Call for Online Gaming Licenses in the City of Buenos Aires.

On February 20, 2020, the Lottery of the City of Buenos Aires (“LOTBA”) issued a Board of Directors’ Resolution No. 15/2020 (the “Resolution”). Through the Resolution, LOTBA calls for applicants to obtain an online gaming license for the commercialization and / or distribution and / or sale of online games in the territory of the City of Buenos Aires, for the term of 5 years, through online gaming platforms and / or applications for mobile devices (the "Call").

The Call is related to the following online games: (i) gambling and/or skill games; (ii) sports betting; (iii) virtual gaming bets; and (iv) betting on non-sporting events made through the use of machines, instruments or media, of any kind or technology (the "Online Games"). Likewise, the Call states that the online Lottery Games are exempted from the Call, which does neither include the authorization for the use and operation of physical terminals in public, semi-public or private premises of any kind.

LOTBA will grant an “Online Games Agency” license, which may be renewable, and cannot be assigned or transferred. Applicants for the Call must pay an administrative fee of USD 30,000 (thirty thousand US dollars).

According to the Call, duly incorporated local or foreign companies may be owners of an Online Games Agency license. Also these must have a demonstrable minimum experience of 2 (two) years in the development of its activity, with total sales revenue exceeding ARS 100,000,000 (one hundred million pesos) and a net worth of at least USD 25,000,000 (twenty-five million US dollars), demonstrable to the last balance sheet.

Regarding the procedure to obtain the Online Games Agency license, the Call states that the applicants who paid the administrative fee must submit the application through the LOTBA online Self-Management Platform, together with corporate documentation, affidavits and tax and accounting records, besides a preliminary technical project certification report, an operational plan for the commercialization and / or distribution and / or sale of online games, an initial implementation project and an implementation plan for the computer platform, to obtain the Final Certification Report (prior to obtaining the license).

Additionally, the applicants must pay LOTBA a fixed annual fee equivalent to USD 100,000 (one hundred thousand US dollars) and must grant an initial guarantee of USD 2,000,000 (two million US dollars) in favor of LOTBA. The applicants also must also maintain the funds from the user account balances in an account from Banco Ciudad de Buenos Aires, which will be managed by LOTBA.