The state gambling regulator (Lottery of the City of Buenos Aires) Loteria de la Ciudad (LOTBA) in Buenos Aires, Argentina, officially unveiled its online gambling and sports betting regulations on Friday. LOTBA expects the selection process to be completed in the fourth quarter of 2020 and the first gaming activities to begin.
In contrast to the neighboring state of Brazil, which is expected to only issue 30 gaming licenses, there should be no restrictions in Buenos Aires regarding the number of operators. Companies that meet the requirements should receive permission to offer gambling and sports betting.
For the time being, the licenses should only approve gambling offers that are restricted to the autonomous province of Buenos Aires. If the initiative is successful, gambling regulation could take place nationwide. Last spring, the Instituto Provincial de Lotería y Casinos (IPLyC) [page in Spanish], which regulates gambling across Argentina, announced plans to grant seven online gambling licenses.
However, these plans were put on hold after changes in the political scene by the parliamentary elections last August. However, according to the media, the plan now published by LOTBA could prevail in Buenos Aires.
Criteria for issuing gambling licenses
Companies wishing to offer online casino games, bingo, poker, and sports betting online must pay a $ 30,000 fee and a $ 2 million guarantee at the start of the licensing process. The annual license fee is expected to be $ 100,000 plus 10% tax on net income. Proof must also be provided that the company has been successfully operating in the industry for at least two years.
In addition, the interested operators must present their advertising systems and explain which measures would be taken to prevent money laundering and terrorist financing. Providers who receive a license should be allowed to operate their platforms on the market for five years. After expiry, the option to extend for another five years should exist.
Although the planned legalization of online gambling is initially limited to Buenos Aires, reports in Argentina indicate that regulation of online gambling and sports betting could also be imminent in other parts of the country.
Lottery of the City of Buenos Aires SE
Missions and functions
Lottery of the City of Buenos Aires is a State Society that is responsible for the permission, coordination, gathering, admin, and control of gambling, skills and mutual bets, and related activities in the town.
With the aim of allocating funds from gambling to different social assistance programs and developing a mature, efficient, transparent, and entertainment service industry, it primarily promotes the exercise of responsible gambling.
Summary of milestones
On June 3, 2016, through Decree No. 743/16, the President of the Nation, Mauricio Macri, confirms the start of the transfer of competition in matters of exploitation, control, and control of gambling to the Autonomous Buenos Aires city in said territory. Likewise, a Liaison Commission is established between the National Lottery SE and the Betting Institute of the Buenos Aires city, in order to order and define the procedure for assuming competencies in 120 business days, and define the legal and operational instruments more appropriate, and dictate administrative and legal acts.
On November 24, 2016, the agreement was signed between the National Lottery State Society and the Betting Institute of the Autonomous Buenos Aires city that initiated the assumption of competencies and attributions regarding gambling, skill, and mutual bets, and related activities in the area of The Autonomous Buenos Aires city.
The purpose of the same was to evaluate the most effective way for the City to definitively exercise competition in matters of gambling in its jurisdiction. In this regard, it was established that the City Government would determine the body that exercises the powers that LNSE performed in relation to the regulation, authorization, organization, exploitation, collection, administration, and control of gambling and related activities that are developed in Your jurisdiction
On December 15, 2016, the Legislature of the City of Buenos Aires sanctioned the creation of the City Lottery, in pursuit of Buenos Aires autonomy, through a State Society, through Law No. 5785/16, in the scope of the Ministry of Finance of the Government of the City of Buenos Aires.
In this way, the City Lottery becomes the authority for the application of Law 538/00 on Gambling, in order to comply with Article 50 of the City Constitution, which states: “The City regulates, administers and exploits gambling, skills, and mutual bets, privatization or concession not being admitted except in what refers to distribution and sale agencies. Its production is destined for assistance and social development ”.