SOUTH AMERICA
March 1, 2010
BANNER YEAR IN CHILE: WIN UP 150 PERCENT
Gross
gaming revenues at Chile’s casinos grew 150 percent last year, as the opening
of seven properties brought the number of new casinos to
15.
The annual survey by the
country’s Superintendence of Casinos showed the industry last year paid a total
of US$89m in VAT and gaming taxes on total revenues of $220 million, up from
$78 million in 2008, according to a report by
GamblingCompliance.com.
About
75 percent of gaming revenues, roughly $165 million, came from the nearly 7,000
slot machines operating under reforms enacted in 2005, which limits gaming
devices to licensed casinos but has allowed the regulated industry to expand
dramatically.
Visitation rose to 4
million visitors last year, and the average spend per visit was up 20 percent
to nearly $30 from $24.60.
“Comparing the operating
results of 2009 with those of the previous year, we can see that the new casino
industry has entered a period of sustainable growth,” said Superintendence
Director Francisco Leiva.
Leiva said final
regulatory approvals are on the way for three more planned casinos this year.
Beyond that, continued opposition from older operations that pre-date the
reforms has made it uncertain whether more licenses will be made awarded in the
future.
Atronic was the market
leader in Chile last year based on the number of its machines in operation in
Chilean casinos, the Superintendence said, as the German-based group accounted
for 20.5 percent of the 6,779 slots installed on casino floors in the country
at year’s end.
U.S.-based WMS came a
close second with 19.4 percent share of the slots market, followed by Bally
Technologies (17.1 percent), IGT (15.9 percent), Aristocrat (12.2 percent) and
Novomatic (11.2 percent).
PARAGUAY OKS BIDS FOR CASINO LICENSES
Paraguay’s
National Games of Chance Commission last month allowed bids from eight
companies for 10 casino licenses.
The bids were received
over the objections of one of the bidders, La Gloria Hotelería, which sought
clarification on several issues and wanted a “public audience” with the
bidders, according to a report in the digital daily Última Hora. La Gloria said
the tender process was fraught with “legal insecurity” and cited alleged
inconsistencies on the part of the commission, claiming that identical cases
before the commission had been resolved in completely different
ways.
Eight firms bought bid
documents in addition to La Gloria: Vouga & Olmedo, acting on behalf
of Azar Internacional and Casinos
Paraguayos; 7 Saltos; Monalisa; SES; Cosmopolitan Club; Del Este Inversiones;
and Lácteos Valtellina.
COLUMBIA HIKES VAT ON GAMBLING GAMES
Colombia’s
decision to raise the VAT on gambling games to 16 percent has raised fears that
illegal gambling will only increase.
The president of the
Colombian Federation of Games of Chance, an industry trade group, appealed the
increase to the Ministry of the Economy, arguing, without success, that it
places licensed operators at a disadvantage in competing with a proliferation
of illegal gambling operations.
“Unfortunately, the
minister told us that there was nothing to be done,” Baltazar Medina told
Caracol Radio. “We know that in Colombia illegal gaming grows more and more
every day and that bettors prefer to gamble with businessmen that do not charge
the VAT.”
The governor of Caldas,
Mario Aristizabal, also said that the increase, which applies to alcoholic
beverages as well, may increase illegality.
“We think that this
increment in VAT may not only cause the commercial sector to be less
competitive, and may boost illegal gaming, but will also increase the smuggling
and adulteration of liquors.”
The Ministry of Social
Protection said the tax increase will generate between US$400 million and $500
million in new revenues, which will be used to reduce the deficit in the health
budget.
PRINCESS HOTEL TO HOST GUYANA'S FIRST CASINO
A US$2 million
casino is set to open in Guyana this month.
The
Princess Casino, operating at the Princess Hotel in Providence, a suburb of the
capital of Georgetown, will be the first casino to open under the 2006 Gambling
Prevention Bill, which legalizes the industry within hotels and confines its
clientele to hotel guests.
According
to a report in Starbroek News, the casino
will cover about 1,486 square meters and feature blackjack, roulette, poker and
some machine gambling. To ensure is
success, management said the hotel is
reaching out to foreign and local tour operators.
Turkish hotel group
Princess bought the hotel, formerly Buddy’s International Hotel, in 2008 for
US$15 million from local businessman Omprakash “Buddy” Shivraj.
LICENSE RENEWALS SPARK OUTCRY IN BUENOS AIRES
Governor Daniel
Scioli of Argentina’s Province of Buenos Aires has enacted a decree to extend
the licenses for the operation of seven bingo and slot halls without opening
them to outside bidding
The decree exempts from
bidding slot venues and bingo halls (which are allowed to operate gaming
machines in the province) whose licenses will expire before 2011. Benefiting
are venues in Mar del Plata, Mar de Ajó, San Martín, Moreno, Quilmes,
Avellaneda and Zárate.
Provincial authorities
justified the extensions on technical grounds relating to changes in EGD
hardware and software. But some lawmakers have protested and have threatened to
appeal the decree’s legality to the courts.
GLI APPROVED TO TEST BY CHILE'S REGULATORS
U.S.-based Gaming
Laboratories International has become the first gaming testing lab to receive
accreditation from Chile’s Superintendence of Casinos.
GLI is the first testing
lab to receive accreditation under the 2005
law that reformed the country’s casino industry and allowed it to expand
in a manner that has become a regulatory model for South America.
The law also established
the homologation process under which GLI will operate, and the company is
participating in the process for establishing those
standards.
GLI
has been growing steadily across Latin America and now tests for regulators in
Argentina, Panama and Peru and is working with Colombia and Mexico to develop
technical standards in line with international practices.
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