Uruguay: Government proposal to regulate online casinos considered incomplete

Article 224 of Law 19,535, of 2017, declared that “the provision of services through the Internet, technological platforms, computer applications or similar referring to games of chance or online gambling, is reached by the principle of illegality provided by the Article 1 of Law No. 1,595, of December 16, 1882 ”.

Without prejudice, exclusively to the power conferred on the Executive Power by Article 19 of Law 17,453, of 2002, "to organize competitions for forecasts of international sports results, as well as the specific authorizations granted by the competent authority to date." Article 224 concludes: "It is interpreted that casino and room games, such as poker, roulette, slots, among others created or to be created, are absolutely prohibited in their remote mode (online, virtual or similar)".

In other words, as of today, these activities by private parties are prohibited. The Executive's project, as explained at the beginning of the text, empowers, through the General Directorate of Casinos, to directly exploit online gambling, “as well as to authorize this type of gambling to those who previously had obtained the concession or permit. to exploit it in person".

In the explanatory memorandum, signed by President Luis Lacalle Pou, it is indicated that "given the progress and significance that Internet games already have in the present and will surely achieve in the future, it corresponds to empower the General Directorate Executing Unit from Casinos to exploit the games that it traditionally develops through technological platforms, with the understanding [of] that a large part of the recreational activity will be exercised –if not already– in the future through them ”.

“Likewise, it is noteworthy that it has been decided to introduce the power of the Executive Power to authorize online or remote gambling to those casino game concessionaires or others who already have prior authorization to operate the game in person, without prejudice of those that are authorized in the future. This last aspect turns out to be an unavoidable reality, which has been demanded by the private sector that has prior authorization for the exploitation of different face-to-face games, "says the Executive on the grounds of the project.

Therefore, the initiative has a single article, in which it establishes that, without prejudice to the provisions of 244 of the aforementioned law, “the Executive Power is empowered through the General Directorate of Casinos of the Ministry of Economy and Finance to to provide the activity of casino games such as poker, roulette, slots, among others, created or to be created, under the 'online' mode, through the internet, technological platforms, computer applications or similar ”.

It is established that the Executive will regulate the modality, determining, among other aspects, “the requirements that the technical system provider must meet, the gaming modalities to be authorized, the responsible gaming policies, the control and oversight rules and procedures, and the distribution of profits ”.
"Very incomplete"

Within the coalition the initiative has not yet been discussed, but in CA they are already thinking of presenting an alternative bill on the subject, and the person in charge of doing so will be deputy Sebastián Cal. In dialogue with the newspaper, he said that the project of the Executive is "very incomplete".

In his opinion, it is a good opportunity to present an initiative related to gambling that also addresses other issues, such as "slot machines, which are in areas of critical context and do not have any type of control or regulation." He also mentioned "the payment of a fee" by those who have online gaming licenses, and the generation of an ID (digital identification) so that each person "cannot play more than a certain percentage of their monthly income."

Cal added that online gambling is currently not enabled "for some", since for La Banca de Loterías y Quinielas "it is not prohibited." “There is a great confusion that most of the Orientals have, and I would say that even many political actors –to my surprise–, who think that the State has some participation in La Banca. But the State does not receive from La Banca more than the same taxes that the grocer or carpenter pays ”, he stressed.

Cal added that this is "unbelievable," therefore, he noted, "if we're going to talk about gambling online, it's an excellent opportunity to sink our teeth into a lot of gambling-related things." “In La Banca you have to review a little more. That only pay taxes is an issue to review, "he concluded.