The online gambling industry has generally proved to be a very lucrative industry for state governments that legalize and regulate iGaming. However, there are always concerns that licensing and supporting online gambling could pose other challenges such as problem gambling, possible money laundering and under age gambling.
Argentina looks like it is going to be moving forward with plans to increase online gambling in the country. A budget proposal has been put forward in Buenos Aires that would allow the biggest province and capital city to issue licenses to seven online gambling operators.
Online Gambling Tax to be Introduced
A senate committee is now studying the proposal, which also seeks to impose a 2% tax on bingo and casino winnings. A social fund will also be set up, into which all tax collections will be funneled.
The government is taking a firm stance on license applicants, saying they should first set up a shop in Buenos Aires before being granted a license. Buenos Aires would also impose tough measures on unauthorized gambling sites that accept wagers from local punters. It would partner with other provinces to identify illicit operators and would have their domain blocked.
Under the proposal, the operators’ online revenue would be taxed at 15%. The plan would boost the 2.2 billion in the local currency which is the equivalent of $61.8 million of annual gaming revenue.
Greater Control
The proponent of the Budget Bill 2019, Gov. Maria Eugenia Vidal said authorizing in-house gambling would give the government greater regulatory powers.
Vidal who has in the past been a vocal opponent for the gaming industry made a surprise move when she unveiled the proposal earlier this week. The Governor said she has no problem with casinos being built in tourist areas, but she said gambling rooms should not be set up in poor places.
Justifying her proposal, Vidal said authorizing online gambling in the province, which has around 16 million residents, will enable the government to have greater control of how the online gambling process works, as well as provide enhanced protection for vulnerable players through self-exclusion tools.
The seven online gambling licenses would span online casino games, sports wagering, as well as races and pop culture events.
If Vidal’s proposal pushes through, Buenos Aires could open a new million-dollar market for online gambling, generating much-needed revenue to tackle the economic crisis.
According to local media, Vidal’s proposal was influenced by Matias Lanusse, Director of the Buenos Aires Province Institute of Lotteries and Casinos. Lanusse reportedly took the online gambling idea to Vidal, highlighting the opportunities it would create for the city.
Entre Rios Bans Online Gambling
Meanwhile, as Buenos Aires mulls the provision of online gambling licenses, the province of Entre Rios, just north of Buenos Aires is banning all forms of online gambling that are not authorized by the Institute of Financial Assistance to Social Action of Entre Rios (IAFAS). The institute issued a resolution late last month.
The IAFAS has not come up with new online regulations yet but is reportedly developing an online gambling platform for its services.
Misionbet Is Off Again
In the province of Misiones meanwhile, online gambling site Misionbet is playing possum yet again. The website has been offline since the 31^st of October and the Provincial Institute of Lottery and Casinos of the State Society (IPLyC), which runs Misionbet, said the site was taken offline for reasons not within their control.
Misionbet launched in 2015 but has been going on and off since May 2017 after being accused by a Buenos Aires prosecutor of taking wagers from residents in Buenos Aires without obtaining necessary approval.
The website went live once again in January after promising authorities in other provinces that it would only serve locals located in the province of Misiones. Last week, the site left an offline screen message saying it is working on its platform to give customers a superior proposal while continuing to make online gambling a recreational and responsible activity.
IPLyC said Misionbet is temporarily offline as the site is working towards ensuring that its responsibilities in relation to transparency and customer security are met.
But local media outlet Primera Ediction thinks it could be because IPLyC’s contract with Integrated Systems SA had expired. Misionbet’s online tech provider is Integrated Systems SA.  Sources state that IPLyC is working towards to have its technology managed by an in-house team.