Buenos Aires Province regulates online gambling and sets new tax on slots

The voting decision was made in the framework of the 2019 Budget proposed by Governor María Eugenia Vidal.

The bill received 61 positive votes and 23 negative votes, and entails a 38% raise on the real estate tax -whether urban or rural- for the second time in a row in the Province. Additional taxes were ruled out.

The same law creates two new gaming taxes: one for online gaming that, until now, was not regulated and therefore not taxed, and a 2% tax on slot machine winning bets. With this nex taxation on gambling, the Province expects a collection of 5 million pesos.

The allocation ratio -set by this new law and the Single Distribution Coefficient (CUD)- will be 7% for the municipalities of the Buenos Aires Province, and 3% for the communes in which gambling venues are being operated.

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“          The same law creates two new gaming taxes: one for online gaming that, until now, was not regulated and therefore not taxed, and a 2% tax on slot machine winning bets.

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Regarding online gambling, Tax Law 2019 Art. 142 and 143 detail the modalities that will now be regulated: "casino games - table games and automated electronic gaming machines - sports betting, lotteries and those defined by regulation, where money is risked on future and uncertain results, regardless of the degree of player skill or the 'luck' factor"

The provincial Executive Power will have the role of regulator, through the Provincial Institute of Lottery and Casinos (IPLyC) of Buenos Aires. The creation of the Registry of Online Gaming Licenses is determined, which will include those who are operators of the licenses granted. A maximum of seven licenses is established.

Operators must pay Gross Income taxes in the specific gaming segment that may apply, in addition to registering a domain for the development and commercialization through the Internet of gaming activities, as determined by the IPLyC.

Gross profits derived from online games will be distributed in the following manner: 8% will be allocated as part of the General Income funds -to cover education, promotion and social assistance policies-, and the remaining percentage will go to the operator, after deduction of the fee established by the regulations.

As for contributions, operators must pay a fee to IPLyC -in addition to Gross Revenue (15%)- equivalent to no lesser than 2% of gross profits.

Parallelly, gambling addiction was declared of provincial interest. The proposal submitted by Deputy Liliana Denot seeks an integral approach for people with addiction to gambling. In this case, the initiative passed to the Senate, where it will continue its treatment.