Argentina: a congresswoman wants to increase taxes on online betting to fund neighborhood clubs –

An initiative presented in the Chamber of Deputies seeks to modify the tax burden on online betting in Argentina and use those resources to strengthen neighborhood clubs. The project was promoted by the Kirchnerist deputy Natalia Zaracho and proposes creating an economic assistance tool called “Club Card”.

The proposal aims for clubs to have a stable source of funding to cover operating expenses, maintenance, infrastructure, equipment, and other needs related to their sports and community activities.

Argentina and Its Maze Regarding Online Betting.

The point that directly impacts the gaming industry is the mechanism chosen to finance it: an increase in taxes on online betting.

What the new online betting tax would be like

The project proposes a rate structure that varies according to the origin of the participants in the operation. The general rate would be 10% on the net value of deposits made by the bettor. However, the initiative considers different scenarios:

• 10%: general rate.
• 5%: could be reduced by half if the company makes investments in Argentina.
• 20%: when a foreign subject is involved in the bet.
• 30%: when that foreign subject is located in a tax haven or low-tax jurisdiction.

In this way, the project seeks to differentiate between operators that have presence and investments in the country and those linked to structures based outside Argentina.

What is the “Club Card”?

The heart of the project is the creation of a “Club Card,” defined as a monthly economic benefit intended for clubs to cover various necessary expenses to continue operating.

Read more The Codere Poker Series begins at Casino Carrasco

Among the intended uses are maintenance of facilities, infrastructure, purchase of equipment, and operating expenses, as well as expenditures related to sports and community activities.

The initiative also seeks to expand the number of institutions that can access mechanisms linked to the right of sports training.

Zaracho’s argument is that clubs fulfill a function that goes far beyond sports practice: they are spaces for support, training, and community gathering, especially important for children and youth.

In the project’s rationale, Zaracho states that choosing online gaming as a funding source responds to a criterion of “distributive justice.” The deputy proposes that part of the resources generated by an activity considered highly profitable can be allocated to institutions that fulfill a social, educational, sports, and community function.

The project also focuses on the impact of betting among young people and the most vulnerable sectors, one of the arguments that in recent years has appeared more frequently in the Argentine debate about the growth of online gaming.

The proposal, therefore, combines two discussions currently affecting the sector: how to regulate and tax online betting and how to obtain new sources of funding for neighborhood clubs.

Read more How to get the 1st deposit bonus on GGPoker