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Uruguay – Uruguay could block 17 offshore operators

By - 15 March 2018

Seventeen offshore gaming sites found to be operating illegally in Uruguay will be blocked now that they have been identified by The Uruguayan Board of Lotteries and Pools Betting (DNLQ).

The stipulated term for these companies (which include Bet365, Pokerstars.net, 888.es and Bwin) to remove themselves from the market is now over. The Director of the DNLQ, Luis Gama told local daily El País that as it was “difficult to determine who is the responsible person” for each of these sites a series of notifications had been made via the Official Gazette reporting the situation. Up until now, none of the operators have responded and presented their case to the Board.

Once the stipulated time is reached, the Communications Services Regulatory Unit (URSEC), will have 48 hours to communicate with the relevant Internet service provider to block these sites which in turn will be given a further 48 hours. According to these deadlines, Gama told El Pais, that in all likelihood that the blocking of offshore websites will go into effect next week. He explained that these websites are illegal in Uruguay because current regulations prohibit any type of betting game not specifically authorised by law.

In February, Gama announced that the agency was working together with a number of different organisations to detect online gambling sites. The working group is made up of members of URSEC, telephone companies, credit card companies and the Central Bank of Uruguay (BCU).

The DNLQ had already compiled a list of sites which were accepting bets in Uruguay which would be blocked, Gama told El País last month. Although the prohibition of bets not authorised by the State derives from previous legislation this has been reinforced in recent months via both an executive decree as well two articles included in the new Accountability Law, which was put forward by the Executive branch. The law is designed to balance the federal budget and support the country’s projected growth, and impacts both individuals and companies.

According to the law “the provision of services through the Internet, technological platforms and computer applications, referred to online gambling or betting” is now illegal.

The official made clear that the only online gaming platform currently allowed is via Supermatch. Supermatch, which went live in October 2005, is the first and only officially sanctioned sports betting site in Uruguay. The site, which is locally run and was developed locally, allows Uruguayans to bet on a number of sporting events including football from a number of leagues around the world. The Supermatch sports betting game achieved the most growth for games run by the DNLQ in 2017: a total of $1,700m (US$ 59.3m) was bet on the game tripling the record for previous years.

Gama also said in February that after blocking illegal websites and “cleaning up the offer” of online betting, the State might look into the possibility of a tender process for more online gaming licences. Gama said that the most popular offshore betting sites in Uruguay were Bwin and Bet365. Although difficult to determine Gama told El País that Uruguayans gambled between at least US$10m and US$20m a year online.

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