The city of Buenos Aires will welcome a new online gambling platform powered by Gaming Innovation Group (GiG) and Argentinean gaming and entertainment operator Grupo Slots.
Jugadon.bet Goes Live in Buenos Aires
The City of Buenos Aires Gambling Regulator LOTBA has approved Grupo Slots’ Jugadon.bet site to go live in the city. GiG’s technical iGaming platform, sportsbook, and front-end development, as well as its data platform and GiG Logic operating system, became available to Grupo Slots under a deal signed last August.
GiG’s Q4 revenue was up 38% year-on-year to €14.2 million ($ 17.25 million).
“The opportunity to implement our platform in the City of Buenos Aires, a fresh and dynamic market, is a challenge that marks a milestone for our companies. LOTBA is setting a great precedent for the strengthening of online gaming throughout the region and we are proud to be one of the early movers into the market.”Ben Clemes, Chief Commercial Officer at GiG
Juan Ignacio Torres, Grupo Slots General Manager highlighted the combination between the technology and strength of GiG’s platform with Grupo Slots’ deep knowledge of the local market. Ignacio Torres added that the provided opportunity gives Grupo Slots great satisfaction and motivation.
Argentina Makes Progress On Online Gambling Regulation
An increasing number of Argentina’s provinces are moving towards regulating online gambling. The trend in Latin America started when Colombia launched its online market in 2016. The industry has a great potential for growth and more Latin American jurisdictions are seeking to enter the market.
At the end of December, the Official Gazette of the province of Buenos Aires published the names of the seven companies granted a license to operate within the Buenos Aires Province. The new licensees are 888 Holdings, Bet365, Betsson, Intralot, Playtech, The Stars Group (Flutter Entertainment), and William Hill. They will cooperate with a local operator that is required to hold a minimum 15% stake in the business.
Gambling Tax Rate Rises in 2021
And although the sector is not regulated on a federal level in Argentina, the government passed a law imposing a higher online gambling tax in November 2020. The decision of the Argentine Chamber of Deputies increases the online gambling tax rate from 2% to 5% as of the current year.
Política Online estimates that the sector generates around $2.4 billion annually in Argentina. However, as the business is not subject to clear regulations, the state virtually does not take advantage of any contributions.
The government will attempt to identify mobile bets through bank and billing data, as well as through SIM cards or the IP address of the service recipient.