According to a comprehensive report published by the national financial daily El Cronista, the online betting market could be enabled in the city and province of Buenos Aires as of December 9. This is what both jurisdictions previously agreed upon, after the legislative elections.
Online betting is already operational in 12 other provinces of Argentina: Mendoza, Santa Fe, Corrientes, Chaco, Misiones, San Luis, Tucumán, Entre Ríos, La Pampa, Neuquén, Río Negro and Santa Cruz. Each of them regulates it independently, unlike other countries in the region, where this type of game is managed at the federal level.
Industry analysts assure that the entry of Buenos Aires to the list of operational places will promote this betting alternative: “Online betting was the main topic of many discussions in recent years, including various regulations by provincial lotteries. The authorization of the province and city of Buenos Aires seems to be the result that the operators were waiting for to finally make their debut", according to a source from El Cronista, non-individualized.
Several world-renowned companies put their interest in the Argentine market, and some have already started their landing. They are joined by players of national origin. In the province, seven companies obtained licenses for 15 years, while in the city there is no participation limit. Each operator includes a local partner and its foreign counterpart.
Of the seven companies authorized to operate in the province of Buenos Aires, four have already signed the agreements.
One of them is BetWarrior, an Argentine brand with activities since 2019 in eleven countries in the region, belonging to the Palermo Race Track and the Buenos Aires Casino. Before the end of the year, this company will launch a mobile application for the local public. Its national partner is Binaires and the international one is the Greek group Intralot. The Danish company Shape, which is in charge of the Danish Lottery, is also part.
Another case is that of Boldt, which operates in Santa Fe and has already agreed with prestigious clubs such as Estudiantes de La Plata and Vélez Sarsfield, to place the logo of their brand, Bplay, on their shirts for the next twelve months. Its foreign partner is 888, a company that is part of 888 Holdings PLC that has been listed on the London Stock Exchange for more than 20 years.
As reported to the National Securities Commission (CNV for its initials in Spanish), after receiving authorization to operate, Boldt began to work on "preparing all that's necessary" for the launch of the platform. "The award of this permit and the start of activities marks an important milestone in our consolidation as a leader in the field," the company said in a press release.
The tandem arrangement between William Hill and ArgentBingo also obtained a license, and its local partner is the operators of Bingo Moreno. The fourth confirmed is Bet365, with Bingo Berazategui as a local partner.
The three that have not yet signed the agreements are Playtech, which will work in association with the Casino de Tandil; Pokerstars, linked to Chivilcoy's Bingo, and Betsson with Casino Victoria.
Meanwhile, the Spanish Codere received the green light to operate in the city of Buenos Aires and reached an agreement with the Club Atlético River Plate, brand new champion of the local tournament, to appear on the sleeves of its shirt. And BetWarrior has already joined this jurisdiction as Bplay, which is currently processing the permits to follow the same path.
In the bidding process, the companies had to pay ARS$ 5.5 million (about US$ 55,000 at the current exchange rate), and they will have to disburse ARS$ 65 million as a one-time fixed charge (about US$ 646,000), in addition to the royalties for operating (10%) and Gross Income (15%) that must be paid once they start operating, as well as the rest of the applicable taxes, such as Income Tax.
For the industry to take off, it will be essential to clear the macro uncertainty that today keeps the national economy in suspense. Despite the potential, the obstacles to transferring funds could represent an obstacle, although analysts are confident that the sector "will do well."
The truth is that the political decision finally arrives in a scenario in which the State coffers will increase, in both the province and in the city of Buenos Aires, at a fundamental moment for both administrations. And it will contribute to the national coffers, through the collection of Gross Income. At present, only the official confirmation remains so that before 2022, the strongest jurisdiction of Argentina receives the green light for the initiative, and finally, online betting becomes a reality.