Online Sports Betting Regulation: Will Argentina beat Canada to the punch?
What do Canada and the South American country of Argentina have in common? Not weather, that’s for sure! But they do both have federal regulations in place to permit some sort of legal sports betting. The difference is that Argentinians can bet on sporting event sin many ways, including single-event bets, whereas Canadians are limited to sports lottery parlays, a.k.a. accumulators. On the upside for Canada, online sports betting with international operators is not illegal, while Argentina strictly prohibits online betting.
The tides could soon be shifting. Due to the reasonably remarkable drop-off in land-based casino clientele right now, some of Argentina’s politicians are pushing for legal online betting on sports. If such a law passes, Argentina will be yet another country to beat out Canada’s regulated iGaming choices.
Argentina Weighs Online Sports Betting Regulation
Buenos Aires is the epicenter of the political push right now. The city has long relied on in-person sports betting to generate much needed tax revenue and, at the same time, maintain profitable control of an activity that would be taking place with or without regulation. Now that revenue streams are plummeting, the push for online betting regulation makes a lot of sense to some.
The current proposal calls for regulations that would permit Casino de Puerto Madero to operate an online sportsbook in Argentina. They believe doing so could generate an estimated $6.8 million in tax revenue.
Not everyone is on board with that plan, though. There are some politicians who are staunchly opposed to the idea, with two notable reasons given. For starters, there are those who fear cannibalization of the land-based market. If sports fans convert to online wagering, and do not return to the retail market in the future, it could destroy the current in-store betting market.
Secondly, and for some, more importantly, is Casino de Puerto Madero’s ties to media mogul and political influential Cristobal Lopez. Mr. Lopez, the former owner of the casino, turned himself in to authorities in 2017 after being charged with fraud and tax evasion. He’s also been accused of collusion and money laundering in his own casino. Needless to say, the integrity of an online operation would come into question.
If lawmakers can get around that probable issue, the proposal would ensure a lot of start-up revenue by way of licenses. Potential operator would need to pay $30k up front in administrative tax fees, and exhibit worthiness by proving a net worth of at least $25 million. A minimum two years experience as a betting operator would also be required.
Meanwhile in Canada…
Canadians have been privileged with legal sports betting for decades now, but only by way of provincial sports lotteries. Parlays, or multi-pick bets, are the only choice we have. Or, we can bet with offshore online sportsbooks – not because it is legal to do so, but because is not illegal.
What we really want, however, is a fully regulated market where more betting options are available. Particularly, Canadians want to see a single-event betting law passed. This would allow for a better range of bets in retail locations, and provide provincial governments with the option to add the same online sports betting options to their existing iGaming portals.
The chance of a proposed bill making its way into the law books increased in 2018 when the US legalized sports betting. An updated bill appeared in Parliament, and was expected to pass with ease, but once more, the subject ended in disappointment when the Prime Minister prorogated Parliament last week. Back to the drawing board…
