Uruguay’s debate over online gambling regulation is gaining momentum as the Uruguayan Chamber of Casino Operators and Service Lessees (Cuoasec) proposes a new legal framework for the growing digital gambling market.
The proposal has been submitted to the Ministry of Economy and Finance (MEF) and representatives from several political parties, although it has not yet reached Parliament. Cuoasec executive secretary Luis Gama warned that the lack of regulation and public discussion is becoming increasingly difficult to ignore as online gambling expands.
Online Licenses Linked to Physical Casinos
A central element of the proposal is to restrict online gambling licenses to businesses that already hold licenses for land-based casinos. Cuoasec argues that this approach would make operators easier to identify and supervise while allowing authorities to apply existing regulatory standards.
The draft would also establish that gambling is prohibited unless specifically authorised by the state through direct operation, concessions, tenders or other regulated mechanisms. Businesses seeking to invest in the online sector would face additional authorization requirements linked to the establishment of a physical gambling operation.
Cuoasec also proposes using the bet.uy domain exclusively for legal online gambling platforms, which it believes would make regulated operators easier for consumers to distinguish from illegal websites.
Consumer Protection and Responsible Gambling
The proposed framework includes several responsible gambling measures, including self-exclusion tools, protections against underage gambling and greater transparency in the information provided to users.
Cuoasec is also calling for a dedicated fund to support gambling addiction prevention and treatment, financed through proceeds from the regulated market. The chamber argues that stronger oversight is necessary to address the risks associated with an expanding unregulated online sector.
Political Debate Gains Momentum
Although the proposal has not formally entered the legislative process, Cuoasec has already begun discussions with political figures from multiple parties, while the MEF’s General Directorate of Casinos is also reviewing the proposal.
The chamber hopes to broaden the discussion beyond casino games to include online sports betting, creating a wider regulatory framework for Uruguay’s digital gambling sector.
State-led Model Creates Competition
Cuoasec’s proposal is not the only regulatory initiative under consideration. Senator Felipe Carballo has previously proposed a state-sponsored online gambling platform alongside a National Regulatory Agency responsible for licensing operators, monitoring transactions and maintaining a national player register.
The competing approaches reflect an ongoing debate over the balance between state control and private-sector participation in Uruguay’s online gambling market. As digital gambling continues to grow, policymakers will need to determine how regulation can support market oversight, consumer protection and controlled industry development.
