With neighbouring Brazil on the verge of regulation, we take a look at the current state of Argentina’s unique regulated market and how it is performing. Does the country’s provincial framework have more obstacles to overcome? We spoke with Arcangelo Lonoce, Head of Business Development at Habanero, Tatiana Garcia Barrenechea, Commercial Director LatAm at Light & Wonder and Henrique De Simoni, Account Manager LatAm at 3 Oaks Gaming to find out more.
What are the pros and cons of Argentina’s iGaming regulatory framework? Is regulation at province level impacting its overall potential for growth?
Arcangelo Lonoce: Buenos Aires is the key here. For example, this covers a province and a city so it needs two approvals, rather than one on a national scale. Other provinces have a land-based regulatory framework that can be extended to online by operators. External operators have limited opportunities outside Buenos Aires as they need land-based licenses within other provinces. At Habanero, we like to support global entities in their expansion plans but overall, for a supplier, there is no legal issue to do business in the other provinces outside of Buenos Aires provided it is with licensed operators.
Tatiana Garcia Barrenechea: Argentina’s iGaming regulatory framework offers both advantages and challenges due to its provincial-level regulations. On the positive side, these regulations establish a safe and structured environment for players, ensuring protection against fraud and fair play. They also build market legitimacy and trust, which can attract both players and investors, fostering sustainable growth. Additionally, provinces benefit financially from licensing fees and taxes, and can tailor regulations to suit local preferences and market conditions.
The main complexity stems from the varying regulations across provinces. This increases operational costs, as suppliers and operators must navigate different sets of rules and certification processes. This includes additional costs and approval waiting times, which can delay market entry and hinder growth. As a game provider, we must carefully define a market entry list based on performance data and local preferences.
Henrique De Simoni: Argentina has a strong land-based casino heritage alongside other regions such as Uruguay, Paraguay and Peru. This is a good position to be in and how best to proceed with the next steps for each jurisdiction. At the same time however, not having a federal regulatory body implies that the country will be restricted in terms of future development. We see that the USA is still suffering with unregulated markets despite having some states that have embraced iGaming regulatory frameworks. Of course, we cannot compare the size and economics between the two countries, but there are interesting similarities in how the province system is working for iGaming.
Breaking it down, are there certain provinces that have more stringent rules in place than others? How does the capital, Buenos Aires, rank in terms of ease of regulating there?
TGB: In Argentina, there are notable differences in the stringency of regulations between provinces. The City of Buenos Aires and Buenos Aires Province exemplify these discrepancies. For instance, Buenos Aires Province has more restrictive rules compared to the City. The province allows only seven licenses, reflecting a more controlled environment. By contrast, the City of Buenos Aires has an open licensing regime, simplifying the operational process for businesses.
Taxation and game certification also differ significantly. In the City of Buenos Aires, specific certificates are required, and providers must register for a licence. However, in Buenos Aires Province, there is an additional requirement for international operators to partner with local licensees.
HDS: Currently, the concentration of licences is within Mendoza and Buenos Aires. Buenos Aires, in particular, is very demanding in terms of acquiring a licence as it has a complex system in place. The capital is divided into two regions –the city of Buenos Aires and the state of Buenos Aires – both of which have their own regulatory system. Mendoza and other provinces such as Cordoba and Neuquén are easier for those that are applying for the first time and don’t have expertise within the Argentinian iGaming ecosystem.
AL: There isn’t anything particularly problematic in Buenos Aires. The main challenge has been navigating local circumstances. However, from a supplier perspective, the overall requirements haven’t been particularly daunting at all and the process has been streamlined. The biggest problem on a national scale is the legislation on exportation of currency. When it comes to getting paid, there are complications that need addressing and this is the major problem that foreign suppliers have to endure.
Which is the best performing province and why?
HDS: Despite the barriers to obtain the Buenos Aires licence, the grand metropolitan area is still responsible for the country’s best performing region. According to the last census provided by INDEC, the total population of this area is around 15 million people, representing 35% of Argentina’s total population. Buenos Aires also boasts a plethora of different verticals and venues as the area has land-based casinos, jockey clubs, and bingo halls that showcase the very best of betting within the capital. Additionally, the majority of the country’s football teams are also based in this perimeter, allowing significant cross-sell opportunities between sportsbook and casino gaming.
AL: The city of Buenos Aires is outperforming the province of Buenos Aires. This has something to do with the demographics and the fact that the city relies heavily on retail, with a consistent land-based gambling culture in place. Clients of ours have huge operations there, including leading operators in the region, therefore the popularity of retail is the major reason as to why the city is proving to be a real force.
TGB: With a population of over 17 million people and a strong infrastructure for both land-based and digital gaming, the best-performing province in Argentina is Buenos Aires Province. Light & Wonder went live in the market in March and early indications show positive results, most notably with our omni-channel content. Games such as 88 Fortunes have become very popular in land-based venues and this success has been replicated digitally, showcasing high engagement and impressive numbers of gameplay rounds. Moreover, we’re also seeing that our digital-first content from ELK Studios has been well-received in Argentina, just as it has been globally.
What does the future hold for the Argentinian market? Can we expect any other provinces to legalise online gambling over the coming months?
AL: I am not aware of much movement at the moment. Once there is, Habanero will be ready to take the opportunity. The biggest challenge, as mentioned before, is the liberalisation of the currency market. This will have a massive impact on the region and, once liberalised, this will help the market grow. A licensing framework has been opened up so that foreign stakeholders have entered the territory, so problems with paying foreign suppliers needs to be looked at urgently. We hope this will change in time as it complicates things heavily and puts suppliers and operators a challenging positions to ensure profitability.
TGB: The future of the Argentinian market looks promising, driven by a substantial land-based gaming presence and rapidly expanding digital opportunities. Currently, there are six regulated regions in Argentina: City of Buenos Aires, Buenos Aires Province, Entre Ríos, Santa Fe, Cordoba and Mendoza. Notably, Santa Fe has only recently published regulations for online gambling, indicating a trend towards broader legalisation.
Although the current economic situation in Argentina poses challenges for operators and providers, there is optimism that stabilisation will occur. This stabilisation is expected to foster further growth and expansion of the overall market.
HDS: Over the next few years, we can see this market going head-to-head with Mexico to become the second most prominent iGaming market in LatAm. This promising market is constantly adapting in terms of educating people in how to play online. With the law Nº15079 and Nº 25.295 permitting online gambling, eight provinces out of the country’s total of 23 are about to be legalised. However, Argentina could become the first country to accrue all of its licenses from the state and not federal and I believe that could be a huge benefit to Argentina’s economy in the future.
Read More: Which Online Gambling License is Best
