Online Gambling Regulation in Argentina: A Province-by-Province Approach
The online casino industry has experienced significant growth in recent years. The COVID-19 pandemic accelerated the shift towards digital entertainment, encouraging more people to gamble online. Since then, laws have been enacted to regulate this rapidly expanding industry.
In Argentina, there is no federal law governing online gambling. Each province has the authority to legislate, or not, on the matter. This fragmented approach has highlighted the consequences of unregulated gambling in some provinces, as well as the benefits of stricter controls in others.
Unlike some other regions, online casinos in Mendoza operate under a clear legal framework, allowing for more effective oversight and increased tax revenue. Residents of Mendoza can access licensed platforms, avoiding the dangers of illegal websites that thrive, especially in areas with legal loopholes.
Mendoza: A Pioneer in Online Gambling Legislation
Mendoza was a pioneer in legislating online gambling. Law N.º 9.267, which regulates online gambling in Mendoza, was passed in 2020, as online casinos were gaining popularity with their attractive and immersive offerings. The law established a regulatory body: the Provincial Institute of Games and Casinos of Mendoza (IPJyC).
The regulations aimed to ensure safe gambling environments for residents of Mendoza. Licenses would only be granted to companies that met the security standards set by the IPJyC. Online casinos must implement cybersecurity measures to protect user data and adhere to responsible gambling policies, including displaying advertisements that warn about the risks of compulsive gambling.
The increase in online scams and cases of gambling addiction among children and adolescents in 2024 has raised concerns. The IPJyC’s actions have been crucial in issuing licenses to secure online casinos that prohibit access to minors, combating the illegal network of online casinos that operates in the shadows.
According to regulations, the IPJyC can grant a maximum of seven licenses to gambling companies through public bidding. Five licenses were awarded over four years, and the remaining two were announced in June of last year. This decision sparked controversy amid growing tensions and criticism of the industry. Ida López maintained that licensing operators moves illegal gambling into the legal sphere.
The Fragmented Regulation of Online Gambling in Argentina
Argentina’s regulatory model differs from those in other countries, where national agencies oversee the entire industry. While each country chooses its preferred methods of control, some argue that fragmented provincial legislation creates opportunities for the illegal market to flourish.
In many regions, the debate remains polarized between those who believe that legalizing online gambling condones an activity that should be discouraged, and those who argue that it establishes frameworks to bring transparency to an existing activity. As the debate continues, more and more users are tempted by quick-money promotions found online.
Legalizing the industry also addresses a key concern for state coffers: tax revenue. Legal online casinos are subject to taxes, which, given the industry’s growth, allow provincial governments to collect significant amounts of money. The potential for greater fiscal control and the urgency to ensure consumer safety are driving the legalization of online gambling in Argentina.
Seventeen provinces have already made progress in enacting laws, appointing supervisory authorities, and developing new projects specifically aimed at dismantling illegal casino networks. Having approved gambling companies, the new challenge for governments will be to develop stronger policies to protect Argentinians, especially young people who have access to all forms of entertainment with just a click.
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