Online gaming legislation: A challenge for Argentina

The fact that gaming issues are not Federal diversity issues translates into changing and disjointed regulatory frameworks, which can either stop the growth of the industry or fail to generate profits for the State. Therefore, we compile the challenges and obstacles that the online casino industry in Argentina faces, while waiting for a centralization of legislative frameworks.

Absence of a National Gaming Law

Although in March 2019 online gambling was authorized in Argentina, first granting the management and power of granting licenses to the Provincial Institute of Lottery and Casinos of the Province of Buenos Aires, awarding a decentralized power when it comes to supervising the activities online game. The truth is that this decentralization of the regulatory frameworks and the approach given to the provincial governments propose a necessary investment of time and resources for the rest of the local governments.

In February 2020, the Lottery of the City of Buenos Aires S.E. (LOTBA) published the call for the granting of “Online Gaming Agency” permits for the purpose of marketing certain games through internet platforms and/or applications for mobile devices. At the end of the pandemic, this organization already reported that more than 40 platforms had already registered in this domain and Buenos Aires had the largest player count nationwide, since then cementing the growth of licensed online casinos in Argentina. What this initiative did wrong was the lack of inclusion of other provinces that seek to profit from this industry in little formalized or regularized ways.

.bet.ar domain, just a marketing strategy

The centralization and homogenization of online gambling is one that concerns all legal operators in the country. It is an achievable goal, whose ideation can take the example of other proposals initially thought of as a way to reduce popular mistrust in online casinos. It is about the creation of the specific domain for the safe game, labeled “.bet.ar”. Authorized by the National Internet Domain Registry Office, domain registration is one of the main guarantees of legality and protection against fraud.

State indecision and remedial frameworks

Benefit local governments and take advantage of legal loopholes caused by an absence of national law. Many of these profits are pocketed by large companies that, to avoid paying high taxes, the provinces put in draws that are not official lotteries, focus their area of ​​action within provinces with which they have agreements and leave aside those that put tougher legislation.

This premise is the originator of various business operating models, which include the exploitation of casinos and lotteries by the State, up to the total privatization of gambling activity, which also happens at the provincial level and is not a widespread practice. The most widespread scheme is that of concessions to private parties, in exchange for a fee and/or a series of taxes; which means that there is an understanding at the local level about the importance and benefits of government support in this industry. What is needed, in many cases, is the will of the State and local governments to reach an agreement that benefits the vast majority.