Regulated Online Gambling in Buenos Aires is Imminent

South America has always been an area of interest for online casino and sports betting operators. While some brands have managed to run successful businesses in the region its lack of regulation has always made advertising and money transfers difficult.

However, with its latest round of updates surrounding online gambling, it appears as though the Argentine city of Buenos Aires may become one of the friendliest iGaming cities in the world.

 Is Online Gambling Legal in Argentina?

Simply put no it is not. For now.

South American law prohibits online gambling however Law No. 27.346, section 301 does make allowance for “competent authorities” to regulate gambling and gaming-specific territories.

The Government of the City of Buenos Aires has been hard at work since 2019 developing a framework that would allow international operators to apply for online gambling licenses.

These licenses would allow legal online casino games and sports betting to be offered to punters in Buenos Aires only, but with all the benefits of being able to advertise on local media and set up business accounts that would allow them to move funds out of the country.

While the license would be limited to Buenos Aires a 2020 census reports that the city is home to more than 15 million residents making it a viable standalone business, especially given the governments proposed fee structure.

 Regulated Gambling Proposal

In response to the financial impact of the pandemic on land-based casinos in Buenos Aires, the online gambling proposal has been amended to now allow local license owners to also apply for an online license.

While this has initially been excluded to avoid potential monopolies forming the health of the local economy has dictated its inclusion which has come as a boon to local gambling companies.

The Buenos Aires licensing proposal includes three key items:

1. The ‘Clean Record’ clause – No applicants may have a criminal record or be implicated in current or upcoming legal cases involving “human trafficking, terrorism or drug, human or gun trafficking, or laundering of assets or for crimes included in the Inter-American Convention against Corruption”.
2. Existing Operators only – All applicants must have a minimum of two years active experience and show a current net word exceeding $25 million (US).
3. Low Fees – Licenses in Buenos Aires will be free from fixed fees but consist of a 6% tax on net income plus a game-specific gross gaming revenue fee of between 10%-20%.

All approved online gambling operations will be managed by the Buenos Aires City Lottery (LOTBA). LOBTA will facilitate all operational reviews, process all taxes and control blacklisting operators who fail to meet the required compliance requirements.