Argentina has effectively established legislation for the national iGaming industry, overseeing nearly all types of online gambling and games of chance. This move has elevated Argentina to one of the most robust and prominent iGaming markets in Latin America.
Online Gambling and Casino Market in Argentina
In 2023, Argentina’s online casino sector generated $0.45 billion and is expected to grow in the coming years. The iGaming industry’s perception is improving, aided by sports bookmakers sponsoring numerous football clubs, enhancing the industry’s image and fostering growth. Contributing factors to this growth include:
- All types of online casino games and sports betting games are regulated by laws N15079 and N25.295.
- Argentina is home to the three largest racecourses in Latin America, indicating an existing sports betting culture.
- 15 out of 23 Argentinian provinces already have iGaming regulations, with the remaining 8 working towards regulation.
- The population’s unique passion for football.
In horse racing, the enduring enthusiasm of Argentine bettors led the government to establish a national Tote Board in 1979. This system facilitated bets placed outside the racetrack, whether in lottery establishments or via telephone.
Besides the tradition of horse racing, most of the population is passionate about football. The Primera División is one of the most popular leagues in Latin America and globally, with the Superclásico match drawing worldwide attention.
Argentina boasts around 90 land-based casinos, 550 gambling halls, and a few betting shops, primarily in the Federal Capital. The first casino opened in 2002, followed by the first sports betting site in 2008. The country’s receptive stance towards the iGaming industry has encouraged the development of online gambling, attracting many foreign firms to establish themselves legally in Argentina.
As more casinos strive to enter this lucrative market, the lack of uniform regulations across provinces causes some confusion for operators and players. Below, we explain how online casinos and bookmakers are regulated in Argentina.
The Legality of Online Casino Gaming and Sports Betting
Unlike other Latin American iGaming markets, Argentina chose a decentralized regulatory approach to gambling activities. Rather than having federal government control, the country allowed its provinces to establish their own rules. Consequently, the legal status of gambling differs from one province to another.
On December 31, 2020, Resolution 795/2020 was published in the Official Gazette of the City of Buenos Aires. This resolution aimed to regulate the licensing of betting shops and online casinos while simultaneously opening the application process for obtaining these licenses.
Province Regulations
CABA (Autonomous City of Buenos Aires)
- Regulatory Body: LOTBA (Buenos Aires City Lottery)
- Conditions: No special conditions; applicants must apply and pay the annual fee.
- Licence Duration: 5 years, renewable.
Buenos Aires
- Regulatory Body: Loteria de La Provincia de Buenos Aires
- Conditions: Foreign companies must partner with an Argentine operator, each contributing 50% of the capital.
- Licence Duration: 15 years.
Córdoba
- Regulatory Body: Registro de Licencias de Juegos En Línea
- Conditions: Foreign companies must partner with an Argentine operator, each contributing 50% of the capital.
- Licence Duration: 15 years.
San Luis
- Regulatory Body: Caja Social y Financiera
Misiones
- Regulatory Body: Instituto Provincial de Loteria y Casinos Sociedad del Estado (IPLyCSE)
- Established Regulation: 2015
Chaco
- Regulatory Body: La Loteria Chaqueña
Neuquén
- Regulatory Body: Instituto Juegos de Azar del Neuquén (IJAN)
Tucumán
- Regulatory Body: Loteria de Tucumán
- Updated Regulation: 2019
Entre Ríos
- Regulatory Body: Instituto de Loterías
- Approval: Also requires approval from Instituto de Ayuda Financiera a la Acción Social (IAFAS)
Río Negro
- Regulatory Body: Lotería de Río Negro
- Updated Regulation: 2022
La Pampa
- Regulatory Body: DAFAS of the Social Security Institute
Santa Cruz
- Regulatory Body: Instituto Provincial de Loterías y Casinos
Mendoza
- Regulatory Body: Instituto Provincial de Juegos y Casinos
Corrientes
- Regulatory Body: Provincial Institute of Lotteries and Casinos
- Established Regulation: Resolution N0615-I of 2021
Santa Fé
- Regulatory Body: Santa Fe Lottery
- Regulation Method: Decree
Legal Framework for iGaming in Argentina
Operators wishing to offer iGaming services in Argentina have several options:
- Establish Operations in Argentina:
- Operate locally and adhere to the country’s tax regulations.
- Operate Offshore but be Taxed in Argentina:
- Run operations outside Argentina but comply with Argentine tax laws.
- Offer Services Without a Tax Relationship:
- Provide services to Argentine players without establishing a tax relationship in Argentina, although certain taxes will still apply.
Online Gambling Taxes in Argentina
Operators offering online gambling services in Argentina need to differentiate between national, provincial, and municipal taxes.
National Taxes for All Companies
- VAT: 21%
- Income Tax: 41.5%
Additionally, there are indirect taxes specific to iGaming companies established under Decree No. 293 of June 2, 2022, administered through the Registro de Control Online del Sistema de Apuestas (RCOSA).
