Enabling online gambling advances in Buenos Aires

The provincial Lottery sent the corresponding "framework agreements" to the winning companies in recent weeks, which once signed will give rise to the start of the recreational activity, starting 90 days after they are signed.

It is a phenomenal income tool, once it is regulated, for the Government of Buenos Aires. Between the payments of the royalties to operate (10%) and the Gross Income tax (15%) that the licensees must pay once they operate, an annual income for the Province of between $ 10,000 and $ 12,000 million is estimated, according to industry sources.

On December 31, Kicillof signed a decree in which it awarded licenses to seven companies to operate. In the tender approved at the time by the Vidal government, it was expected that the companies would present themselves in groups, with an international firm closer to being certified by a local one. The international had to have 75% of the capital and the local, the remaining 25%.

In the last weeks, the "framework" or "model" agreements were circulated in which the obligations and rights between the parties are established and a period of 90 days is foreseen to start operating.

Industry sources consider that it is a "necessary laundering of a business that moves millions of pesos illegally and does not pay a cent of taxes. And they emphasize that it will be vital for the provincial coffers. Hence, it was Vidal who promoted him in the Buenos Aires Legislature during his tenure and that in the last year Kicillof has accelerated in order to raise key funds in times of pandemic.

In parallel, several of the companies that were not awarded, together with local NGOs, questioned the lack of access to public information related to the tender. The companies complained by administrative means, but the NGO AMPA (Association of Criminal Women) with the support of Forensic Accountants, promoted legal actions. The judicial process initiated by the NGOs before the Administrative Litigation Chamber of the City of La Plata is pending resolution.