- Argentina’s proposed anti-gambling law will ban unregistered online platforms like Polymarket from operating within the country.
- The law introduces strict controls, including ad bans, biometric ID checks, and limits on payment methods to curb youth gambling addiction.
Argentina is on the verge of enacting stringent anti-gambling regulations that could have substantial repercussions for decentralized platforms like Polymarket.
This proposed legislation, recently approved by Argentina’s lower house, seeks to curb the rising trend of online gambling, especially among younger demographics, by implementing a regulatory framework that imposes new limitations on online betting and gaming platforms.
The primary goal is to control gambling addiction and secure a safer gambling environment, aligning with Argentina’s commitment to social responsibility in digital spaces.
The bill, now progressing to the full Chamber of Deputies, has garnered significant support. It has been shaped by a coalition of committees focused on addiction prevention, social welfare, communication, criminal law, and youth protection.
Key measures outlined in the legislation reveal a strong stance against unregulated gambling and emphasize restrictions that will limit the operation of online platforms to those registered within Argentina. For platforms like Polymarket, a decentralized online betting provider that operates without local registration, the bill signals an impending ban if it becomes law.
Key Provisions Targeting Gambling Addiction and Youth Protection
A standout provision in the bill is the sweeping prohibition on all forms of advertising, promotion, and sponsorship related to online gambling. Influencers, sports figures, and even stadium signage are now barred from endorsing or promoting these platforms, with the sole exception of advertising within physical gambling venues like casinos and racetracks.
This clause aims to reduce the exposure of gambling to the public, especially younger audiences, by curbing the extensive reach of gambling ads and ensuring that gambling activities remain more discreet.
Additionally, the bill mandates strict limitations on payment methods, restricting online gambling transactions to debit cards with capped spending limits equivalent to those on ATM withdrawals.
This rule prohibits the use of credit cards and social welfare funds for gambling purposes, thereby preventing individuals from incurring excessive debt or using government aid to fuel gambling activities.
Even cryptocurrency wallets and other digital payment systems will be subject to these spending limits, a regulation that reflects the government’s cautious approach to financial vulnerability associated with online gambling.
To address underage gambling, the bill requires platforms to implement biometric identity verification at the start of each gambling session. This verification process utilizes Argentina’s National Registry of Persons (RENAPER) to confirm players’ identities through facial recognition.
By enforcing such measures, the government aims to block access to minors, a group particularly susceptible to gambling addiction.
Platforms that fail to comply with these biometric checks or other regulatory mandates could face severe penalties, including fines and potential imprisonment, with sentences ranging from 3 to 10 years as stipulated by Article 301 of Argentina’s Penal Code.
For Polymarket, a decentralized prediction market platform that has seen rapid growth, these regulations are likely to pose significant operational challenges. As the platform is not registered in Argentina, it would be barred from providing services to Argentine residents under the new law.
Polymarket’s model, which hinges on decentralized finance (DeFi) principles, would be incompatible with the requirement for local registration and regulatory oversight, effectively preventing it from continuing to operate legally in Argentina.
The bill underscores the lawmakers’ commitment to both safeguarding citizens from addiction and maintaining a controlled environment for online gambling.
It mandates compliance with local standards to ensure that online betting services adhere to Argentina’s legal framework, thereby creating a more secure landscape for individuals engaging in such activities.
With a vote in the Chamber of Deputies scheduled, the bill will then proceed to the Senate, where it may be approved, amended, or rejected. If approved by both houses, it will be sent to the President for enactment and will take immediate effect once published as law.
