Buenos Aires increases online gambling licence competition with new measures
Local land-based casinos allowed to participate in city-wide online gambling as legislature approves new standards
Legislators in Buenos Aires have approved amendments to allow the city’s land-based casino operators to submit bids for online gambling licences.
The city’s first online gambling framework for licensing operators was initially approved in February, but further debates were curtailed by Covid-19.
In May, a group of licensed land-based operators in Buenos Aires filed a petition with the legislature seeking to suspend its application process on the grounds that it unfairly discriminated against local operators.
The original framework excluded land-based gaming operators from the licensing process to avoid what legislators called “monopolistic practices”, while at the same time also drawing in international operators.
The amendment to include land-based firms in the licensing process passed overwhelmingly by a margin of 27 votes to five.
The state also approved a so-called “clean record clause”, under which individuals convicted of serious crimes, both foreign and domestic, are barred from managing a Buenos Aires-licensed online gambling operator.
Under the current framework, online gambling licences and regulation of the market will be carried out by the Buenos Aires City Lottery (LOTBA), in concert with the Buenos Aires Ministry of Finance, which will retain responsibility for collecting fees and taxes.
The legislature also passed several measures aimed at regulating responsible gambling-led policies, including mandatory gambling-related harm messaging, responsible gambling advertising and the potential creation of a citywide self-exclusion registry.
The amendments have been passed to Buenos Aires city governor Horacio Rodríguez Larreta for final approval, at which time the city can open the licensing process.
City of Buenos Aires online gambling licences will be valid for a period of five years.
Operators will be taxed on a percentage of their gross gambling revenue at varying rates dependent on specific verticals, at 10-20%, with a further 6% net income tax being applied to licensees.
The regulation of online gambling is currently underway at a wider provincial level, with 10 operators including bet365, William Hill and Flutter Entertainment competing for just seven province licences.