Interactive
Argentina – International interest high as Buenos Aires opens up online market
By Phil - 3 June 2019
Seven operators have put forward bids in order to offer online gambling in the province of Buenos Aires with more likely to follow before the deadline lapses on June 25.
The list of seven companies was published via the Provincial Lottery website after the Provincial Institute of Lottery and Casinos (IPLyC) officially put in place online gaming rules in April. The new regulations were published in the Official Gazette of the Province of Buenos Aires and signed by the governor of Governor of Buenos Aires, María Eugenia Vidal.
Crucially a number of international companies have teamed up with local partners in order to take part. Atlantica de Juegos has put forward a proposal with Stars Interactive. ArgenBingo are working with William Hill. Bingo Pilar with PPB Counter Party Services (Flutter Entertainment, the operator formerly known as Paddy Power Betfair). While local operator BinBaires is teaming up with Intralot. Meanwhile, Hotel Casino Tandil-Dynamo Tyche is making a move into the market with Playtech Software Limited. However two local operators: Biyemas and Slots Machines have opted to take part without a foreign partner.
In Argentina online gaming has been permitted since 2006 but only on a province to province basis and there is no national law in place which regulates online gaming. The government has historically been opposed to opening up the online gaming industry but needs to raise additional income in the face of another economic crisis.
According to new rules, the province will grant up to seven licenses in all. Only one licence will be granted per operator. The government will set up a commission that will be responsible for granting the licences and will take into account 20 minimum requirements, including the financial background, technical know how as well as data security measures, and the number of events and sports the potential licensee plans to offer.
The new law allows for online casino as well as sports betting. The player must be located in the province while making a bet online according to the new law. Apart from taxes the licensee must pay $65,000,000 as a fixed fee. On signing the agreement, the license holder will make a payment amounting to 40 per cent of the total, another 40 per cent will be applicable in the first year; and the remaining 20 per cent will be payable in the second year. Within 10 days of notification of the granting of the license, the licensee must also present a Performance Bond of $130,000,000 with respect to the first twelve months of the execution of the agreement. The newly regulated industry will be run by the provincial Executive Power, through the Provincial Institute of Lottery and Casinos (IPLyC).
