Argentina’s Lottery Network Faces Historic Collapse
Argentina’s traditional lottery retail network, a cornerstone of the country’s gambling landscape for more than a century, is facing one of the most devastating downturns in its 130-year history. Local outlet IProfesional reports that the rapid migration of players to online betting, coupled with Argentina’s prolonged economic crisis, has pushed over 4,500 lottery shops in Buenos Aires Province into severe financial jeopardy.
What was once a stable, employment-generating segment of the gaming industry has now entered a critical phase. Operators in various districts are urging immediate government action to prevent a systemic collapse affecting thousands of workers, small business owners, and local communities.
A Network Under Historic Pressure
The scale of the decline is stark. More than 200 lottery outlets shuttered in the City of Buenos Aires during 2024, with another 150 closing across the province. Forecasts for 2025 indicate the downturn will continue without relief.
CAOLBA, the association representing lottery agency operators, highlights that many shop owners are now opting only for temporary licenses because they can no longer keep up with rising rent, energy costs, payroll and administrative expenses as revenues slump.
During discussions with city officials, CAOLBA president Marcelo Iemma warned that the sector is experiencing a breakdown unmatched in its long history. “This crisis is unlike anything seen in more than a century,” he reportedly emphasized.
Operators Demand Relief and Modernization
The severity of the situation led roughly 200 agency owners to request a meeting with Buenos Aires City Mayor Jorge Macri. They were instead received by Chief of Cabinet Gabriel Sánchez Zinny, where CAOLBA outlined the main structural issues:
The lottery network has been left behind by modern gaming policy and excluded from the digital betting boom.
Online platforms have diverted a growing share of bettors away from physical premises.
The country’s economic turmoil has amplified operating costs that small businesses can no longer absorb.
CAOLBA’s primary proposal is to allow land-based lottery retailers to participate in the regulated online betting ecosystem. The association argues that their regulatory experience could help reinforce consumer protection standards within the digital market.
Protecting Minors: A Key Social Role
Another major concern raised by CAOLBA is the rise of underage participation in online gambling. According to Iemma, physical lottery shops have an important identity-verification function that online operators struggle to replicate. He insists that agencies could play a critical oversight role by ensuring credit top-ups for online platforms are not carried out by minors.
The issue has gained national attention amid reports of increasing youth exposure to gambling through mobile devices.
Additional Measures Sought by Agencies
Operators are also calling for several policy adjustments, including:
A reassessment of the Gross Income Tax rate, which many claim has become unmanageable.
A national MyPYME certificate to grant them access to small-business support tools.
Permission to introduce Video Lottery Terminals (VLTs), which would require approval from Buenos Aires Province under Governor Axel Kicillof.
A Crisis Spreading Across the Country
The turmoil is not limited to Buenos Aires. Lottery operations in multiple provinces are under similar pressure:
Santa Fe: Online wagering on the popular Quini 6 has reduced foot traffic and weakened the role of physical betting shops.
Córdoba: Some agencies are suspected of enabling illegal betting to survive financially. Provincial lottery officials warn that official revenue has plunged. Many shops generate only about ARS 250,000 (USD 172) per month not enough to cover even the most basic expenses.
Regulators also note that players appear to be drifting away from traditional lottery formats altogether, accelerating the decline in profitability.
An Uncertain Future for a Century-Old System
With thousands of agencies in Buenos Aires Province alone struggling to stay open, Argentina’s lottery network stands at a defining moment. Digital betting has reshaped player behavior and forced a rethink of the retail model that sustained the sector for generations.
Many operators accept that resisting digital transformation is no longer viable. Instead, they are calling for integration into the online system, tax reform, modernization policies and regulatory flexibility to ensure long-term sustainability. Proposals such as introducing VLTs and adjusting tax structures may be evaluated by provincial governments in the coming months.
The survival of a retail network that has supported families and communities for more than a century now depends on swift, coordinated action and a willingness to adapt to a radically changed gaming landscape.
