The government of Neuquén, Argentina, is promoting a tax reform that will substantially modify the tax burden on betting companies operating in the provincial territory. The administration of Governor Rolando Figueroa is preparing adjustments to Gross Income and exploitation fees that could generate additional resources estimated at several million dollars annually for the provincial coffers.
Increase in Gross Income for betting operators in Argentina
The main modification contemplates the increase in the Tax on Gross Income for betting companies based in Neuquén. The current rate of 2% would be raised to 3%, representing a 50% increase in this specific tax burden.
This equalization seeks to eliminate the differentiated treatment that historically benefited the gaming sector compared to other commercial sectors that already pay 3% or more in the Argentine province. Tax analysts estimate that the adjustment could generate additional income close to 5 million dollars in the first year of implementation, considering the current volume of operations in Neuquén.
The measure will affect both operators of physical venues and digital platforms for sports betting and online gambling that operate under provincial licenses.
New scheme of differentiated fees by type of game
In addition to the adjustment in Gross Income, the government project establishes significant changes in the exploitation fee that companies pay for the right to operate gaming activities in Neuquén.
The current scheme establishes a uniform fee of 15% on revenue for all modalities. The reform proposes to raise this percentage to 17% exclusively for physical gaming venues, while maintaining 15% for online platforms.
This differentiation responds to criteria of operational profitability, considering that physical venues generally have higher margins than digital platforms, according to technical documents from the provincial Ministry of Finance.
The increase of two percentage points in the physical segment represents a 13.3% increase in the fee burden for these operators.
Reaction from the business sector and implementation timeline
Business associations in the sector have expressed concern about the increase in the tax burden, arguing that Argentina already has one of the highest tax schemes in the region for gaming activities.
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Representatives of the Neuquén Gaming Companies Association have requested meetings with provincial officials to discuss implementation deadlines and possible transition mechanisms to avoid abrupt impacts on business operations.
The project requires approval from the provincial Legislature, where the ruling party has a majority but faces resistance from opposition blocs who question whether the increased revenue justifies possible closures of establishments or reduction of employment in the sector.
If approved in the ordinary sessions of March 2026, the modifications would take effect from May of the same year, allowing a two-month adaptation period for operators.
Expected impact on revenue and oversight challenges
Projections from the Neuquén Ministry of Finance estimate that the tax reform will increase revenue from the betting sector by approximately 35% annually, raising the contribution of the sector from the current 23 million dollars annually to about 31 million.
However, specialists warn that the revenue success will critically depend on the provincial oversight capacity, particularly over online platforms where control is more complex.
Neuquén has a Directorate of Games and Casinos with limited staff to supervise a universe of more than 40 authorized operators between physical and digital modalities.
The provincial government has announced investments in monitoring technology and the hiring of specialized personnel in digital oversight as a necessary complement to the tax reform, with an estimated budget of 2 million dollars for 2026.
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