One of South America's largest economies has announced its intentions to open its doors to online gambling operators.
And surprise surprise, one of the reasons given for the move toward regulated and licensed online gambling has been that it will help bolster the government's fiscal accounts. Some commentators have speculated funds raised will be applied to the governments recently purchased rights to broadcast local football matches.
In a deal announced just weeks ago, the Argentine government agreed to pay the Argentine Football Association 600 million pesos a year for the right to broadcast games on its public free to air channel. This is almost twice what the incumbent licensee cable network pays for the rights and will create a material hole in the Cristina Fernandez government accounts.
While neither confirming or denying that gambling revenues will be used to fund the $150 million in soccer broadcasting costs, Cabinet Chief Anibal Fernandez would only say "That's another subject." The official government line is that the new laws will be brought in to combat illicit gambling that's happening anyway.
What is clear, is that there appears to be a push to fast track the new laws. "We're working so that this will become law within two or three months," the Cabinet Chief announced at press conference yesterday.
Few details were disclosed about the proposed new laws, or gambling tax rates that will be applied to operators. Given the time frame that they are working with it would seem that a public/industry consultation process will not be undertaken.
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