants to benefit more to recover its economy, especially now.
 
However, they probably should've done it gradually, as such a sharp rise in taxes might be ok for large companies, but will most likely adversely affect medium and small business.

[YuginKadoya]

I think they are doing this because of the increasing popularity and regulated online gambling in Argentina, well this will surely benefit the country of Argentina but it will mostly not going to make a big deal for gamblers in my opinion, and if there are many gamblers I think it will be truly OK for gambling owner for increasing a 5% tax, I think this is OK than having gambling ban in Argentina.

[TimeTeller]

I think they are doing this because of the increasing popularity and regulated online gambling in Argentina, well this will surely benefit the country of Argentina but it will mostly not going to make a big deal for gamblers in my opinion, and if there are many gamblers I think it will be truly OK for gambling owner for increasing a 5% tax, I think this is OK than having gambling ban in Argentina.

And if the proceeds will really go to its people, why not?
But if it will go only to few pockets, then there's problem with the situation.
We know that corruption is also a long-running serious problem in this country.
So hopefully they will keep their word that the large portion that they will collect from gambling will indeed go to their people in need.

[ReiMomo]

The purpose of Argentina's government is good because we know that most countries now are struggling to recover their economy that most countries the same problem and how to solve it, due to the pandemic, governments worldwide seeking a way to recover this problem.

We know that the gambling industry has a big help and most of them are now operating continuously, they are good of a source of revenue, and increasing their tax is reasonable and worth it for the sake of their economic growth. But do you think this will affect the gambling business?

[Fatunad]

The purpose of Argentina's government is good because we know that most countries now are struggling to recover their economy that most countries the same problem and how to solve it, due to the pandemic, governments worldwide seeking a way to recover this problem.

We know that the gambling industry has a big help and most of them are now operating continuously, they are good of a source of revenue, and increasing their tax is reasonable and worth it for the sake of their economic growth. But do you think this will affect the gambling business?

5% is total revenue wont really be that hurting that much yet is there any viable options for them to complaint?

As a business then you wont have any choice or else it would really be on such closure for not complying on paying up tax on the right way.

Theres no doubt that these businesses is one of the most important due to big contribution and theres no doubt that government
will see this as a good one and hopefully it would really be applied well into those tax that had been accumulated.

[sunsilk]

The government no matter what industry you are with, they'll raise you with the taxes. If the reason is to help the provinces, that's the solution that they've resorted. Increasing tax are normally happening and usually in the gambling industry, they're getting huge taxes because big money is getting in on it.

Having that said, 5% won't affect much the industry or gambling businesses. They're even lucky that they only got a raise with that percentage.

[goinmerry]

And if the proceeds will really go to its people, why not?
But if it will go only to few pockets, then there's problem with the situation.
We know that corruption is also a long-running serious problem in this country.
So hopefully they will keep their word that the large portion that they will collect from gambling will indeed go to their people in need.

There is no perfect government. Corruption is always there even in the top countries. But still, there are good authorities that monitor if the funds were used for the right purpose. Any body within the government can't just easily make some corruption as there are other eyes that look to them.

That gambling taxation in online betting is a good action by the Argentinian Government. As mentioned in the article, it was barely regulated. It means it's already several years wherein gambling operators are enjoying and take massive revenue but only paying small tax. From $2 to $5 increase, it's just a piece of cake to these operators.

[HaXX0R1337]

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.

The pandemic has brought most of the countries to its knees and it is a smart move by the government to tax the gambling sector to raise the money, there are countries that raised the tax on liquor and tobacco in the past few months and we should expect these sort of increase in other sectors as well and this is not a substantial increase in tax as well to be worried.

[rhomelmabini]

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.

Of course that's always the reason behind some changes if it's come from the government but it's good to know the opinion of some Argentine people in this thread and at the same time a gambler as well. It's not a bad thing IMO but I think everything must goes on on the side of the gamblers sudden increase or not.

At first there will be some complaints I suppose since it's new and may be a sudden news to some gamblers but time will tell the people tend to adapt it and besides these governments really love centralizing these kind of regulations.

[StephenJH]

The negative impact will be there for gamblers from Argentina, it is the right time for gamblers from Argentina to choose anonymous gambling and avoid paying the high tax. 2.4 billion dollars worth of revenue is not a small amount considering the huge turnover of gambling funds but the government was able to choose another method for adding more money to the government budget. The gamblers shouldn't be a target for this purpose, in my opinion.