Taxes for Operators Based in Argentina
- Registered companies that have invested at least EUR 1,600,000 and increased their payroll by 20% (with a minimum of 20 full-time employees) will be taxed at 2.5%.
- Registered licensed companies that do not meet the above requirements will pay 5%.
- Operators with a licence but not part of RCOSA will be taxed at 7.5%.
Taxes for Operators Outside Argentina
- Companies not located in Argentina but incorporated in the RCOSA will be taxed at 10%.
- Companies not incorporated in the RCOSA or located in low/no tax jurisdictions or without exchange of information agreements with Argentina will be taxed at 15%.
Government Stance and Market Impact
The government’s regulation reflects a positive stance towards the growth and development of the iGaming market. It benefits government revenue and reduces the outflow of money from the country, combating illegal gambling activities.
Offshore Casinos and Player Preferences
Despite the regulations, the number of licensed companies in Argentina is still low, leading many players to seek foreign sites for gambling. Offshore casinos, particularly those licensed in Malta or Curaçao, are popular among Argentinian players due to their perceived trustworthiness and security.
Popular Payment Methods in Argentinian Online Casinos
Argentina is currently facing one of its most complex and confusing financial situations. Since 2012, the country has implemented the “Cepo cambiario,” a series of regulations and restrictions on the exchange and inflow of foreign currency.
Impact on iGaming Companies Operating from Abroad
These regulations significantly affect iGaming companies operating from outside Argentina. Players who wish to withdraw their winnings must contend with several issues:
- Taxes: They must pay VAT and transfer costs.
- Exchange Rates: Players face a lower exchange rate than what is typically used daily.
Popular Payment Methods
To navigate these challenges, players often rely on various payment methods as part of Argentina’s inclusive financial infrastructure. The PayULatam system, along with services like Paysafecard, Neteller, Skrill, and Ukash, are extremely popular and essential for online casino players.
The most popular payment methods among players in Argentina are:
- MasterCard
- Visa
- Rapipago
- PagoFacil
- PayPal
- Skrill
- Neteller
- Mercado Pago
- Cryptos
- Maestro Debit Card
Advantages of Transacting in Argentinian Pesos
Operators that transact directly in Argentinian pesos can benefit from avoiding the intermediate exchange step, streamlining transactions, and potentially offering better value to players.
Cryptocurrency Support
The increasing number of Bitcoin users in Argentina is a promising trend, largely due to the fluctuating conversion rate of the Argentinian peso. Integrating Bitcoin and other cryptocurrencies into your platform could significantly boost player participation and attract more users to your casino or gambling operation.
Online Marketing
iGaming companies with a licence in Argentina can advertise freely but must limit their advertising efforts to the regions covered by their licence. To maximize reach and attract more players, subtle promotion methods like affiliate marketing are highly effective.
Affiliate marketing requires management software that can track traffic and payments related to your affiliates. Our affiliate software, for instance, allows for flexible commission setups and simplifies the payment process within the system, making it easier to manage affiliate relationships and optimize marketing efforts.
Choosing Reliable Online Casino and Sports Betting Software for Argentina
Access to reliable online casino and sports betting software is crucial for a company aiming to succeed in the Argentinian market. When considering entry into this market, selecting a software platform provider with a deep understanding of Argentinian players, their behaviors, and preferences is imperative. Here are key factors to consider:
- Popular Games:
- The most favored online casino games in Argentina include slots with ancient culture themes, live dealer blackjack, French roulette with one or two zeros, and Texas Hold’em poker.
- Free Game Demos:
- Offering free game demos is essential, as many Argentinian players prefer to try games before committing to payments.
- Welcome Bonuses:
- Welcome bonuses should feature a low minimum deposit to be accessible to a broader range of players. Additionally, having a low wagering requirement makes it easier for players to claim these bonuses.
- Additional Bonuses and Offers:
- Providing ongoing bonuses and promotions beyond the welcome bonus is highly valued by Argentinian players.
- Payment Methods:
- While credit and debit cards will be in high demand, it’s important to also offer local payment options like Rapipago and Pago Fácil for players who prefer to deposit cash.
Partnering with the Right Software Company
When selecting a software company to provide online gambling and casino gaming services, cost should not be the sole deciding factor. The iGaming industry is demanding in various aspects, including technology, design, legal compliance, and management. Here are additional considerations:
- Security and Confidence:
- Opt for a provider that offers robust security and instills confidence, even if it means higher costs. This approach helps avoid common pitfalls associated with using cheaper, less reliable software.
- Comprehensive Solutions:
- Look for a software provider that offers a comprehensive solution encompassing all necessary aspects of iGaming operations.
Choosing a reputable and knowledgeable software provider is crucial for ensuring a successful launch and sustained growth in the Argentinian market.