LATIN AMERICA
Do cryptocurrencies represent an opportunity for online gaming in Argentina? AGUSTÍN DÍAZ FUNES SUGGESTS THAT CRYPTO COULD BE THE WAY TO TAME THE ILLEGAL MARKET
Introduction Online gaming in Argentina faces a hard truth: according to a recent study, illegal operators have an 80 percent 1 share of the market. Despite great efforts made throughout the country by the different local regulatory authorities, illegal businesses are booming while stringent regulation is imposed on the few legal operators. While the cause may be attributed to many factors – from economic factors to complex institutional structures or even the lack of awareness from players themselves as to the illegal nature of the operations they are playing with – one key element remains: illegal operators make use of intricate networks that obfuscate any possibility of funds being traced. This lack of traceability of funds could open an interesting
opportunity for a technology that allows for full transparency and traceability. A technology such as cryptocurrency. In this article, we will take a closer look at the legal gaming industry in Argentina, both from an institutional and operational perspective. We will also examine the structure of illegal operations and discuss the current legal status of cryptocurrencies in Argentina. Finally, we will explore how cryptocurrencies may provide an opportunity to combat illegal gaming activities. Argentina is a complex country. It has the eighth-largest land mass in the world but is one of the least densely populated. Almost half of the economically active population (42.2 percent) works in the unregistered sector 2 . In the last two decades, inflation has been steadily rising – according to the Central Bank of Argentina, it is forecasted that the country will close 2023 with
1 https://tn.com.ar/sociedad/2023/07/07/casinos-virtuales-y-apuestas-clandestinas-como-es-el-peligroso-sistema-de-juego-ilegal-que-crece-en- redes/ 2 https://www.infobae.com/economia/2023/07/14/en-el-ultimo-ano-el-trabajo-en-negro-crecio-mucho-mas-que-el-registrado-que-sectores-con-
IMGL MAGAZINE | OCTOBER 2023
PAGE 42
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