New Regulation of Digital Games of Chance in the Province of Entre Ríos

On October 19, 2018, the Institute of Financial Aid to Social Action ("IAFAS"), an agency that has exclusivity in the administration and regulation of gambling in the Province of Entre Ríos, issued Resolution No. 1033, which approved the Regulation of Games of Chance and activities that originate bets made through games based on digital platforms operating in or from the province of Entre Ríos, and all online games that infringe said Resolution are considered to be clandestine. It also establishes that the bets made should be circumscribed to the territory of the Province of Entre Rios - even when the capture systems used to develop the games are in other jurisdictions.

The Regulation prohibits advertising, gambling or commercializing this type of games without the express authorization of the IAFAS “in the framework set by Law No. 8,703 by which the practice, diffusion, facilitation or participation in Games of Chance is prohibited in the Province of Entre Ríos, except those that are officially exploited by the Provincial Government, by itself or by duly authorized third parties (the "Operators")“-.

Thus, "system of games based on Digital Platforms" is defined as those in which the bet and the result thereof are managed only by that means, after registration of the player in the authorized portal and whose mechanics are supported in a generator virtual random or in the occurrence of real events whose results are not controlled –“games that involve physical draws, such as betting, lottery, etc. are not included”.

It also obliges the Operators to comply with certain requirements, among which the following stand out:

- Certify the process of development and recruitment through regulations of international standards that define in regulation to be dictated by the IAFAS.

- Ensure a level of operation that corresponds to the level of reliability that a computer center should have according to the characteristics of the business.

- Regarding the players, it prohibits the Operators from allowing a person to participate as a player in their bets unless they are duly registered as a player and the Operator / administrator must provide the player with means of verification of their identity (such as username and password) and the existence of more than one account per player will not be allowed. In addition, the player must be shown and require the reading and acceptance of the commercial terms and conditions that must be approved by the IAFAS in order to participate, which will stipulate the way in which the Operator may charge or debit credits in the accounts and means of control that the player will have to verify the legitimacy of the same.

It also requires the Operators to ensure the protection of the data with respect to the information obtained in the players' registry.