Wire SOUTH AMERICA
Under the licensing process Argentine and foreign companies may work together to operate online gambling.
ARGENTINA LEGISLATION Trouble Ahead for Online in Córdoba
Online gambling regulation could hit a potential roadblock in Córdoba over the capital’s refusal to allow online gambling within the city limits.
Brazil - Senate moves to pass gambling bill Brazilian senators want to vote this year on the bill to legalise gambling in Brazil, (PL 442/1991) in order to remove the responsibility of President-elect Lula da Silva so that he doesn’t have to publically decide on the controversial issue. The project was approved in the Chamber of Deputies in February and since then has been languishing in the senate.
The expectation is that, in the Senate, the text will be put forward by the former president of the Chamber, Davi Alcolumbre, who currently heads the Constitution and Justice Commission. Several groups of senators speculate that the vote, this year, would damage the administration of Bolsonaro. As President Luiz Inácio Lula da Silva would not have to deal with the controversy of voting for a text that is unpopular amongst a large section of the population, especially evangelicals, his administration would gain the additional tax revenue to spend while not paying the political cost.
Despite the intention to schedule the project for this year, a number of senators want the sports betting bill to be given final approval first which would be seen as a step before the legalisation of a wider gambling bill. The government of President Jair Bolsonaro has until December 12 of this year to finalize the process of regulating sports betting in Brazil, according to the law enacted by then President Michel Temer on December 12, 2018. Law number 13,756 requires the Ministry of Finance (currently the Ministry of Economy) to promote the regulation of sports betting within a time limit of four years. The bill seeks to raise additional income for the government by green lighting sports betting and gave the Ministry of Finance initially just two years to get sports betting up and running (although this could be extended for a further two).
Mexico - Nuevo León casinos face higher taxes The government of Nuevo León sent a partial version of the Fiscal Package for 2023 to the state congress. Amongst the proposed changes is an increased tax hike on casinos from 10 to 15 per cent. The tax increases are part of a wider package of hikes including increases for transport, alcoholic beverages and new ecological taxes. Gambling revenue for the state has increased significantly reaching 537 million pesos during the first six months of the year far more when compared to the same period last year.
According to local government figures, that’s 119 per cent higher than in the first half of last year with the industry recovering to the pre-pandemic period.
The state collected $372m (US$18.2m). This represents $127m (US$6.3m) more than in the first six months of 2021. However, to this is also added a new tax, which went into effect this year.
P8 WIRE / PULSE / INSIGHT / REPORTS
Online gambling regulation could hit a potential roadblock in Córdoba over the capital’s refusal to allow online gambling within the city limits.
Te government passed rules that give online casinos and sports betting the green light in May. In September the province preselected eight companies to operate online gaming. Both Argentine and foreign companies were invited to take part in the tender while Te Córdoba Lottery will oversee online gaming. Online gambling was supposed to be underway before the World Cup.
However, city ordinance 11,684 rules that gambling is illegal in the city limits. As a result the Municipality of Córdoba has emphasised that municipal regulations prevent online gambling from going forward, although they did not give further details nor issued any statements on the matter when consulted by local press.
“Nothing is changed in the city, because there is already an ordinance that prohibits gambling and it was extended in 2017 to also prohibit electronic games,” municipal sources told the Córdoba newspaper, La Voz del Interior.
In addition, councillors had requested information on whether the Municipality of
Chile Delay likely for online gambling bill
Delays for Chile’s online gambling bill passing through the lower house look likely as lawmakers wait to hear from the executive over wider tax reform proposals.
Te Economy Commission of the Chamber of Deputies was expected to deal with the bill put forward by lawmakers in August. Te legislative initiative, was presented by the previous government, and stated that among its main points, operators would remain under the supervision of a new regulatory board with specific taxes of 20 percent on gross income imposed on operators, 15 per cent on users and licence fees for both general and special licenses.
According to estimates, the bill
could generate around US$50m a year. Te Minister of Finance, Mario Marcel, stated that before processing the online gaming law, it was necessary to make changes to the initiative. Te purpose of the bill is to give lawmakers more time so that it could be considered within the next tax reform bill, which isn’t scheduled until the end of March 2023.
According to the undersecretary of Finance, Claudia Sanhueza, the pause in the debate would allow the bill to be examined in depth. Te government is to address the content of the project put forward by the previous administration so that the treatment of crimes related to online gaming activity can also be covered as part of wider laws facilitating oversight.
Córdoba had been in contact with the lottery regarding the issue.
According to local councillor, Juan Pablo Quinteros, the municipality had, after several delays, formally presented a note reminding the Córdoba Lottery of the validity of the prohibition established by ordinance 11,684 which would ban online gambling within the city limits. Tis would be the first formal claim made to the lottery regarding the matter.
“Although with a lot of delay, and at the request of our incessant claims that include presentations in the Deliberative Council, in the Judiciary and even in the municipality through notification by a public notary, it is striking that despite the notification made by the Municipality, the Córdoba-Lottery of the Province continues with the process of implementing online gaming as if nothing happened and in complete ignorance of municipal autonomy. For the first time the municipality has executed an action before the Lottery. Clearly late and as a reaction to our request, but it establishes a position that leaves no doubt,” he said
Under the licensing process Argentine and foreign companies may work together to operate online gambling.
Puerto Rico
Te Puerto Rico Gaming Commission has given seven companies the green light to expand the current sports betting offer, according to the interim executive director of the agency, Jaime Rivera Emmanuelli. Te Commission approved the recommendation to grant licences to three operating companies and another four service providers. Five of them are temporary licences according to the official. Te authorisation was granted after an evaluation of the profile, trajectory, compliance with tax responsibilities and financial statements of the applicants, as well as the technical and financial capacities of the companies and their shareholders and main officers. Under current rules only land- based sports betting is permitted currently in Puerto Rico.
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