Argentina’s Central Bank has introduced new economic policies, which will include gambling-related restrictions for citizens using their card. One of the largest implications is that cardholders can no longer complete certain actions outside of the country.
Gambling restrictions: the full picture
The ability for Argentinians to use their card for gambling elsewhere caused the “casino dollar” effect to become more prominent. This process involved players buying chips abroad, before exchanging for US Dollars.
Doing the above ensured that foreign currency was purchased at the official rate. A growing number of people travelled to nearby countries to do this, before selling them on the local black market at a higher price.
Following the Central Bank’s policy changes, cardholders are no longer allowed to buy chips abroad. Transaction restrictions also apply to online gambling, meaning that players in this country have fewer options than before. Affiliates with Argentine visitors, who visit foreign gambling sites, might therefore have their traffic affected.
In addition to the gambling restrictions, a new $50 limit has been imposed on Argentine individuals visiting other countries. Before entering the foreign exchange market, local card issues must also receive prior approval.
Cryptocurrency purchases will also need to be accepted, while payments service providers like PayPal are also affected by these changes. All-in-all, card issuers are required to block five specific transaction types – two of which are related to gambling in other countries.
Online gambling in Argentina has stalled in some parts of the country. Last month’s elections saw the province of Buenos Aires’ governor, María Eugenia Vidal, defeated. There were plans to issue seven iGaming licences in this part of the country. She’ll be in office until 10th December, but it’s hard to say how things will materialise if nothing happens before then.
Foreign exchange reserves in Argentina are also dwindling. After the primary elections this summer, the peso also devalued by double digits. After last month’s presidential vote, it looked like there could be an even greater currency decline.