TLDR
- Uruguayan Senator Felipe Carballo has introduced a bill to regulate online gambling through a state-supervised platform
- The bill would create a National Online Gambling Regulatory Agency with power to grant licenses and audit platforms
- Users would need to register on official platforms with spending limits and financial transaction tracking
- Previous attempts to regulate online gambling failed due to opposition from powerful private gaming operators
- Over 150 illegal international gaming websites are reportedly blocked daily in Uruguay
Uruguay is taking a fresh run at regulating its online gambling market. Senator Felipe Carballo has introduced a bill that would bring online betting under state control for the first time.
The bill calls for a State Online Gaming Platform to be created. It would fall under the supervision of the Dirección Nacional de Loterías y Quinielas, the country’s existing lottery authority.
A new National Online Gambling Regulatory Agency would also be established. This independent body would have the authority to grant licenses, audit platforms and algorithms, and monitor financial transactions.
The agency would also manage a national register of digital gamblers. Online users would be required to register on official platforms with individual spending limits in place.
Operating without a license would become a criminal offense under the proposed law.
Why Past Regulation Efforts Fell Short
This is not the first time Uruguay has tried to regulate online gambling. Carballo told Uruguayan outlet El Telégrafo that previous efforts from his own party, Frente Amplio, and from the executive branch all failed.
He blamed the failures on opposition from powerful economic interests. The private gaming sector currently holds monopoly concessions over certain gambling activities in the country.
“The proposals failed because we touched very large interests,” Carballo said. He pointed to private banking operators that hold monopolies on games in Uruguay as a key example.
The senator argued that technology has outpaced the law. He said anyone with a cellphone, internet access, and a credit card can now place bets online without any oversight.
That lack of regulation has created real social problems, according to Carballo. He pointed to growing mental health concerns linked to gambling and the number of minors accessing betting platforms.
“There are difficulties in the population from a mental health perspective and a lack of controls due to the number of minors who are betting,” he said.
The Scale of Illegal Gambling in Uruguay
The scope of illegal online gambling in Uruguay is large. Carballo said more than 150 new illegal international gaming websites are blocked every single day.
He argued that the state, as the legal owner of gambling activities, should be receiving more economic benefits from the industry. Right now, contributions come only from the National Directorate of Lotteries and Quinielas.
Under his proposal, private operators granted concessions would be required to contribute more. That money could then be directed toward addressing the social problems gambling creates.
Carballo also stressed that Uruguay’s gambling laws are badly outdated. Much of the legislation currently in use dates back to the 19th century.
The senator wants the issue debated in parliament this year. He described his bill as a starting point rather than a final product.
“Uruguay must open a new discussion about online gambling and legislate to strengthen controls and bring more resources to the state,” Carballo said.
