Regulatory tango in Buenos Aires
| By iGB Editorial Team
Political upheaval has thrown the future of Buenos Aires’ planned roll-out of online betting and gaming into doubt. Jake Pollard looks to provide clarity on an increasingly murky situation.
Political upheaval has thrown the future of Buenos Aires’ planned roll-out of online betting and gaming into doubt. Jake Pollard looks to provide clarity on an increasingly murky situation.
The sports betting regulatory saga that is unfolding in Argentina’s Buenos Aires is likely to carry on for some time and more twists are to be expected in the coming months.
Hopes of obtaining a licence from the provincial authority, Instituto Provincial de Lotería y Casinos (IPLyC), were high among the 20 to 25 international operators which applied in partnership with local companies. That total was later reduced to a total of 17 applicants, but their optimism has dampened considerably following the country’s general elections last December.
Buenos Aires governor, Maria Eugenia Vidal, who signed the official decree to regulate online gaming and betting in the province in February 2019 and was seen as one of the main movers behind the new regulations, lost her governorship to Axel Kicillof of the allied Justicialist and Frente de Todos parties in the primary elections that ran in August.
That win presaged the presidential victory for the Justicialist/Frente coalition led up by Alberto Fernández. As a result, no one is quite sure how the regulatory process will now evolve.
Some observers have become cynical about the whole project. One contact pointed out that the Buenos Aires authorities are in desperate need of funds and were more than happy to cash in on the US$120,000 up front fees required of the preliminary process. This was then compounded when news came out that the provincial authority Instituto Provincial de Lotería y Casinos (IPLyC) had decided to hand out licences to just seven of the 17 companies that had applied for a permit.
The lucky seven
Shortly after the general elections, Spanish language website gamingandmedianews.com published an article claiming the following seven joint venture partnerships had been approved for a provincial licence:
- ArgenBingo – William Hill
- Bingo Pilar – Paddy Power Betfair
- Pasteko – Hillside (Bet365)
- Hotel Casino Tandil – Playtech
- Boldt – 888
- Atlántica de Juegos – The Stars Group
- BinBaires – Intralot
- According to local media, IPLyC has so far granted seven licences, but sources believe this is likely to change.
- The Buenos Aires Provincial Legislature gave its final approval to the 2019 Budget at the end of 2018, thereby authorising interactive gambling within the province.
- The law imposed a tax rate of 15% of gross win on interactive casino and sports betting, and an additional 2% withholding tax on players’ gaming machine and bingo winnings.
- Legislators of the Autonomous City of Buenos Aires passed legislation authorising interactive gambling and sports betting within the province in December 2018.
- The bill imposed an incremental tax rate at 6% gross win, increasing up to a maximum of 25% gross win. The state lottery, Loteria de la Ciudad (Lotba), was granted authority to call for tender processes and award licenses to commercial operators.
- The governments of both the Buenos Aires Province and City announced they would collaborate to effectively regulate the interactive gambling market between their respective jurisdictions.