Stretching over most of the southern portion of South America, Argentina ranks as the world’s eighth-largest country, with a population of 45.7 million. Officially known as the Argentine Republic, the country follows a federal model and is composed of 23 provinces and the autonomous City of Buenos Aires. With a GDP of $445.4 billion as of 2019, its economy is driven primarily by the manufacturing, agriculture, and services sectors.
After three centuries of colonization, Argentina achieved independence from Spain in 1816. The colonists were passionate about gambling, so it makes sense that the locals also developed a taste for betting. Today, Argentines can gamble legally both in land-based venues and online.
However, the legalities of gambling in Argentina are complex, largely because of the country’s federal model. Similar to the United States and Canada, gambling is regulated by the authorities in each provincial jurisdiction. As a result, each province implements its own approach to gambling regulation and licensing.
Some federal laws also apply to the sector, further adding to the complexity of Argentina’s legal landscape. As a result, Argentines can legally enjoy various forms of gambling, including poker, bingo, sports betting, lotteries, slots, and casino table games. Let’s take a closer look at gambling in Argentina and how the country regulates it.
Laws That Govern Gambling in Argentina
Gambling is generally legal in Argentina, provided the operators have obtained authorization from the competent provincial authorities. Conversely, offering gambling services without a proper license is an offense under the Argentine National Penal Code.
Law № 27346 and Law № 13470
Licensing Conditions for Operating a Gambling Business
Taxes Imposed on Gambling Businesses in Argentina
Law № 27346 and Law № 13470
Article 301 bis states that any person who “exploits, manages, operates, or in any way organizes […] any modality or system for capturing games of chance without the authorization of a competent jurisdictional authority” is in violation of the law. This provision was added to the Penal Code through Law № 27346. Individuals found operating gambling services without authorization risk imprisonment for three to six years.
Provincial laws provide broad definitions of gambling without addressing specific product types. For example, in the Province of Buenos Aires, Law № 13470 is in force. According to Article 2, gambling includes any game or recreational activity carried out manually, electronically, or electromechanically whose outcome depends solely or predominantly on chance or skill.
Accordingly, participants must stake money or securities to compete for prizes. The definition extends to lotteries, raffles, quinella, and pool wagering, but excludes activities that take place in private households among family members and friends. Law № 538 of the City of Buenos Aires offers a similar definition in Article 3(a).
Running gambling services without a proper license from the Province of Buenos Aires is punishable by law, and violators face imprisonment and hefty fines. The same applies to promoting or marketing unauthorized games. Individuals who aid unlicensed operations are also subject to penalties under Law № 13470. If caught assisting such businesses, they risk jail terms of one to six months, along with fines ranging from 10 to 100 minimum wages.
Licensing Conditions for Operating a Gambling Business
Gambling is broadly accepted in Argentina, and residents can gamble legally but only with licensed operators. All 24 provincial jurisdictions regulate brick-and-mortar gambling activities, with lottery outlets, casinos, and slot and betting parlors scattered across the country.
The autonomous district of the City of Buenos Aires has a floating casino that houses more than a hundred tables and 1,500 video gaming terminals. The capital is also home to a horse-racing course with more than 4,000 video gaming machines and over 1,200 outlets where lottery tickets are sold. Provincial cities generally have more venues with video gaming terminals than casinos that offer dealer-hosted table games.
The exact licensing requirements vary from one provincial jurisdiction to another. Most jurisdictions, such as the City of Buenos Aires and Cordoba, require applicants to register with their respective regulatory bodies. All operators applying for licenses must undergo criminal record checks.
Conditions and procedures are reviewed on a case-by-case basis across the provinces. However, license applicants must usually incorporate Argentine entities before they can run a gambling business. In some parts of the country, such as the Province of Buenos Aires, foreign companies seeking permits for remote gambling must partner with local brick-and-mortar operators. The local entities must generally hold at least 15% of the proceeds.
License duration also varies by province. Permits issued by the authorities of the Province of Buenos Aires have a validity of 15 years with no option for renewal. By contrast, licenses granted by the City of Buenos Aires last for five years, with the option to extend them for five more.
Taxes Imposed on Gambling Businesses in Argentina
Argentina employs a three-tier taxation system that requires authorized gambling operators to pay taxes at the federal, provincial, and municipal levels. An exception is the City of Buenos Aires, where only two tiers apply: federal and provincial. Under Law № 27346, gambling businesses must pay a 41.5% income tax at the federal level.
In addition, a value-added tax (VAT) of 21% applies to gambling operations that charge players for participation. Poker is one example, as the house collects rake from all participants at the tables. Operators’ bank accounts are also subject to a 0.6% tax on credits and debits.
Gambling businesses are not the only entities that contribute taxes. At the federal level, professional gamblers and esports players must pay income tax on their profits. Provinces generally collect several types of taxes, starting with the turnover tax, which applies to operators’ gross gambling revenue (GGR). Exact rates differ by province.
Administrative fees are also in place and go to the appointed gambling regulators in each province. Finally, a stamp tax applies to agreements executed by gambling businesses. In most jurisdictions, brick-and-mortar venues must also pay municipal taxes, although the City of Buenos Aires remains an exception because it lacks a municipal tier.
