Returning Frente Amplio to power, President Yamandú Orsi has pledged to resolve Uruguay’s long-running split over online gambling regulation. Yet, as Pedro Occhiuzzi of SBC Noticias notes, focus should be on which path Orsi will take toward a liberalised market open for new licences or a tightly controlled model anchored by state monopolies.
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Uruguay will recommence discussions on regulating online gambling as a directive led by new President Yamandú Orsi.
The initiative aims to overcome the partisan hurdles that blocked the 2021 mandate of former President Luis Lacalle Pou, whose Partido Nacional government attempted to launch a regulated market for online gambling through the Ministry of Economy.
As reported by SBC Noticias, the previous bill was approved in the Senate but rejected in the Chamber of Deputies by the Frente Amplio (Broad Front) and Colorado Party. Both argued that the initiative would weaken state control and allow the Partido Nacional to sell municipal casinos to foreign investors.
In March 2025, Orsi’s election victory marked the return of the Frente Amplio to government after five years in opposition. The Broad Front has been the dominant force in Uruguayan politics, having governed the country for two decades uninterrupted since 2000.
The new administration is now positioning itself as the political force capable of settling the issue responsibly, framing regulation as a matter of consumer protection, public health, and state transparency rather than private profit.
The 2021 proposal ultimately collapsed amid controversy and cross-party divisions, leaving Uruguay as one of the few remaining South American nations without a specific online gaming regime.
The opposition at the time accused Pou’s administration of rushing the legislative process and structuring licences in a way that could benefit private developers, notably foreign-backed projects such as Giuseppe Cipriani’s San Rafael Casino in Punta del Este. The resulting lack of trust and political consensus saw the bill shelved indefinitely in 2022.
“It’s time to legislate with strategic vision and a sense of responsibility,” stated Senator Alejandro Caraballo, speaking to SBC Noticias. “Uruguay must transform an activity governed by obsolete regulation into a policy that delivers development, growth, public health, and social justice. The absence of regulation does not stop the phenomenon — it only worsens its consequences.”
Caraballo and senior government figures are advocating for a state-supervised model that would allow Uruguay to regulate, tax, and monitor the sector while preventing harmful play. Among the proposals being discussed is the creation of a national online betting platform operated under state control to “guarantee transparency, prevent underage gambling, and promote responsible play.”
Meanwhile, the government must also address mounting pressure from the country’s football sector, which has long campaigned for a liberalised betting market. The Uruguayan Football Association (AUF) has argued that opening the market to new operators could generate substantial sponsorship and tax revenues, noting that football currently earns just $500,000 a year from the state-authorised Supermatch platform operated by La Banca.
Despite industry expectations, President Orsi has cautioned that any reform will proceed gradually and under strict public oversight. He has reiterated that the Frente Amplio is “the only political movement with the credibility and responsibility to settle online gambling in Uruguay — not to commercialise it, but to regulate it in the public interest.”
“Regulation cannot be dictated by market pressure or political expediency,” Orsi said during a recent cabinet briefing, according to SBC Noticias. “It must be guided by what protects our citizens, safeguards public health, and strengthens confidence in the institutions that govern gambling.”
Legislators have indicated that formal proposals may not reach Parliament until 2026, but preliminary discussions between the Executive Branch, La Banca, and casino stakeholders are already underway.
Unlike Pou’s previous administration, the Frente Amplio commands the parliamentary support needed to push through legislation to liberalise online gambling. Yet, observers will remain cautious as the key question is whether Orsi’s government will steer Uruguay toward a liberalised market model or maintain its tradition of state-controlled monopolies, Frente has favoured and protected before.
