(AsiaGameHub) – By: Adrian Kingsley
The question of whether recent tax hikes in LatAm’s igaming industry are strengthening the regulated market or pushing players to the grey market is a pressing one. Five industry leaders shared their views on this issue.
Carlos Fonseca Sarmiento of Gaming LatAm argues that excessive tax increases strengthen the black market. He says the state’s taxing power is limited by constitutional principles. Lawmakers often create absurd tax schemes, making it hard for regulated operators to compete. Miguel Ángel Ochoa Sánchez of AIEJA adds that over – taxing leads to lower revenue and unfair competition for legal companies.
Cecilia Valdés of the ACCJ believes it’s too early to tell the impact of tax hikes. She notes that Latin American markets are still finding equilibrium. She emphasizes the importance of stability in tax rules.
Tatiana María Vásquez, a gambling regulation lawyer, says recent tax increases widen the gap with the illegal market. She advocates for proper technical design of taxes. Ramiro Atucha of Atucha Advisory points out that higher taxes and controls subsidize the black market, as seen in Brazil where the legal market share dropped.
In the end, finding the right fiscal balance in LatAm’s gambling industry is crucial. It requires a tax rate that is moderate enough to keep operators in the regulated market and ensure sustainable public revenue.
Author bio: Adrian Kingsley, an internationally renowned scholar who has long studied public administration and social policy.