Buenos Aires strengthens measures against under-age gambling

Shirley Pulis Xerxen May 6, 2024

SiGMA news

Buenos Aires strengthens measures against under-age gambling

Having legalised online gambling in 2021, overseen by Lotería de la Ciudad de Buenos Aires (LOTBA), Buenos Aires authorities are now gearing up to implement stricter compliance measures for gambling operators, both offline and online, within the city.

Concerns and legislative changes

The Buenos Aires legislature has announced amendments to the ‘Codigo Contravencional,’ expanding penalties for gambling violations. Municipal deputies Paola Michielotto and Sergio Siciliano are leading efforts to reinforce gambling regulations, emphasising the importance of promoting and restricting gambling to individuals above 18 years old, whether online or in licensed establishments.

Worries about excessive exposure to gambling advertisements by minors have prompted the proposed changes particularly due to their prevalence on digital platforms and during popular events including football matches. The aim is to mitigate the adverse effects of under-age gambling, which extend beyond financial implications, impacting societal issues and mental health.

Regulatory measures

Strict measures outlined in the proposed include fines for businesses found allowing individuals under 18 to gamble. All establishments in Buenos Aires must adhere to regulations preventing minors from participating in gambling activities. Payment service providers (PSPs) will be mandated to verify adult authorisation for payments made within Buenos Aires, with penalties for non-compliance. Banks and financial institutions will also be prohibited from facilitating fund transfers from under-age accounts to gambling platforms. Additionally, new advertising guidelines mandate warnings about gambling risks and age restrictions on all promotions in the city.

Industry challenges in Argentina

The gambling and lottery industry is facing severe challenges in Argentina, mainly due to high inflation rates, (211.4 percent annual inflation in 2023, the highest in 32 years). Consequently, the Buenos Aires Chamber of Official Lottery Agents (CAOLAB), last February, urged immediate policy changes to mitigate the impact of high inflation rates. CAOLAB emphasized the need for competitiveness without state subsidies. One of their proposals is the introduction of in-person sports betting and video lottery terminals to counter revenue losses, which is a move witnessed in Brazil last month when AMZ Loterias do Brasil launched the first video lottery facility in the country.