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ILLEGAL GAMING BITES INTO TAXES
Illegal gaming in Chile has taken its toll as revenues from across the gaming sector have fallen by over 30 per cent
Chile - Government
ARGENTINA - NOVOMATIC READIES SAGSE HOTSPOT At the SAGSE exhibition this month, Novomatic Group will be the centre of attention with its games, latest cabinet innova- tions, jackpots and systems developed by the Group’s numerous development teams from all over the world – and presenting for the first time a new hospitality area in cooper- ation with one of Argentina’s most famous artists and wine- makers, Helmut Ditsch. Show visitors will be welcomed by the AGI sales team as well as colleagues of all its Latin American subsidiaries.
On show will be the new Dominator with NOVO LINE Interactive multi-game mixes, the Super-V+ Gaminator with Super-V+ and Premium-V+ Gaminator mixes as well as the Novo-SuperVision and NOVOSTAR SL machines. A range of Jackpots, signage and the innovative Pinball Roulette will present extra attractions for the region’s casino floors. Octavian will showcase the modular casino management system ACP (Accounting – Control – Progressives) as well as a range of Octo-Games multi-game mixes.
A special highlight at the Novomatic booth will be the cooper- ation with renowned Austrian-Argentine artist and wine- maker Helmut Ditsch. In the special Novomatic hospitality bar area he will present his range of excellent Argentine wines to the Novomatic guests.
ARGENTINA - JCM GLOBAL BRINGS IVIZION TO SAGSE JCM will show a wide range of its product line at SAGSE in Buenos Aires that help operators evolve their casino floors and take profit potential to a new level. The evolution begins with the iVIZION bill validator. iVIZION has the most diligent counterfeit protection, an RFID ICB cashbox with encrypted and web-enabled data, 64 megabit FLASH memory, a self- calibrating sensor package, modular component design, abil- ity to read barcodes horizontally and vertically, two high- speed processors, sealed 85 mm banknote path, patented and proven removable stacker mechanism, “Blind Mate” and “Hot Swap” design and complete compatibility with all gam- ing protocols will be one of the highlights of the exhibition.
COLOMBIA - GLI BECOMES FIRST ACCREDITED LAB Gaming Laboratories International (GLI), has been accredited as a gaming test lab in Colombia by COLJUEGOS (Empresa Industrial Y Comercial Del Estado Administradora Del Monopolio Rentistico De Los Juegos De Suerte Y Azar), gam- ing and lottery regulatory entity. GLI is the first test lab to be accredited in Colombia, once again proving GLI to be a leader in the Latin American and worldwide gaming industry.
GLI Director of Latin American Development Karen Sierra said: “GLI’s philosophy is to support regulatory development efforts in jurisdictions worldwide, and dedicating resources to achieve our recognition as a laboratory in a diligent manner is the best way to support the gaming regulator. We are excited to be participants of the important regulatory development process that COLJUEGOS is going through and look forward to continuing to support their efforts.”
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The growing illegal gaming sector is having an increasingly negative effect on the Chilean gaming industry. According to the most recent statistics released by the Chilean Gaming Control Board (SJC) Gross Gaming Revenue was down by 30.2 per cent in August compared to the same period in 2012. Gross Gaming Revenue stood at US$37.4m while visitor numbers were also in decline and stood at 465,892 - a 23.9 per cent drop compared to last August. Meanwhile, gross gaming revenue from January to August this year stood at US$331.6m compared to US$383.5 in the same period last year - a drop of 13.5 per cent. Revenues continue to fall as illegal gaming continues to thrive. In August (as we reported at the time) GGR slid by 7.4 per cent.
Despite this gaming tax revenue generated by the industry is still significant and remains a major contributor to the state. So far this year tax gener- ated by the private casinos in Chile stood at US$55.0m via the special tax on gaming, US$52.9m in VAT and US$23.2m in tax on entrance fees.
However, Illegal gaming has become an increas- ingly significant issue in Chile. It is estimated that there could be as many as 150,000 illegal slot machines located in slot parlours with a further 50,000 slot machines located in small businesses
and shops. Known locally as “casinos of the peo- ple” or “neighbourhood slots” they have been able to grow so quickly as local governments have not drawn a clear line between slot machines and Skill With Prizes machines.
The issue is becoming increasingly controversial with some law makers calling for regulation of the industry, while others believe that an outright ban on slot parlours and illegal slots in small business- es is called for. This could cause increasing friction between the executive branch, which is calling for a ban, and The Chilean House of Representatives, which has recently approved a request to the executive branch, which would make slot machines outside of casinos legal.
The Association of Chilean Casinos (ACCJ) is also initiating legal action against slot parlour owners in the cities of Valparaíso and Viña del Mar, in conjunction with the mayor of the Region of Valparaíso Raúl Celis, and the major of the city of Valparaíso, Jorge Castro as well as the major of Viña del Mar, Virginia Reginato.
New gaming law is on the cards for Argentina’s Corrientes region
ARGENTINA Local politicians in the province of Corrientes are considering a new gaming act which would permit both slot parlours and casinos. Legislator Lucía Aurora Portela de Alvarez has stated that a new law would help end the growth of ille- gal gaming and would establish a clear legislative framework for operators.
Pointing out that there are cur- rently no laws in place that would limit the growth of gaming, Lucía Aurora Portela de Alvarez said that a new law would establish clear player protection measures and would also include strict rules in order to protect the vulnerable from gaming addiction. Meanwhile, tax income generated by the industry would be used for social welfare programmes.
According to the initial draft any concession or license to commer-
cially exploit gambling, betting centers, in all its forms including slot parlours, casinos and bingo must first be approved by a special two thirds majority of both the houses of the legislature.
Although at an early stage, opera- tors will face a number of restric- tions and will have to meet with a number of requirements.
Operators will have to charge admission to slot parlours, casinos and bingo halls and funds collect- ed for the payment of entry tickets will be used to help the treatment of gambling addiction. The new law also stipulates that casinos and gambling halls must not be located in low income neighbour- hoods and that any concession for the operation of slot parlours, casi- nos and bingo, would require that they operate at a distance of not less than 10 kilometres from town centers.
Paraguay The Ministry of Tourism (Senatur) hopes to position Paraguay as an exclusive destination for upper class visitors from Argentina and Brazil, according to plans outlined in October. Landlocked Paraguay needs to focus on adventure tourism as well as nature and cultural packages said spokesman, Javier Ramírez speaking to press at the International Tourism Fair of Paraguay. The Ministry of Tourism plans to take advantage of Paraguay’s location as it borders Argentina, Brazil and Bolivia. It is believed that the Ministry is looking at casinos attached to hotels as a way forward as they would increase tourism in the area and improve local infrastructure.
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