More than three years have passed since Uruguay legalized online gambling with a bill that opened the market, yet the sector remains largely unregulated. Now, a new proposal from the ruling Frente Amplio party seeks to address this by introducing a state-run model. Senator Felipe Carballo has tabled a legislative proposal which would see the state directly operating an online gambling platform, contrasting with an earlier vision of a more open and regulated market.
Carballo’s proposal suggests the creation of a mixed model where the state would play a central role. The platform would be managed by the National Directorate of Lotteries and Pools (DNLQ), thereby centralizing control and oversight of online gambling activities. If the law is approved, it would not only establish a state-run platform but also create the National Online Gambling Regulatory Agency. This agency, functioning as a non-state public entity, would absorb the powers currently divided among several bodies like the General Directorate of Casinos and URSEC.
The responsibilities of this new agency would be broad. It would be tasked with granting licenses to private operators, overseeing platforms and transactions, regulating advertising, and coordinating public health and digital education initiatives. Additionally, the agency would have the authority to impose sanctions and revoke licenses, ensuring comprehensive regulatory oversight. The creation of a National Digital Registry of Gamblers is also proposed, intended to ensure financial traceability and set configurable spending limits.
Part of the proposal is also to curb unauthorized gambling activities. This would involve criminalizing the unlicensed operation of online gambling for profit. Moreover, a National Fund for the Prevention and Treatment of Gambling Addiction would be established to support research, education, and treatment related to gambling addiction.
Currently, Uruguay’s legal online gambling market is limited to one company: Supermatch, operated under concession from La Banca. Carballo, quoted by The Observer, emphasized the challenges posed by the rise of transnational platforms and the use of cryptocurrencies and VPNs, which he warned have diminished the state’s ability to regulate effectively. If left unchecked, Carballo argued, this could lead to significant economic, health, and social repercussions.
While the DNLQ is officially tasked with regulation, its primary tool is the blocking of unauthorized international betting sites. Carballo criticized the current situation as having created a de facto private monopoly, where the state fails to derive direct benefits from the online gambling sector. He notes that La Banca’s products, such as the Quiniela, the Tómbola, and 5 de Oro, already dominate the market, while state activities remain confined to lotteries that fund health, education, sports, and social security.
The previous administration had introduced a bill in 2021, which the Frente Amplio initially supported. This bill authorized the government, specifically through the General Directorate of Casinos of the Ministry of Economy and Finance, to offer casino games like poker, roulette, and slots online. The Executive Branch was granted the authority to provide provisional and revocable authorizations for these activities, which could be issued to existing casino operators or potential new entrants.
The current president, Yamandú Orsi, is expected to have significant input on the final shape of Carballo’s proposal. Orsi’s approach has been cautious, advocating for gradual reforms to avoid potential pitfalls.
However, not everyone supports the idea of a state-run model. Critics argue that such an approach could stifle competition and innovation within the industry. They suggest that a more open market with strict regulatory oversight could achieve the intended goals without the state having to take on an operational role. Their concern is that a state-operated platform might struggle to keep pace with the dynamic and rapidly evolving digital gambling landscape.
Despite these differing opinions, the push for a regulated framework reflects a broader trend in the region. Countries are increasingly recognizing the economic potential of online gambling while being mindful of the associated risks. Uruguay’s move could set a precedent for other nations considering similar regulatory measures.
As the debate unfolds, stakeholders will be keenly observing how Uruguay balances state control with market openness. The outcome could reshape the future of online gambling in the country, potentially influencing regional strategies as well. For now, all eyes are on the legislative process and the role that President Orsi will play in it. Whether or not the proposal is approved, the conversation about how best to regulate online gambling in Uruguay is likely to continue for some time.
David Harrison stands tall in gambling journalism, marrying his firsthand casino experiences with a deep understanding of betting psychology. His articles transform complex gambling jargon into engaging tales of strategy and chance, making the world of betting accessible and enjoyable. David’s knack for narrative extends beyond print, making him a sought-after speaker on gambling trends and future bets. In the realm of gambling, David is both a scholar and a storyteller, captivating readers and listeners alike.
