Stretching over most of the southern portion of South America, Argentina ranks as the world’s eighth biggest country with a population of 45.7 million citizens. Officially the Argentine Republic, the country uses a federal model and consists of 23 provinces plus the autonomous City of Buenos Aires. With a GDP of $445.4 billion as of 2019, the country’s economy is driven mostly by the manufacturing, agriculture, and services sectors.
Argentina achieved independence from Spain in 1816 after three centuries of colonization. Colonials were passionate about gambling, so it only makes sense the locals also developed a taste for betting activities. Today, Argentines can gamble legally both in landbased venues and over the internet.
However, the legalities when it comes to gambling in Argentina are complex, which largely results from the federal model the country uses. Similarly to the United States and Canada, gambling is regulated by the authorities of each provincial jurisdiction. Needless to say, each province implements an individual approach toward gambling regulation and licensing.
Some federal laws also apply to the sector, which further adds to the complexity of the legal landscape in Argentina. With that in mind, Argentines can legally enjoy various forms of gambling such as poker, bingo, sports betting, lotteries, slots, and casino table games. Let’s have a more detailed look at gambling in Argentina and how the country regulates it.
Laws That Govern Gambling in Argentina
Gambling is generally legal in Argentina provided that the operators have received authorization from the competent provincial authorities. Respectively, offering gambling services without having 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. The new section was appended to the Penal Code through Law № 27346. Individuals guilty of operating gambling services without authorization risk imprisonment for three to six years.
Provincial laws provide broad definitions of gambling without addressing any specific types of products. Let’s take the Province of Buenos Aires as an example where Law № 13470 is in place. According to Article 2 of the legislation, gambling comprises any game or activity of a recreational nature carried out manually, electronically, or electromechanically whose outcome depends solely or mostly on chance or skill.
Respectively, the participants must stake money or securities to win the prizes. The definition extends to lotteries, raffles, quinella, and pool wagering, but excludes activities taking place in private households among families and friends. Law № 538 of the City of Buenos Aires provides a similar definition in Article 3(a).
Conducting gambling services without a proper license from the province of Buenos Aires is punishable by law. Violators face imprisonment and hefty fines. The same applies to promoting or marketing unauthorized games. Individuals who abet unlicensed gambling operations are also subject to penalties under Law № 13470. If caught cooperating with such businesses, they risk jail time 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 among the members of Argentine society who can gamble legally but only with licensed operators. All 24 provincial jurisdictions regulate brick-and-mortar gambling activities, with lottery tickets, casinos, slot and betting parlors being strewn across Argentina.
The autonomous district of the City of Buenos Aires even has a floating casino that houses more than a hundred tables and 1,500 video gaming terminals. The Argentine capital is also home to a horse racing course with more than 4,000 video gaming machines and over 1,200 parlors where lottery tickets are sold. Provincial cities generally have more venues with video gaming terminals than casinos where dealers host table games.
The exact licensing requirements vary from one provincial jurisdiction to another. Most provincial jurisdictions like the City of Buenos Aires and Cordoba require applicants to register with their corresponding regulatory bodies. All operators applying for licenses must undergo obligatory criminal record checks.
The exact conditions and licensing procedures are reviewed on an individual basis across the provinces. However, license applicants must generally incorporate Argentine entities before they can run a gambling business. In some parts of the country like the Province of Buenos Aires, foreign companies looking to receive permits for remote gambling must team up with local brick-and-mortar operators. Respectively, the proceeds participation of the local entities should be 15% or more.
The licenses’ duration again varies based on provincial jurisdiction. Permits issued by the authorities of the Buenos Aires Province have a validity of 15 years but renewal is impossible. By contrast, licenses granted by the authorities of the City of Buenos Aires last for 5 years, with the option to extend them for five more afterward.
Taxes Imposed on Gambling Businesses in Argentina
Argentina implements a three-tier taxation system, requiring authorized gambling operators to pay taxes on a federal, provincial, and municipal level. One exception is the City of Buenos Aires where there are only two tax tiers, namely provincial and federal. Under the provisions of Law № 27346, gambling businesses must pay a 41.5% income tax on a federal level.
Additionally, there is a value-added tax (VAT) of 21% imposed on gambling operations that charge players for participating in the games. One example is poker where the house collects rake from all participants at the tables. The gambling operators’ bank accounts are also subject to a 0.6% tax imposed on credits and debits.
Gambling businesses are not the only ones to contribute taxes, however. On a federal level, professional gamblers and esports players must pay income taxes on their profits. As for the provinces, they generally collect several types of taxes, starting with the turnover tax. The latter applies to the gross gambling revenue (GGR) of the operators, but the exact rates are province-specific.
