Online Gambling in Buenos Aires is About to get Regulated

The online gambling landscape in Buenos Aires, Argentina, has undergone a significant transformation, moving from an unregulated environment to a fully licensed and operational market. This pivotal shift was spearheaded by the Instituto Provincial de Lotería y Casinos (IPLyC), the state-owned gambling regulator for the province. The journey involved legislative action, a rigorous selection process for operators, and the eventual launch of a regulated iGaming and digital betting sector.

This regulatory framework has not only brought structure to the burgeoning online gambling industry but also opened doors for major international and local operators to offer their services legally within Buenos Aires, one of Argentina's most populous and economically significant regions.

The Legislative Foundation: Decree 181

The groundwork for online gambling regulation in Buenos Aires was laid in 2018 with the approval of Decree 181. This landmark legislation provided the legal basis for the legalization of digital gaming, empowering enterprises to seek official licenses from IPLyC and operate within a clearly defined regulatory environment.

While the initiative gained considerable momentum throughout 2019, its progress faced temporary setbacks due to political shifts and economic uncertainties. However, the commitment to establishing a regulated market remained strong, and efforts to implement the decree resumed with renewed vigor in late 2020. This renewed push ultimately led to significant advancements, culminating in IPLyC's announcement of the successful applicants who would be granted permission to operate once their licenses were formally approved.

Decree 181 specifically authorized IPLyC to issue a maximum of seven online gambling licenses. A key component of this regulatory model is the financial contribution from licensees, who are required to remit a 5% return on their sales as tax revenue, contributing to provincial funds.

Leading Operators Secure Licenses in Buenos Aires

The licensing process attracted considerable interest from both domestic and international gambling entities. IPLyC reported receiving 14 applications from various companies vying for a coveted spot in the newly regulated market. After a thorough evaluation, seven consortia were ultimately selected, demonstrating a blend of global expertise and local partnership.

The approved groups, which have since become active players in the Buenos Aires online gambling market, include:

• William Hill in partnership with ArgenBingo
• Bet365 alongside Pasteko SA
• Playtech collaborating with Hotel Casino Tandil
• 888 Holdings partnered with Boldt SA
• Flutter Entertainment (owner of brands like PokerStars) with Atlántica de Juegos
• Intralot in conjunction with Binbaires SA
• Betsson working with Casino de Victoria

Notably, several other prominent applicants, such as Luckia, BetChris, and LatAm, did not secure licenses during this initial phase.

Market Launch and Operational Framework

With the regulatory framework firmly in place and the licenses awarded, the online gaming market in Buenos Aires officially launched in December 2021. This marked a significant milestone, allowing residents of the province to access legal and regulated online casino games and sports betting options.

To participate in the region's gambling activities, each approved licensee was required to pay an initial fee of approximately $773,000 (USD). Despite earlier rumors and concerns regarding potential political resistance, particularly from Governor Axel Kicillof, the market successfully moved forward. The initial hesitations, reportedly centered on aspects related to welfare funds, were ultimately overcome, allowing the regulatory process to reach its intended conclusion.

The operational framework ensures that licensed operators adhere to strict standards of player protection, fair play, and responsible gambling, all overseen by IPLyC. This structured approach aims to provide a secure and transparent environment for online bettors and casino enthusiasts in Buenos Aires.

Impact and Future Outlook

The regulation of online gambling in Buenos Aires represents a significant step forward for Argentina's iGaming sector. It provides a legal and secure environment for players, generates substantial tax revenue for the province, and attracts investment from leading global gambling companies. This move positions Buenos Aires as a key player in the Latin American online gambling market, fostering growth and innovation while prioritizing consumer safety and responsible gaming practices.

As the market matures, it is expected to continue evolving, potentially influencing other Argentine provinces to follow suit in establishing their own regulated online gambling frameworks. This ongoing development underscores the dynamic nature of the global iGaming industry and Argentina's increasing engagement within it.