Amid Economic Strife Argentina Restricts Gaming Exchange
Published November 7, 2019 by Lee R
A $50 limit on gaming transactions across the board slows development of Argentina's iGaming regulation.
Argentina has put in some very specific restrictions on gaming transactions, which Argentinian players might find stringent.
The Limit
The Central Bank of the Argentine Republic (BCRA) has imposed a $50 limit on a number of different types of credit card transactions being carried out overseas, including all gambling and betting activity.
The Logic
The move is designed to protect the peso against further falls in its value from the practice of accessing more foreign currency.
End of “Casino Dollars”
This stifles a means of foreign exchange circumvention which Argentinians were relying on through casinos--the “casino dollar” maneuver where Argentinians purchased chips in online international casinos before trading them in for dollars without limit.
New Political Landscape
New leadership has stoked the changes, with Argentina's economic struggles accentuated by the over
£20 billion wiped off its currency value. The resulting surge in dollar acquisition has rapidly depleted the country's foreign currency reserves, while dropping the value of the peso against the dollar from 0.027 to 0.017.
Liberal newcomer Peronist Albert Fernandez was voted in, which devalued the peso as well, due to market fears about the policies he would introduce.
Full Extent of Restrictions
Against the backdrop of avoiding a total economic collapse, the Argentinian government has introduced the restrictions, which also prohibit local currency being transferred to Paypal or other payment services for more than $50, with cryptocurrencies and foreign exchange transactions subject to the same limit.
Buenos Aires Regulation Slows
The new regime also slows the development of regulation in Argentina, with incumbent governor María Eugenia Vidal being defeated in Buenos Aires, where seven online gambling licenses were to be issued.
Uncertain Future
As of December 10th, the future of the online gambling licensing program will fall into the hands of Axel Kicillof, whose stand on gaming remains unclear. Understandably, Argentina is more concerned about its overall economic woes than iGaming regulation, but as we have seen in the past, an effective regulation model has provided no small amount of relief to struggling national economies of scale.
