Argentina proposes betting tax to fund local sports clubs

Argentine National Deputy Natalia Zaracho has introduced a legislative proposal known as the ‘Ley de Clubes de Barrio’ (Neighborhood Clubs Law). The bill aims to establish a ‘Club Card’ program designed to provide monthly financial support to local neighborhood sports and social clubs to assist with facility maintenance, equipment, and general operations.

The program would be funded through a tiered tax system on online sports betting deposits. Under the proposal, a base tax of 10% would be applied to the net value of user deposits. The bill includes incentives for local investment, offering a reduced rate of 5% for companies that invest directly in Argentina. Conversely, foreign entities would face a 20% rate, while operators based in tax havens would be subject to the highest rate of 30%.

The distribution of funds would be managed by a national sports body, which would determine allocation based on factors such as a club’s size, location, and community role. The bill must pass through the Argentine Congress to become law.