Buenos Aires Province weighs 'Lula Law' online gambling ban modeled on Brazil's measure

Buenos Aires Province in Argentina is reportedly considering a prohibition on online gambling that follows the example of Brazil's Provisional Measure 1,394. The initiative, nicknamed the "Lula Law," was put forward by Senator Federico Fagioli and takes its name from Brazilian President Luiz Inácio Lula da Silva, whose government imposed the Brazilian ban.

The proposal's authors argue that the convenience of online gaming has removed traditional barriers to play and exposed customers to a significant risk of harm. If it is approved, operators would no longer be allowed to offer online casino games and sports betting in the province. Online lotteries and prize draws would not be affected.

The Brazilian measure marked an abrupt reversal in that country's policy, ending its online gaming sector less than two years after launch. The industry reacted negatively, given the considerable investment stakeholders had made in the market. Lula's recent re-election makes it very likely that the ban will remain in place.

The future of the Buenos Aires proposal is uncertain, but legal experts say it should be taken seriously. Speaking to the outlet NEXT.io, Tomás García Botta, a partner at MF Estudio Abogados, said the law "could indeed be introduced." He added that he does not fully understand what it aims to achieve. He also warned that it could face constitutional challenges.

García Botta further argued that prohibiting the legal online industry would encourage growth in illegal online gambling. In his view, lawmakers should concentrate on stopping unlicensed operators rather than banning regulated ones.

Separately, legislators in the province are developing a different proposal aimed at illegal gambling. It merges 27 bills on safer gaming and would introduce strict biometric checks and new advertising restrictions. The draft also covers further ID verification, mandatory safer gambling and self-exclusion tools, and the creation of a dedicated illegal gambling office, among other measures.