Authorities in Buenos Aires have amended the proposed online gambling framework, opening licenses to local land-based operators. 

Under the original plans, local land-based operators would not have been eligible to apply for online gambling licenses. The rationale for this approach was to “avoid monopolistic practices”, and attract experienced international operators. 

However, those plans were initially approved in February, before Argentina was struck by COVID-19, which has significantly compounded the economic issues the country was already facing. As such, in a recent vote, the Buenos Aires City Legislature voted in favour of opening up online licensing applications to local land-based gaming operators. 

The changes mean that established local operators like Puerto Madero Casino and the Palermo Hippodrome will apply for online licenses. 

A ‘clean record clause’ was also added to the proposed legislation, banning anyone ever convicted of a serious crime, either in Argentina or abroad, from being involved in the management of a Buenos Aires-licensed gambling operator. 

Buenos Aires online licenses will be valid for five years, with no fixed fees, while all operators will be taxed on GGR at between 10-20% depending on the specific vertical, plus an additional 6% ta on net income duties. 

Buenos Aires City Lottery (LOTBA) is expected to be responsible for screening and regulating license holders, while the Buenos Aires Ministry of Finance will collect fees, taxes, and issue penalties. City Governor Horacio Rodríguez Larreta now needs to approve the final amendments to the legislation, after which Buenos Aires will be able to officially launch its licensing process. 

AYO.NEWS says:

It’s understandable that local land-based operators were a little bit miffed at being excluded from online opportunities, and we’re sure the pressure on legislators increased significantly as the COVID-19 economic crisis hit the land-based casinos hard. 

While it means established international operators won’t have it all their own way, the amendments also means there’s likely to be a bunch of local Argentine operators looking for experienced technical suppliers to partner with. 

‘AYO.NEWS says’ features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited or its affiliates or associates. 

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