Acquiring a Gambling Licence in Argentina

Getting a gambling licence in Argentina means entering a Latin American market that is both complicated and one of a kind.

Gambling is regulated here on a provincial level, which means that enterprises need to be strategic and follow all local rules exactly, as well as have a full legal audit.

A decentralized way to regulate online gambling

There is no single national law in Argentina that covers interactive gaming. The 23 provinces and the independent city of Buenos Aires each have their own rules for licencing and oversight.

Because of this, gambling activities in Argentina can only be licenced if they follow the rules of each jurisdiction, which take into consideration decentralized governance, local restrictions, and competitive tender conditions.

Local regulators have full power over market entrance, oversight, fiscal control, and social policy. Provincial legislative measures might be very different from each other. For example, the number of licences available or the requirements for working with local businesses can be very different.

Companies that want to get their iGaming platform certified in Argentina need to know that each province may have its own list of recognized labs and technical criteria. Different places have different rules for the platform, payment methods, player identity systems, and reporting.

Provinces with current online gambling regulations in Argentina

Here are some of the most important places where licencing is now going on:

The LOTBA is in charge of the Autonomous City of Buenos Aires. Seven licences have been given out, and all of them are now in use. Foreign operators can only get access by buying an ownership position or making a deal with an existing licensee.

The IPLyC BA is in charge of the Province of Buenos Aires. Seven licences have been given out, and four of them are still operating. licences are good for 15 years. For international enterprises to be able to participate directly, they need to set up a business in the country. In Argentina, it is required to register a company for iGaming.

Lotería de Córdoba is the regulator for the province of Córdoba. There can be up to ten licences, and four are already in use. New applications are welcome as long as they meet the conditions for competition and economic stability.

To register a gambling business in Córdoba, Argentina, you need to set up a legitimate business and create a provincial bank account.

Mendoza, Santa Fe, Neuquén, Entre Ríos, and Río Negro are some provinces that are working on or have new rules.

A Case Study: Getting a Gambling Licence in Córdoba Province

Córdoba is one of the most open and clear places in Argentina for getting a licence to run gambling businesses. Lotería de Córdoba is the regulator, and it works under Law No. 10793.

There are only 10 licences available, and four of them have already been given out. Córdoba allows foreign corporations to get involved as long as they work with a local company to form a joint venture.

Operators must show that their initiative is strategically important to the province (for example, by creating jobs, bringing in tax money, or being socially responsible).

To be able to take part in the Córdoba licencing tender, you must meet the following requirements:

To be able to take part in the Córdoba gambling licencing tender, applicants must meet a strict set of requirements that are meant to protect the integrity of the gambling operations and ensure they benefit the local community.

A basic condition is that a legal entity must be registered in Córdoba or that a joint venture must be formed with an existing local operator. This mandate shows how serious the province is about encouraging regional economic participation and control in the growing iGaming business.

In addition to registering, anyone who wants to get a licence must fully disclose their ownership structure and beneficial owners to make sure everything is clear. The goal of this strict vetting process is to stop illegal financial activity and keep the sector honest.

Also, the honesty of the people in charge is quite important. The tender clearly states that no controlling individuals can have been convicted of a crime or filed for bankruptcy in the last two years. This important rule protects the industry against people or businesses with bad credit histories or legal problems.

Applicants must also show that their finances are stable over the long term by providing full audited financial reports for the last three years.

These reports must clearly illustrate that the applicant has enough assets to cover at least 12 months of business expenses, which will guarantee their long-term sustainability and ability to satisfy their financial responsibilities.

To make sure it meets established regulatory standards for fairness, security, and functionality, the proposed iGaming platform must undergo a lot of technical certification.

Following Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) standards is just as vital, since it shows Argentina's commitment to fighting financial crime. This includes strong Know Your Customer (KYC) checks and keeping an eye on all transactions all the time.

It is very important that all servers and data storage are located in Argentina so that data sovereignty is protected and regulatory control is easier.

Lastly, successful candidates must give the provincial authorities a large guarantee deposit, which acts as a financial safety net in case they don't follow the rules or have to pay for something.

