Key Moments:
- Senator Felipe Carballo has proposed a bill introducing a mixed state-private model for iGaming regulation.
- The legislation would establish a National Online Gambling Regulation Agency with centralized oversight.
- Medical data reports approximately 35,000 Uruguayans currently suffer from gambling addiction.
New Model Targets Expanding Online Gambling Market
A proposed bill has reignited the debate over how Uruguay should oversee its online gambling sector, as lawmakers confront concerns about public health and rapid industry development. The initiative, led by Senator Felipe Carballo, calls for the creation of a central state-run iGaming platform while permitting authorized private operators to participate under stringent regulatory conditions. The objective is to bolster government control, address mounting health issues, and respond to the proliferation of international gambling services.
State Platform at the Core of the Proposal
The envisioned regulatory scheme places a State Online Gaming Platform, managed by the National Directorate of Lotteries and Quinielas, at the center of Uruguay’s digital gambling environment. The framework permits licensed private firms to participate, but only within a system heavily regulated by technical, fiscal, and public-health guidelines. According to Carballo, this “mixed model” would replace the current situation, where Supermatch – operated by La Banca – is the sole approved online sports betting platform. Carballo has described this arrangement as a “de facto private monopoly” and stresses the limited state participation in profit distribution when compared to traditional lottery offerings, which support health, education, sports, and social initiatives.
Centralized Regulator Would Streamline Oversight
A significant feature of the bill is the establishment of a National Online Gambling Regulation Agency. This new body would consolidate responsibilities now held by the Casino Directorate, the National Lottery authority, and Ursec, the telecommunications regulator. Its duties would include issuing licenses, auditing gaming platforms, scrutinizing algorithms, overseeing financial operations, and implementing advertising rules.
The bill stipulates the creation of a National Digital Bettors Registry, requiring all online gamblers to enroll. This registry would monitor players’ financial transactions and allow individuals to set spending caps. Additionally, operating an online gambling service without government authorization would be deemed a criminal offense.
Public Health Data Sparks Legislative Action
Senator Carballo has stressed the need for urgent regulatory reform, pointing to the challenges digital platforms, cryptocurrencies, and VPN use pose for state oversight and taxation. He referenced data from the University of the Republic’s School of Medicine, which has identified roughly 35,000 individuals in Uruguay with gambling addiction, alongside a Fundación Manantiales survey reporting that one in four adolescents places bets daily. In Carballo’s words,
“These figures highlight the urgency of a modern regulatory framework that allows the state to regain its central role in protecting citizens, preventing gambling addiction, and promoting responsible gambling habits.”
Implications for Industry Operators
The planned mixed-market approach opens the door for private operators, but with significant compliance obligations. Firms would need to conform to strict protocols on marketing, technical system monitoring, financial accountability, and player protection tools. All digital gambling operations would pass through the state platform, preventing independent activity by private companies. Such measures may foster opportunities for technology providers specializing in regulatory compliance, payment verification, and risk monitoring.
| Current Operator | Licensing Status | Market Structure |
|---|---|---|
| Supermatch (La Banca) | Concession | Private Monopoly |
| State Online Gaming Platform (proposed) | License to Private Firms | Mixed State-Private |
Political Path Forward
Moving ahead, the proposal’s fate will determine whether Uruguay undertakes its most significant change yet in online gambling regulation. The outcome will influence the responsibilities of market operators, the government’s capacity for oversight, and how digital gambling revenue is monitored and taxed. Uncertainty remains regarding potential legislative inaction as the nation’s online gambling sector continues to grow without unified supervision.
- Author
Daniel Williams