Administrative fees are also in place and go toward the appointed gambling regulators in the provinces. Finally, there is the so-called stamp tax that applies to agreements executed by the gambling businesses. In most provincial jurisdictions, brick-and-mortar gambling venues have to contribute taxes to the municipalities. As we previously said, the City of Buenos Aires is an exception since it lacks a municipal taxation level.
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. It outlines the measures and procedures applicable to gambling firms that offer chance-based games. The authorized operators must implement adequate AML procedures, perform regular audits, and appoint officers to observe for compliance.
The personnel of licensed gambling venues must undergo special training allowing employees to detect illicit transactions. Payments in prizes exceeding $1,800 are subject to additional checks. Another requirement states that all gambling-related transactions should be carried out in the local currency, the Argentine peso (ARS).
Some provinces like the Province of Buenos Aires, for instance, require the transactions to go through state-owned banking institutions. Argentine law does not expressly prohibit decentralized cryptocurrencies but their use for gaming-related transactions currently remains unauthorized. Debts incurred through gambling are not enforceable in the country.
Gambling Advertising in Argentina
It makes sense 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 provincial jurisdictions, the operators must include warnings about the potential social harms associated with gambling.
As an example, we shall refer to the advertising rules applicable in the City of Buenos Aires under the provisions of Law № 538. Article 12 of the 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. Respectively, individuals under the legal gambling age of 18 cannot appear in advertising or marketing materials related to gambling.
Online Gambling Regulations in Argentina
Players from Argentina face a broad choice of offshore gambling sites that accept real-money stakes in their local ARS currency. However, some provincial jurisdictions have adopted a more severe approach toward foreign remote operators who service locals without proper authorization.
One example again comes from the City of Buenos Aires where offshore firms frequently have their websites blocked by Argentine internet service providers (ISPs). Additionally, the authorities have instructed local payment services companies to refrain from processing financial transactions to offshore gaming sites.
One interesting aspect of Argentine law is that it treats remote gambling businesses based in different provinces as offshore operators. Thus, a website authorized to service players from the Province of Buenos Aires, for instance, cannot legally accept bets from the 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
Since Argentine authorities have not yet adopted geoblocking, they usually resort to imposing payment method restrictions to hinder unlicensed offshore betting. Thus, players can only cash out their winnings in lottery ticket parlors and sports betting shops based in the respective provincial jurisdiction issuing the online gambling license.
With that said, online gambling is not legal across the entire country but rather is limited to specific provinces, 16 to be precise. These include Santa Fe, Santa Cruz, La Pampa, Mendoza, Rio Negro, Misionesm and Entre Rioz. The Province of Buenos Aires and the City of Buenos Aires regulate online gambling activities under the provisions of Law № 15079 and the Decree № 181/2019.
Online Gambling in the Province of Buenos Aires
The Province of Buenos Aires allows for online casino games, lotteries, wagering on virtual games, sports and horse race betting. Both private and public entities can apply for licenses from the Provincial Lottery and Casino Institute (PLCI) on condition they have registered offices in the Province of Buenos Aires.
In January 2021, the provincial regulatory body announced it has granted operating permits to seven gambling companies, including major brands like Betsson, 888Holdings, Flutter Entertainment, and William Hill. Each licensee must contribute a fixed fee amounting to AR$65 million.
The approved operators must pay AR$26 million upfront when they sign their licensing agreements, with the remaining amount to be paid later. Only applicants that meet the regulator’s financial capacity and industry experience requirements can gain approval.
Online Gambling in the City of Buenos Aires
The Autonomous City of Buenos Aires has its own framework that regulates online gambling. It requires licensees to obtain operating permits from the local watchdog, the Lottery of the City of Buenos Aires (LOTBA, or Lotería de la Ciudad in Spanish). The entity oversees mutual betting, sports wagering, and skill and chance-based games, among other activities.
The local regulatory regime imposes no restrictions on the number of licenses. However, one condition is for the applicants to have cumulative sales revenue exceeding AR$100 million and a minimum of two years of experience in the gaming industry. Operators who have previously been servicing the Argentine market without authorization cannot apply for licenses.
In November 2020, the country’s federal government announced it plans to increase the annual taxes for online gambling operators from 2% to 5% as of 2021. The new tax rate applies to all online betting transactions. Operators based in low-taxation jurisdictions are subject to higher tax rates of 10%. The move aims to bring additional revenue to the federal and provincial coffers.
Conclusion
Estimates suggest the online gambling segment in Argentina generates approximately $2.4 billion in revenue each year. However, the benefits for the Argentine government are almost non-existent as the sector is not fully regulated yet.
Some industry experts argue against the 2021 tax rate increase, stressing the country still lacks proper regulations on a federal level. This would hopefully change when all provincial jurisdictions in Argentina move forward with the legalization process and set forth clear regulatory frameworks.
