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Argentina: Lottery agencies take prize tax reform proposal to Congress

Lottery agencies from across Argentina met for the first time at a national congress to address a tax threshold that has not been updated since 1974.

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Representatives from Buenos Aires, Córdoba, Santa Fe, Mendoza and San Juan attended the First National Congress of Lottery Chambers and Associations
The congress agreed to submit proposals to update the prize tax threshold and classify lottery agencies as MiPymes

Lottery agencies from across Argentina gathered in Córdoba for the First National Congress of Lottery Chambers and Associations, where representatives from more than twenty jurisdictions aligned on two legislative priorities and agreed to present joint proposals before the Chamber of Deputies.

The event was organized by the Association of State Lotteries of Argentina (ALEA), the Argentinian Federation of Lottery Chambers and Associates (FACALQA) and Lotería de Córdoba, and drew over 130 attendees, including agency operators, chamber representatives and gaming industry officials. 

Gonzalo Atanasof, President of Lotería de la Provincia de Buenos Aires, attended alongside the presidents of Lotería de Córdoba, Santa Fe, Mendoza and San Juan, as well as Mónica Vicente, Director of Games for Buenos Aires, and CAOLAB, the provincial agency trade group.

The morning session focused on the current state and future of official lottery agencies as physical points of sale in a shifting digital environment. The afternoon moved into drafting the formal proposals to be sent to Congress.

Atanasof said: "It was a very positive meeting that allowed us to share experiences and concerns with a federal perspective while advancing two very important points to present before the Chamber of Deputies of the Nation: having lottery agencies included in the MiPyme regime and updating the minimum amount established by Law 20.630, which has not been modified since 1974 and is today preventing sales growth for all lotteries in Argentina."

Patricio Gandola, President of FACALQA, said: "This meeting was long-awaited by all the chambers of agents in the country and represents a major step toward aligning criteria around the fight against illegal gambling, the prevention of problem gambling and the new commercial challenges of the entertainment industry. 

“We also advanced on legislative projects related to the reclassification of agencies as MiPymes and the modification of the minimum non-taxable threshold for prize taxation."

Marcelo Iglesias, President of CAOLAB, said: "We know that consumption habits have changed and that the crisis continues to hit us, but we also know we are still standing because we are a fundamental link in social action. 

“We must work together, lotteries and agencies, to generate new tools, technologies and strategies that allow us to retain customers, attract new audiences and strengthen our activity. We leave this Congress with a glimmer of hope."

The push for MiPyme classification would grant agency operators access to preferential financing lines and reduced compliance burdens currently unavailable to them under their current legal status.

Good to know

Law 20.630, which governs the minimum threshold for prize taxation, has remained unchanged since 1974, over fifty years without adjustment

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