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Gambling operators are struggling with their operations in the wake of Argentina’s ever-present inflation problem.
Chilean casino company Dreams, which also operates in Argentina, reported that its revenues had fallen by 6 percent in the second quarter of 2024, which is 14 percent down on second-quarter revenues in 2023. It partially blamed inflation as a cause.
Meanwhile, Boldt SA, which operates both brick-and-mortar and online in the country, and is an Argentine company, appears to be more immune to such troubles, partially because the company is in no danger of running out of capital as it is now eligible for debt investors.
Although revenues are up by 35 percent by the end of the quarter compared with April, Boldt's profits are still down. A recovery in consumption indices in the third quarter due to a slowdown in inflation is, the company hopes, an indication of better results in the fourth quarter.
Argentina has been plagued by currency problems for decades, at one point pegging the value of the Argentine peso to the dollar. In recent years, the currency has wildly fluctuated, including a black market rate for conversion to United States dollars that is so commonly used that it has become known as the “blue rate”.
Inflation has slowed this year from its peak in December 2023 at 25 percent. The rate has since stagnated over the summer months, hovering at around 4 percent per month.
Meanwhile, poverty rates have soared, with 52.9 percent of the population living below the poverty line in the first six months of 2024. That figure is up from 41.9 percent recorded in the latter half of 2023. It is believed to be a result of President Javier Milei’s austerity measures.
To combat youth gambling against the backdrop of this economic reality, a multitude of measures have been introduced in nearly every province. The City of Buenos Aires halted online applications for licences altogether as it vowed to tackle the problem.
Last week, a deputy in the province of Buenos Aires introduced a bill that would dismantle gambling entirely, specifically targeting the law that enables online gaming licences. It is not expected to be successful but is reflective of the growing sentiment that has driven youth protection measures.
