888 and Betsson opt for a license in Buenos Aires
Having finished the deadline for the presentation of the candidacies that opt for the seven licenses granted by the province of Buenos Aires to operate in the regulated gaming and betting market, it is only necessary to know the operators who will be able to have a definitive license. The latest to join the list are two companies that we know well in New Zealand: Betsson and 888 Holdings, in addition to the Italian Sisal Entertainment.
Foreign operators are looking to gain a foothold in the Buenos Aires market. ©PixaBay/Capri23auto
The government of political scientist María Eugenia Vidal had already opened the doors for the regulation of online betting in the province of Buenos Aires with the 2019 tax bill and the creation of the Online Gambling License Registry. We now have a shortlist of up to 15 candidates applying for one of the seven licenses granted by the province of Buenos Aires . But they are not the only ones. Industry giants such as Bwin or Bet365, who have already set foot in Argentina, are on the prowl. Spanish operators such as Codere have also shown their interest. The legislation proposed by Governor Vidal could be opening the door to a millionaire business.
The regulation proposal presented by the government of the province of Buenos Aires has not been without criticism, as it would be putting the fundraising goal first without considering the negative effects of online gambling and betting. This has been the main concern of the CEA, the Argentine Episcopal Confederation, and the National Commission for Pastoral Care of Addictions and Drug Dependence who would have liked a public debate on the social repercussions of the new law. The problem is that today through the mobile phone you let into the casino at home, protested the bishops, who warn of the danger of offering the "timba as a possible solution" for life.
Regulating the sector and taxing online gambling
The Tax Law of 2019 taxes online gambling. ©PixaBay/ExplorersInternational
The proposal of the Vidal government regulates in its articles 142 and 143 gambling, including "casino games - table and electronic automated gambling machines ”" as well as sports betting and lotteries. There “where amounts of money are risked on future and uncertain results, regardless of whether the degree of skill of the players predominates in them or whether it is exclusively luck or chance”. One of the objectives of the 2019 Tax Law is to create two new taxes for the sector: one for online gambling that, since it is not regulated, was not taxed, and the other for the prize of bets on slots. The province expects a collection of 5 million pesos .
Despite the reservations expressed by Argentine society and the political opposition, the truth is that the industry has expressed its satisfaction and great expectations have been generated for the business. According to the consultancy iGaming Latam Consulting, although the online gaming industry is still unregulated in the vast majority of Latin American countries, it is estimated that the turnover amounts to about USD 1,500 million.
There is a great expectation, companies hope that the regulation will be extended nationally to be able to offer their products and services not only in the province of Buenos Aires, but throughout the Argentine territory – Juan Ignacio Juanena , founder, iGaming Latam Consulting
Meanwhile, the new candidates 888 and Betsson have already established collaborations with local partners that will facilitate their entry into the Argentine market. The law stipulates that no foreign operator will be allowed to participate if he is not associated with a local operator . Betsson has announced Casino de Victoria as its business partner, a physical casino in the province of Entre Ríos. For its part, 888 Holdings will operate through Boldt, a company dedicated to the lottery business very active in Buenos Aires. But they are not the only ones. Betway has joined Bingo King while Codere Latam has confirmed its collaboration with the bingo room operator Iberargen.
The 2019 Tax Law will result in the release of the gambling market and sports betting, first in the province of Buenos Aires, which may serve to pave the way for similar legislation at the national level. One more step in the neoliberal economic policies that the Mauricio Macri executive has been implementing in recent years.