In addition, a clear plan for social responsibility development is required. This plan should include steps to encourage responsible gambling and have a good impact on the local community. These strict rules make sure that only trustworthy and well-funded businesses can get a licence to do business in Córdoba.

The legal strategy in Córdoba should be based on the ideas of localization, compliance, and sustainability.

Requirements for participation and applicant status

Foreign capital can only get in through a joint venture with a resident, who must get at least 15% of the money made from the iGaming operation. This has to be a real profit sharing, not just a nominal stock investment.

Regulators need complete disclosure of beneficial owners and senior executive management, as well as due diligence to make sure they have a good reputation.

When applicants send in their application dossier, they must:

• In the province where you want to do business, register a joint venture.
• Make a cooperation agreement with the local partner that says they will get at least 15% of the profits.
• List of stockholders, including their stakes, nationality, residency, and where they got their money.
• Make sure that there have been no criminal convictions, bankruptcies, or disqualifications in the last two calendar years.
• Give résumés and profiles of important managers, like the director, the financial lead, and the technical lead.
• Provide tax certificates and copies of the corporate register from the nation where the parent company is based.
• Include statements that say you will follow local codes of behavior and regulatory norms.
• Show how the local partner is really involved (for example, with an office, staff, and technical integration).
• Add a corporate governance framework that shows how the company is accountable to the regulator.
• Show proof that the joint venture will be the licensee and not just a technical contractor for a parent company based outside the US.

Foreign companies that want to get a gambling licence in Argentina must not only set up the right legal structure, but they must also show that they are ready to work together for real, not just set up fake structures or try to hide who owns the business.

Starting a gambling business: what you need to know about money and operations

In Argentina, the rules governing gambling include a company's ability to stay in business, its operating resources, and its promises to give players their money back. Applicants must show that they are financially secure, have a stable business strategy, and a way to protect the interests of users.

Important financial factors are:

Getting an iGaming licence in Argentina is hard because the rules are different in each region. You need to know exactly what each province wants. Meeting the minimum capital and financial guarantee criteria is a top priority for any potential operator. For example, in the independent City of Buenos Aires, you must show that you have at least $25 million in net assets to prove that you are financially stable.

This high bar shows that the regulator wants to make sure that only financially sound and secure businesses can enter the market. This will protect players' money and the general integrity of the local gaming ecosystem.

In addition to static assets, a dynamic measure of financial capabilities is also reviewed by the need of a minimum annual turnover of $1.6 million, which shows that the business is running well and actively.

Also, all applicants need to set up money for the $30,000 state licence cost. This money, which cannot be refunded, pays for the administrative costs of reviewing the complicated application, such as due diligence and regulatory reviews.

The guarantee deposit is an important part of being financially responsible and protecting players.

This deposit is more than just a fee; it is an important protection that covers a number of possible obligations. These include possible fines for breaking the rules, paying players in case of disputes or operational failures, and any other obligations that may come up for participants.

This guaranteed deposit must be kept in a separate account at an Argentine bank in the right jurisdiction to make sure that the money is safe.

This stringent separation guarantees that these monies are separate from operational resources and may be easily accessed to cover player-related debts, even if an operator goes bankrupt.

All player monies must be kept in a local bank account in the province where they are playing, in addition to the guarantee deposit. This criterion is important for keeping financial flows clear and making it easier for provincial regulators to keep a close eye on things.

This local banking presence is also good for the economy of the host province because it encourages people to do business there.

A full economic rationale is an important part of the licencing application. This is a thorough business plan that shows how much money the business expects to make over a set period of time, usually a few years.

This strategy needs to show that the planned iGaming business can make money and stay in business over time. It needs to include reasonable predictions of revenue, operational costs, and profits.

The company strategy must also include backup plans in case things go wrong, which is quite important. This part is meant to see if the applicant is ready for possible changes in the market, economic downturns, or other operational problems. It makes sure they have strong plans in place to reduce risks and defend the interests of players.

These financial factors show that the Argentine provinces are committed to a well-regulated, financially stable, and player-focused iGaming business.

