First signs

Argentina closed the 2024 trade balance with a surplus of almost US$19 billion. Imports saw a 17.5% reduction compared to the previous year, with very disparate results among the sectors that comprise it. In 2024, the Gaming Industry, and particularly the import of Slots, saw a 74.45% drop compared to the previous year. This decline was due to the fact that several importers chose to delay their operations while waiting for the expiration of the PAIS Tax in December 2024, in order to avoid a 30% surcharge on their imports.

On the contrary, 2025 is already shaping up to be a resoundingly different year for the land-based market in the context of Foreign Trade. January imports have already surpassed the months of January, February, March, April and May 2024 combined. In a context where last year many foreign companies opted for a cautious stance while observing the direction of the new government; 2025 begins with a more defined panorama, where the policies already established generate a more predictable and favorable climate for investment in Argentina. In this context, it is important to highlight the advantages that imports already present in Gaming and the benefits that could be consolidated in the rest of the year.

A context of deregulation

First, there was a marked tendency towards the de-bureaucratization and facilitation of customs procedures that historically resulted in cumbersome and sometimes indecipherable processes for people outside the sector. Specifically, the mandatory red channel for merchandise covered by antidumping measures, the R.U.M.P or standard values, was eliminated. At the same time, several technical and export certifications were repealed and “positive silence” was implemented for the tacit approval of Customs in some procedures. Perhaps the most symbolic change was the replacement of AFIP by ARCA (Customs Collection and Control Agency), with significant salary and staff cuts within the new agency. More recently, last week the Import Declaration Statistical System was repealed after considering that it had already fulfilled the objectives of normalizing the import system. Also, the new Technical Regulation for Electrical Certification came into force, where recognized international certificates, certified adapters, and products with 50V or less were accepted, among other measures. The latter directly benefits industries that depend on low voltage electrical equipment, such as gaming.

At the same time, there were major changes in the tax area for imports in general. Products in the basic basket saw a suspension of Import Duty rates, as well as the suspension of Profits and VAT for MSMEs for the import of certain chemicals, plastics, and foods. Another major change was the authorization of the BCRA to allow the payment at sight and/or deferred and/or in advance of capital goods, with the importer's own dollars deposited in local bank accounts. Finally, the expiration of the PAIS Tax in December 2024 ratified the confidence of the most optimistic sectors, since the government had promised not to renew or replace it with another tax. The latter is in line with what appears to be a maxim of the new government's economic direction: generating predictability and therefore confidence in foreign investment.

In any case, these measures did not initially seem to directly or indirectly cover the gaming industry. On the contrary, in October 2024, a D.I.E of 35% (the maximum allowed by the WTO) was ratified for luxury goods such as slot machines. Two months later, the new perception regime established by the ARCA ratified the 30% rate on the purchase of foreign currency destined to pay for imports of certain luxury goods such as Slots.

In this context, it could be argued that Luxury Goods seemed to be the last priority in the face of the new government's deregulation program. But, on the contrary, there were two major axes that directly benefited the Gaming sector: the flexibility of the access deadlines to the Foreign Exchange Market; and the elimination of the PAIS Tax. Initially, the deadlines for the payment of freight and insurance for these imports were reduced. The payment terms for these goods after their customs entry were then progressively reduced from 180 to 120, 90, 60 and finally 30 days. For its part, the expiration of the PAIS Tax in December 2024 represented additional relief for the sector by eliminating a tax burden that, since 2022, covered the import of slot machines.

2025

With these changes in mind, what other measures are expected for the near future?:

• Elimination of the exchange rate restriction, with a deadline of 12/31/2025.

• Free competition of currencies.

• Elimination of non-tariff barriers.

• Reduction of the Common External Tariff.

• Free Trade Agreements with the U.S. and progress in the Mercosur-EU agreement.

As mentioned above, the first signs are positive. Although it is too early to talk about the reactivation of the industry towards levels prior to 2022; in January alone, imports of slot machines already represented 20% of the total for last year. This panorama suggests an optimistic horizon for the sector, which begins to experience the benefits of the measures implemented in 2024. With more solid and stable foundations, the industry is preparing for what many hope will be a year of consolidation and growth of operations in the country. 

*Tomás Galarza has a degree in Political Science and is a Foreign Trade Analyst, working at ASAP Comercio Exterior, a company with more than 35 years of experience in the market, specialized in offering comprehensive logistics solutions for foreign trade.