AML Requirements Imposed on Argentine Gambling Operators
Licensed operators in Argentina must also comply with the anti-money laundering (AML) policies set forth in Resolution № 199/2011, which specifically addresses the gambling sector. The resolution outlines the measures and procedures applicable to gambling firms that offer chance-based games. Authorized operators must implement adequate AML procedures, conduct regular audits, and appoint officers to oversee compliance.
The personnel of licensed gambling venues must undergo specialized training that enables them to detect illicit transactions. Prize payments exceeding $1,800 are subject to additional checks. Another requirement states that all gambling-related transactions must be carried out in the local currency, the Argentine peso (ARS).
Some provinces, such as the Province of Buenos Aires, require transactions to be processed through state-owned banking institutions. Argentine law does not expressly prohibit decentralized cryptocurrencies, but their use for gaming-related transactions is currently unauthorized. Debts incurred through gambling are not enforceable in the country.
Gambling Advertising in Argentina
It makes sense that Argentine law prohibits the marketing of unlicensed gambling services to residents. Licensed entities can promote their products, but the exact restrictions are province-specific. In some jurisdictions, operators must include warnings about the potential social harms associated with gambling.
As an example, consider the advertising rules that apply in the City of Buenos Aires under the provisions of Law № 538. Article 12 of this legislation states that marketing materials related to gambling products should provide basic information about the games’ modalities and the amounts players can stake or win. Accordingly, individuals under the legal gambling age of 18 cannot appear in gambling advertising or marketing materials.
Online Gambling Regulations in Argentina
Players from Argentina have access to many offshore gambling sites that accept real-money stakes in Argentine pesos (ARS). However, some provincial jurisdictions have adopted a stricter approach toward foreign remote operators that serve locals without proper authorization.
The City of Buenos Aires is a prime example, where offshore firms frequently have their websites blocked by Argentine internet service providers (ISPs). The authorities have also instructed local payment-service companies to stop processing transactions for offshore gaming sites.
A peculiar aspect of Argentine law is that it treats remote gambling businesses based in other provinces as offshore operators. Therefore, a website authorized to serve players in the Province of Buenos Aires cannot legally accept bets from other provinces.
Law № 15079 and Decree № 181/2019
Online Gambling in the Province of Buenos Aires
Online Gambling in the City of Buenos Aires
Law № 15079 and Decree № 181/2019
Because Argentine authorities have not yet adopted geoblocking, they typically impose payment-method restrictions to curb unlicensed offshore betting. As a result, players can cash out their winnings only in lottery parlors and sports-betting shops located in the provincial jurisdiction that issued the online gambling license.
Online gambling is not legal nationwide; it is limited to 16 specific provinces at the time of writing. These include Santa Fe, Santa Cruz, La Pampa, Mendoza, Río Negro, Misiones, and Entre Ríos. The Province of Buenos Aires and the City of Buenos Aires regulate online gambling under the provisions of Law № 15079 and Decree № 181/2019.
Online Gambling in the Province of Buenos Aires
The Province of Buenos Aires permits online casino games, lotteries, wagering on virtual games, sports, and horse races. Both private and public entities may apply for licenses from the Provincial Lottery and Casino Institute (PLCI), provided they maintain registered offices in the Province of Buenos Aires.
In January 2021, the provincial regulator announced that it had granted operating permits to seven gambling companies, including major brands like Betsson, 888 Holdings, Flutter Entertainment, and William Hill. Each licensee must pay a fixed fee of AR$65 million.
Approved operators must pay AR$26 million upfront when they sign their licensing agreements, with the balance due later. Only applicants that meet the regulator’s financial-capacity and industry-experience requirements can obtain approval.
Online Gambling in the City of Buenos Aires
The Autonomous City of Buenos Aires has its own framework for online gambling. Licensees must obtain operating permits from the local watchdog, the Lottery of the City of Buenos Aires (LOTBA, or Lotería de la Ciudad in Spanish). LOTBA oversees mutual betting, sports wagering, and both skill- and chance-based games, among other activities.
The local regime imposes no cap on the number of licenses. Applicants must, however, have cumulative sales revenue exceeding AR$100 million and a minimum of two years of experience in the gaming industry. Operators that have previously served the Argentine market without authorization cannot apply.
In November 2020, the federal government announced plans to increase the annual tax for online gambling operators from 2% to 5% starting in 2021. The new rate applies to all online betting transactions. Operators based in low-tax jurisdictions are subject to an even higher rate of 10%. The measure aims to generate additional revenue for federal and provincial coffers.
Conclusion
Estimates suggest that the online gambling segment in Argentina generates approximately $2.4 billion in revenue each year. However, the benefits for the Argentine government are almost nonexistent, as the sector is not yet fully regulated.
Some industry experts argue against the 2021 tax rate increase, stressing that the country still lacks proper regulations at the federal level. Hopefully, this will change as all provincial jurisdictions move forward with the legalization process and establish clear regulatory frameworks.