Financial and operational responsibilities include:

• Audited financial statements for three years.
• A separate bank account for player money.
• Enough insurance or a savings account.
• Proof of starting funds, investment tranches, and operating budget for the first 24 months.
• Paying the set state charge of $30,000.
• A business strategy that includes operational parameters like user numbers, expected turnover, and margin.
• Plans for developing staff, infrastructure, and premises.
• Contracts with software companies, payment processors, and organizations that give such certifications.
• Regulators can always see data on financial transactions.
• Proof that the player and operational monies are kept separate from each other.
• A way for players to get their money back when the business stops operating.

Regulators carefully look at all financial and operational information, focusing on making sure that payments are guaranteed, transactions are clear, and client money are not misused.

Technical Requirements and Compliance with the Platform

In Argentina, gaming firms can only get licences after a mandated technical expert examination. Operators must only use approved software that meets national and international standards for the security of information, the stability of systems, the reliability of algorithms, and the openness of transactional data.

The standard technical requirements are:

1. An API or web interface that lets you talk to regulatory organizations in a safe way and obtain data from anywhere at any time.
2. The platform meets ISO/IEC 27001 or similar standards for information security.
3. It is required that a recognized lab certifies the RNG module (the report must be no older than six months).
4. Audit records for all operations, bets, and changes to coefficients, with timestamps and links to player IDs.
5. The platform must be available at least 99.8% of the time each month.
6. Protection against hacking, DDoS assaults, changes to your balance without your permission, and other dangers.
7. A user panel that shows betting history, deposits, bonuses, and settings for verification.
8. Integration with internal KYC modules and a client interaction log is required.
9. Providing system administrators with monitoring tools, including the ability to intervene manually.
10. The user interface must meet localization standards for language, currency, and responsible gambling.

It is very important to make sure that all software parts work together, that they don't depend on other solutions that haven't been verified, and that the code architecture is clear. All activities, calculations, and alerts made by users must be kept for at least five years.\

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AML/CFT and Compliance Controls

The provinces of Argentina all have the same rules for keeping an eye on money flows, where the money comes from, and who the participants are. Operators must set up a full compliance and internal monitoring system that follows worldwide FATF standards.

Some important requirements are:

• The appointment of an AML/FT compliance officer who is registered with the governing body.
• Putting in place a formalized Customer Identification Policy (KYC) that includes basic, enhanced, and periodic verification.
• Training essential staff in how to keep an eye on finances.
• All transactions over the equivalent of 15 minimum wages must be verified, and the source of the funds must be confirmed.
• Making signs of suspicious activities.
• Choosing a leader for the internal audit.
• Making a list of places with a lot of risk and ways to stop transactions from going through.
• Automating the process of dividing clients into risk groups and reviewing their status on a regular basis.
• Keeping all compliance-related documentation in a system that is easy to get to.
• Sending the regulator regular reports.

People consider compliance as a key part of the regulatory regime, not just a formality.

User Protection and Responsible Gambling

Regulators prioritize player protection and social responsibility. Every jurisdiction's licence criteria include Responsible Gambling (RG) rules.

Pretenders for the iGaming licence must not only show that RG features are technically possible, but they must also show that they have policies in place to protect users who are at risk.

Some parts of user protection and responsible gambling systems that are regulated are:

• Showing information on places where people with gambling problems can get help.
• Built-in tools to create individual deposit limitations.
• Notifications that happen automatically after 3 hours of continuous play, with the option to pause.
• A way for someone to choose to leave (for 1, 7, 30 days, or forever).
• Automatic session termination features for efforts to get around set limits.
• Blocking of promotional messages at the client's request.
• Warnings concerning the risks of too much interaction on the interface.
• Keeping track of each player's activity profiles.
• Filtering out ads and content that are aimed at kids and other vulnerable groups.
• Hiring a full-time RG officer.

The risk architecture includes the user protection system, which must be technically included into the platform. Verification happens before a licence is issued and continues while the business is running.

Licence Validity and Options for Renewal

In Argentina, the licencing system says that licences are only good for a certain amount of time and don't automatically renew. The period can be as long as 15 years in Córdoba, for instance. The operator loses the right to operate when the contract ends and must compete in a new tender.

