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Argentina – Nationwide strike threatens to halt gaming in Argentina
By Phil - 6 December 2016
Workers in the gaming sector in Argentina have called an indefinite strike in protest of the decision to raise taxes which they say could jeopardise thousands of jobs.
The Union of Gaming Workers (ALEARA), the Association of Racetrack and Betting Agency Personnel (APHARA) and the Union of Workers in the Gastronomic Sector (UTHGRA) have joined forces to protest new taxes now being considered by the government. The strike began on December 5 and has so far affected bingo halls, racetracks, casinos and lottery agencies across the whole of Argentina. Around 250,000 workers have gone on strike.
The strike is in response to news that the Cambiemos Party which is led by President Mauricio Macri plans to make changes to income tax laws which will affect the sector. The government aims to raise $6bn pesos in additional funding via tax on the gaming industry. The government plans to impose a fixed tax of $40,000 pesos on the 80,000 slot machines operating in the country and charge 0.75 per cent on wagers via an indirect tax.
According to other reports, the government of the province of Buenos Aires is also looking to increase taxes on gross gaming revenue from 12 per cent to 14 per cent on bingo halls and could add an entrance fee of $20 pesos per person in the province. It is estimated that about 40m tickets would be collected annually. Of the $800m generated by the new entrance fee, half would go to the municipalities where the bingos are located and the rest would be destined for the province to be distributed for campaigns and programs aimed against gambling addiction.
The governor of Buenos Aires María Eugenia Vidal and her economic team initially decided not to increase taxes on gross gaming revenue from 12 per cent to 19 per cent an issue a figure which would have in all likelihood led to a long legal battle in the local courts. But last month The Minister of Economy for the province of Buenos Aires, Hernán Lacunza said that he had not ruled out a tax increase on bingo halls and left open door for members of the opposition parties to raise taxes for the industry. It is believed that the new tax increase now has the backing of Vidal.
“If the initiatives that speak of imposing a tax on bets and a payment for each slot machine go forward, companies will be on the brink of bankruptcy and thousands of workers will lose their jobs,” said Ariel Fassione from The Union of Gaming Workers. “The sector already pays 60 per cent of tax revenues, not counting other social charges, and inevitably any new modification will trigger dismissals, and therefore we join our partners from the gastronomic industry, from the race tracks and from provincial agencies to strike and make them listen.”
A statement from the Argentine Chambers of Casinos and Bingos and Annexes (Cámara Argentina de Salas de Casino, Bingos and Anexos) warned that as many as 20,000 jobs are at risk.
“This measure goes against the political promises of this government to reduce the tax pressure on private activity,” the organisation said in a statement.
