The planned launch of online gambling in the City of Buenos Aires hit a major snag earlier this week as a group of land-based casino operators convinced a judge to temporarily suspend the issuing of online licenses.
The owners of physical properties in the city argued that the capital of Argentina does not have the authority to permit digital gambling and to approve digital gambling licenses.
The Buenos Aires legislature passed last year a legislation authorizing the reorganization of the city’s gambling market in a manner that permitted online gambling activities. The move aimed to create a regulated environment and curb unregulated offshore gambling activities.
The city’s gambling regulator, Loteria de la Ciudad de Buenos Aires (LOTBA), launched in February a license application process for gambling operators interested to conduct online gambling activities within city limits, including sports betting and casino-style gaming.
LOTBA also noted that first regulated gambling websites should be up and running by the fourth quarter of the year. Under Buenos Aires’ newly adopted online gambling legislation, operators of physical gaming properties are not permitted to apply for digital licenses.
However, land-based casinos around Argentina were forced to close in the face of the global coronavirus pandemic and have been bleeding big money as a result from the closures.
Judge Sides with Land-Based Operators
The provision barring land-based casinos from getting online licenses affected the floating casino in Puerto Madero and the casino at the Hipódromo Argentino de Palermo. The owners of the two Buenos Aires properties have recently filed an injunction against LOTBA, seeking to have the licensing process halted.
Earlier this week, Federal Judge Enrique Lavié Pico approved the casino operators’ request. His ruling paved the way for the Buenos Aires legal system to further review the case and effectively halted the issuing of new licenses for the time being.
Another judge has previously tossed out the two operators’ attempt to block the progress of the reorganization of the Buenos Aires gambling market.
The land-based operators argued that the “decision to hold an application process to grant supposed online gambling permits to private operators, would violate federal legislation that established that the regulation of gambling falls within the scope of the City of Buenos Aires.”
With the growing popularity of online gambling in Latin America, Buenos Aires will certainly see a revenue boost from taxes and fees collected from licensed iGaming and sports betting operators, when and if these get the green light to go live in the capital of Argentina.
Interested operators are required to pay an upfront license fee of $30,000 as well as another $2 million as a Guarantee of Compliance. They will also have to pay an annual license fee of $100,000 and contribute 10% of their revenue to the city in order to be allowed to conduct activities within Buenos Aires limits.
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