Conditions for the validity and renewal of a licence:

• Licences are good for up to 15 years, but they don't automatically renew.
• Re-participation depends on following all the rules of the previous licence without any penalties.
• The regulator must be notified and the structure must be re-evaluated if there are any major modifications, such as changes in ownership, partners, or platform architecture.
• There are deadlines for submitting applications for new tenders, and existing or former licensees do not get any special treatment.
• If you want to change the amount of money you invest, the areas you invest in, or the way you market your business, you need to go through a separate process to get permission.
• If information is hidden or rules are broken, the licence may be taken away before it is supposed to be.
• If an operator doesn't re-tender or their application is turned down, they must stop doing business and make sure all users get their money back.

Strategic Things to Think About When Entering the Argentine Market

Argentina is a one-of-a-kind fragmented jurisdiction. Companies that want to get into the interactive gaming market need to think about more than just legislative restrictions.

They also need to think about differences in the economy in different regions, how tenders work, and how easy it is to get licences. In Argentina, you may only get a gambling licence if you work with a local company and are ready to meet the specific needs of each province.

Important things to think about while deciding how to enter a market:

To come up with a good plan for entering the iGaming business in Argentina, you need to have a deep understanding of its very fragmented and province-regulated environment. The first important step is to carefully look over the rules in each province.

Because each of Argentina's 23 provinces and the autonomous City of Buenos Aires makes its own rules, potential operators need to carefully look at how many licences are available, what the terms and validity periods are, and what financial guarantees are needed in the places they want to operate.

This deep dive stops people from wasting time and makes sure that everything is in line with the laws of each possible operating area. For example, some provinces may only give out a few licences through a competitive bidding procedure, while others may have distinct rules for renewing licences or various tax systems.

In addition to the legal details, a big strategic advantage is putting organizations with a real local presence at the top of the list. This means having both a physical office and devoted people in the province.

In Argentina, regulators often prefer entrepreneurs who show a real commitment to the local economy and community over those who only operate from afar. This local presence makes operations more efficient, makes sure that rules are followed, and helps us better understand how the local market works.

On the other hand, less developed but potential areas can have more open slots, which could be a good place for new operators to start if they want to grow in new markets. This means doing a lot of market research to find places where demand for iGaming services is booming but there aren't too many other companies in the same space yet.

Foreign companies often have trouble getting in, and market access usually favors models that include at least 15% of Argentine income. This requirement makes sure that local partners make a lot of money from the operation, which supports the province's goal of improving the economy.

The quality of the cooperation is really important. A legally sound and technically skilled local partner is not only a necessity of the law, but also a strategic advantage that helps you understand how local consumers act, deal with bureaucratic issues, and bridge cultural divides. Another important element is whether or not involvement is economically viable.

Companies need to show that they have a strong business plan that not only shows how they will make money, but also how their firm will assist the province socially and economically, like by creating jobs and paying taxes.

Also, businesses need to make sure that there is strong local infrastructure, such as local servers for storing data and dependable accounting services. This level of technical and logistical readiness is necessary for smooth operations and following data residency requirements.

You must meet the deadlines for submitting applications. Because licence tenders are so competitive, missing a deadline can mean you are automatically disqualified.

Lastly, operators who want to be successful in Argentina need to be very flexible when it comes to changing their interface, language localization, user scenarios, and Responsible Gambling (RG) policies so that they work for local players and follow the rules set by each province.

This ability to adapt to different cultures and rules is quite important for keeping players interested and coming back. Along with this, it is quite important to be able to quickly adapt to changes in the law.

The iGaming scene in Argentina is always changing, with new laws being debated and possible new rules coming out. To stay compliant and ahead of the competition, companies must keep an eye on things and be ready to adapt.

Summing up

Companies that want to get a gambling licence in Argentina need to be ready for a long, complicated process that is very different from province to province and has a lot of legal issues.

Before entering the market, you should do some basic legal research on the chosen jurisdiction, check to see if licences are available, and think about your business's long-term goals.

Because there aren't many licences available, there is a lot of competition, and local partners have an advantage, it's very necessary to check the legal structure, partnership model, and platform's compliance with regulatory requirements ahead of time.

If you start activities without following the rules, understanding what a joint venture needs, or contacting the regulator first, you will be turned down. The process of entering the market needs support from the system at every step, from registering the company for iGaming in Argentina to working with labs and government officials.