International edition
January 19, 2019

The Legislature approved the bill on Thursday

City of Buenos Aires legalizes online gaming and sports betting

City of Buenos Aires legalizes online gaming and sports betting
The number of licenses will be determined according to the interested parties who apply. It is estimated that the main players in the market in other countries could participate, as well as local firms.
Argentina | 12/14/2018

The initiative regulates online gaming and distinguishes it from "chance or skill, sports betting, virtual gambling and betting non-sporting events via machines, instruments or supports, of any type or technology." Authorized bettors will be required to register the credit card on which payments and tax fees will be applied to monitor and avoid underage and compulsive gambling.

T

he Buenos Aires Legislature authorized online gambling in the district, and qualified the bets to the results of the soccer matches, although it prohibited the participation of directors and players of the clubs participating in the event. The local government expects to raise 500 million pesos (13,5 million dollars)

The law obtained 34 positive votes from the ruling party and 22 negative votes from the opposing blocs that raised their concern about the damages that the activity may have, such as compulsive gambling.

The initiative regulates "online games" and distinguishes them from "chance or skill, sports betting, virtual gambling and betting non-sporting events made by using machines, instruments or supports, of any type or technology," says Télam.The voting process was drawn to a close with the signing of an agreement between Horacio Rodríguez Larreta -Head of the City management- and María Eugenia Vidal -Head of Buenos Aires province- committing to the joint coordination of actions in regards to online gaming between both jurisdictions.

According to Executive officials, about a thousand illegal Internet sites selling games of chance were detected, and regulations were hurried so that "the State could step in with timely regulations that help protect the rights of underage citizens, consumers and users, as well as preventing money laundering."

From now on, Lotería de la Ciudad will be able to call a tender and grant licences for private companies to exploit online gaming. The number of licenses will be determined according to the interested parties who apply. It is estimated that the main players in the market in other countries could participate, as well as local firms. The tax burden would include 6% of Gross Income, and then another tax until it reaches a maximum of 25% of the total billing. The local government expects to raise 500 million pesos (about 13.5 million dollars).

The regulation also settles the conditions and modalities to be regulated so that users and consumers of online games are protected by a system that allows them to self-limit their expenses.

According to government sources quoted by the newspaper El Cronista, authorized bettors will be required to register the credit card on which payments and tax fees will be applied. In this way, they seek to monitor and avoid underage and compulsive gambling, as well as the involvement of people close to officials or participating in sports events.

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