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The debate over online gambling regulation in Uruguay is heating up with the presentation of a new legal framework for the sector by the Uruguayan Chamber of Casino Operators and Service Lessees (Cuoasec). The proposal has been sent to the Ministry of Economy and Finance (MEF) and members of various political parties, but it has not yet been presented to Parliament.
The project states that online gambling has grown significantly in Uruguay without being regulated by a thorough legal framework for its functioning. There is a collective silence on the subject, which is “the worst thing that can happen” as online gambling is growing, said Cuoasec’s executive secretary Luis Gama, pointing to the lack of public discussion about the sector.
The proposal aims to create a lawful, transparent and state-supervised system, accompanied by mechanisms to safeguard users, enhance the traceability of transactions and boost the powers of the authorities to oversee the market.
Online Licenses Would be Linked to Physical Casinos
One of the main features of the proposal would be that online gambling would only be allowed to businesses that have a license for brick-and-mortar casinos. This model would help to more readily identify operators and subject them to current regulations, Cuoasec said.
The draft also defines the principle that gambling is illegal unless it is explicitly provided for by the state via direct operation, concessions, tenders or other regulated means. For operators carrying out investments, a specific regime would apply, but would be subject to authorization, which would be subject to the condition of the proper start of a physical gambling operation.
The project also advocates for the use of only the bet.uy domain name to establish legal online gambling operators. The chamber claims this would help consumers better identify regulated platforms from illegal ones.
Responsible Gambling and Anti-illegal Measures
Another key aspect of the proposed framework is consumer protection. Among the provisions in the draft are self-exclusion systems, measures to prevent minors from playing gambling services, and transparency requirements regarding the information that is given to users.
Cuoasec is also strongly advocating for the creation of a gambling addiction prevention and treatment fund, funded by the proceeds of the regulated industry. The expansion of unregulated gambling is a serious issue, and if no one speaks up about it, then it would appear to be nonexistent, Gama said. “The illegality is enormous; there is no control. Young people are not doing well with online gambling; it seems that if nobody talks about it, it is as if it did not exist.”
To come up with the idea, the chamber drew on the expertise of in-person casino operators that are already successful online in other Latin American countries. It also explored the legal provisions of other jurisdictions and previous legislative initiatives on online gambling in Uruguay.
Political Discussions are Already Underway
The bill is not yet in the legislative process, but Cuoasec has initiated dialogue with the political leaders. The chamber has reached out to the Frente Amplio leader Fernando Pereira, Cabildo Abierto’s command Guido Manini Ríos, Party Independiente’s representative Pablo Mieres and Colorado Party senator Pedro Bordaberry, Gama added.
The proposal is also being analyzed by the executive branch, in this case, the MEF’s General Directorate of Casinos. Cuoasec wants to rebuild the political conversation and help bring the conversation around to include sports as well as casino games.
Gama opposed the limitation imposed on online licenses based on the need for effective supervision to know exactly who’s operating. “First you need to know who you’re controlling, and which companies you allow to run online gambling for you,” he said.
A Competing State-led Model
Cuoasec’s proposal is not the only one pushing for online gambling to be regulated in Uruguay. A state-sponsored online gambling platform and a National Regulatory Agency to oversee the market, monitor transactions, maintain a national register of players and license operators were previously proposed by Senator Felipe Carballo.
Both proposals discussed the necessity of reform of Uruguay’s legislation to address the growing digital gambling market. They have, however, many fundamental differences in their views of the role of private operators and the state in the regulation of the online market. The rival measures may be a significant factor in Uruguay’s regulatory discourse as policymakers make decisions on consumer protection and the expansion of digital gambling.
Source: SBC Noticias
