Argentina’s Illegal Online Gaming Problem

Published on: 20/05/2023

Gaming has proven to be a strong industry across Latin America in recent years and Argentina is no exception to the upward trend in betting. Unfortunately for local gamblers, industry leaders and government officials, clandestine gaming is now in the majority when it comes to what gaming websites are available. Online gaming shows no sign of slowing down, so it is up to authorities to determine how to better protect citizens from unreliable sites.

The city of Buenos Aires, Argentina from above.

A reported 80% of Argentine gaming websites operate illegally.
?Sadie Teper/Unsplash

Online gaming’s growing popularity

An upward trend in online gaming — from sports betting to casino games to lottery and more — has been seen in many territories in recent years. Though some of this is directly the result of Covid-19 and closures of brick-and-mortar gaming locations, online gaming is a wave that has been coming for a long time.

Increased technology, better platforms and more exciting game offerings have all contributed to its popularity. It is also a convenient way to bet for basically all gaming verticals. All of this has been a dream come true for gamers who wish to seek more betting options to suit their lifestyles. It’s been a boon for the industry, too, but one major snag has meant online betting is not quite all its cracked up to be.

The problem with illegal gaming sites

Due to widespread availability and hazy regulations, online gaming has been much harder to control than its brick-and-mortar counterpart. While illegal gaming houses still pop up and police forces battle to contain them, too, these spots are somewhat easier to track and control than betting that takes place online.

That is because a lot of online gaming falls into a gray area, depending on the territory it is available in. For example, betting platforms that operate legally in one country or state might offer their services to another state which has not yet passed online betting regulation.

Until such regulation is in place — as is currently under discussion in Brazil and other LATAM countries — online betting might not be strictly “illegal,” perse — but it is not fully legal either. That means bettors can access sites, register, pay and win real money, but without invaluable government oversight.

Essentially, without regulated betting, governments find it hard to enforce rules and protect their citizens. Meanwhile, gaming fans take part using online platforms that offer the games they like and real payouts; but problems can occur if those sites do not pay out as promised. Governments cannot always do much to help their citizens in this case, which is a problem currently facing Argentina.

Argentinian online gaming

Argentina’s gaming authorities have recently indicated that a troubling eight out of ten — 80% — of online gaming sites in the country operate illegally. President of Argentina’s Provincial Institute of Lottery and Casinos, Omar Galdurralde, spoke to the issue, explaining that this means citizens lose out in several ways.

For one, the government takes no part of the platforms’ earnings via tax and licensing, meaning they cannot put profitable gambling revenue towards public works projects. The country loses out on valuable contributions to infrastructure, education, health projects and much more.

Galdurralde also pointed out the issue of players not retrieving the prizes they are promised, and the limited capacity of Argentina’s gaming regulators to do something about this. One solution has been proposed however. The betting authority ALEA has made a new agreement that only “bet.ar” domains are approved for gaming sites in the country. Hopefully this step, along with increased gaming education, will improve player’s chances of fair games.

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A pink government building, Casa Rosada, in Buenos Aires, with an Argentina flag waving outside on a bright day.

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