Uruguay is located in southeastern part of South America; on its north it borders with Brazil; on its west – Argentina. The country has natural resources, and also has adequate legal requirements for Betting Sites in Uruguay and sports betting. In this article, the reader will get to know about the legal framework of gambling in Uruguay; the history of legislation and regulating bodies, types of licenses, fees, taxes and what kind of bets are restricted or permitted.
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History of Gambling Legislation in Uruguay
Betting and gaming has been in practice in Uruguay for a long time and as people have learned, the laws change to adapt to the current methods. Here is a timeline of significant legislative milestones:
- 1819: This is because the Uruguay lottery is established, which is noted to mark the beginning of the legal gambling in the country.
- 1856: The second product that was to be legalised as gambling was sports betting after the success of the lottery.
- 1882: The first legislation on gambling is enacted leading to the formation of state and private owned casinos.
- 2002: National Lottery Network is allowed to offer internet services inclusive of lottery ticket and sports lottery.
- 2005: The Montevideo Racing Company allowed to provide a remote sports betting service, which led to the creation of Supermatch.
- 2016: The Act for Gambling Games is the main and primary law that regulates games of chance in the country of Uruguay.
- 2017: Online gambling is unlawful under Article 244 of Law 19,535, but the law permits sports betting through an exclusive government monopoly.
- 2018: Launch of the Supermatch, the only licensed online sportsbook based in Uruguay.
- 2021: An introduced bill on the legalization of online gambling is still pending in the Chamber of Deputies after passing through the Senate.
- 2022: Senate passing of an Online Gambling Bill that will help in the formulation of laws to regulate online gambling.
Regulatory Agencies and Responsibilities
The regulatory framework for gambling in Uruguay is managed by several key agencies:
- National Directorate for Inspection of Betting & Gambling Games: In the United Kingdom, the Gambling Commission is the main regulatory body that is responsible for issuing licenses for gambling facilities.
- General Directorate for Casinos (DGC): Responsible for the supervision of the licensing of land based casinos and gambling establishments.
- National Directorate of Lotteries and Quinielas (DNLQ): Oversees retail sports betting concessions and the Rhode Island state lottery.
- Ministry of Economy and Finance: Regulates and issues licenses for remote sports betting and manages the taxation of it.
Gambling Law and Regulation in Uruguay – 5 Things to Know
Licenses and Fees of Betting Sites in Uruguay
The licenses available in Uruguay are again mainly for land based gambling operations and the following are the types of licenses that are available in Uruguay. These include:
- Casino Concession Agreements: Permits for conducting casinos which are to be combined with hotels and can be placed only in zones established as tourism ones.
- Retail Sports Betting Concessions: Received from the DNLQ for the running of state-owned betting agencies.
- Online Sports Betting License: Received by La Banca for running the only licensed Internet sports betting site, Supermatch.
Fees and Taxes
Gambling operations in Uruguay are subject to various fees and taxes:Gambling operations in Uruguay are subject to various fees and taxes:
- Casino License Fees: Depending on the size and location of the casino.
- Sports Betting License Fees: Specific to the type of betting operation it is proposed that the following measures be taken.
- Gambling Tax: A 0. These are 75% tax on total turnover of gambling for state-licensed operators such as casinos, gaming halls, racetracks, and shops offering sports betting.
- Income Tax on Prizes: According to the Impuesto a la Renta de las Personas Físicas laws, prizes that are 71 times lower than the bet amount are free from taxation.
Prohibited and Permitted Bets of Betting Sites in Uruguay
Permitted Bets
- Lottery: Legal since 1819, but it allows offline and online sales.
- Sports Betting: This is legal and regulated with the only legal website for online betting being La Banca’s Supermatch.
- Land-Based Casino Games: Permitted in areas designated for tourism and must be affiliated to hotels.
- Horse Racing: Legal and includes online betting through the National Maronas Race Track.
Prohibited Bets
- Online Casino Games: Some of the games that are banned by Article 244 of Law 19,535 include poker, roulette, and slots.
- Unlicensed Online Gambling: All other forms of online gambling, not run by La Banca or approved by the state, are prohibited.
The growth of internet gambling in the next decade in Uruguay
Today the issue of legalization of online gambling in Uruguay remains rather contentious. The bill was filed in November 2021 and is currently in the Chamber of Deputies; it could considerably alter the situation if approved. The bill aims to:
- Online gambling should be made legal through state and private operators who possess licenses to in-person casinos.
- Set up the licensing conditions and the players’ safeguards.
- The last recommendation is to dedicate resources for the promotion of safe gambling practices.
Uruguayan Congress will reopen this debate in March 2023 after the break that has been for two years. The passing of this legislation would be a major step in attaining a legal and properly controlled online gambling industry in Uruguay.
Conclusion
To sum up, Uruguay has relatively strong legal conditions for gambling as it has legalized and controlled different types of betting for many years. Online gambling, on the other hand, remains largely illegal; however, the continuous legal processes indicate that change is around the corner. For now, only those operating online casinos and sports betting services with a focus on land-based casinos and state-monopoly sports betting can continue to do so in a safe and controlled manner.
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