G3Newswire SOUTH AMERICA NEWS CONFUSION OVER NEW CASINO TAX
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Confusion has broken out in Panama as the implementation of a new tax regime for casino operators causes chaos
Panama - Legislation
According to the president of the Association of Managers of Gaming (ASAJA), Antonio Alfaro, new regulations stipulating a tax on cash with- drawals by customers in casinos, are now being plagued with a number of technical issues which make it almost impossibly to collect the tax.
PERU – ALFASTREET PROGRESS IN PERU MARKET At the 2015 Peru Gaming Show, Alfastreet with its distribu- tor, DRGT Peru, created a stage for its roulette machines, which has become the most popular machine on the market.
In the last two years every major casino operators has switched from previous equipment to Alfastreet, being satis- fied with the machine performance, reliability and, of course, profitability. The strongest selling point of these machines is a trouble free long-term operation with unconditional sup- port from the company. It’s the reason why the biggest gam- ing operator in Peru, Samcorp, choose Alfastreet R8 elec- tronic roulette to be installed in all their venues.
At the exhibition, attention was concentrated on the R8 (eight player stations) in the latest edition, with the Lucky Number roulette Jackpot, fully equipped, with touchscreens, multigame and simultaneous play options. The traditional solid build and reliability are paired with technically advanced features, yet retain the familiar user interface which is intu- itive and easy to operate, enabling players to feel as close to the live game as possible. Despite not bring the Royal Derby horse-racing machine to the show, there was a lot of interest for this product. This virtual horse-racing platform is per- forming very well in the market, which has a great tradition and love for the sport. Since the event, Alfastreet has con- firmed that the second Royal Derby machine in Latin America will be installed in Peru, immediately after the one in Colombia. The excellent partnership with the operators and the consequent trust is a true testament to our efforts, con- firming the direction Alfastreet took with the development of the product range.
ARGENTINA – CRYSTALDUAL AND S3000 LAUNCH IGT and Casino Club, Argentina’s largest casino operator, will introduce IGT’s latest hardware, the CrystalDual and S3000 cabinets, to Argentina. IGT recently secured an agreement with Casino Club to install 270 CrystalDual and 30 S3000 cabinets in Casino Club locations throughout Argentina over the next several months. Approximately 80 units will be installed in Buenos Aires’ iconic destination, Hipodromo Argentino de Palermo.
“IGT is firmly committed to the growth and success of gam- ing in Argentina, and we’re excited to work with our long- time partners at Casino Club to introduce leading technology such as the CrystalDual and S3000 to players in the region,” said Sabby Gill, IGT Senior Vice President of International Commercial Gaming.
“We constantly strive to keep our casino environments mod- ern, to drive play with engaging content, and to offer our patrons the industry’s most cutting-edge gaming experi- ences. We’re confident the IGT CrystalDual and S3000 cabi- nets will enable us to achieve all three of these goals,” said Ricardo Benedicto of Casino Club.
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Law 23 went into effect in May which applied a tax on cash withdrawals from casinos of 5.5 per cent. However according to Mr. Alfaro those responsible for drafting the law were not aware of the intricacies behind the accounting proce- dures on casino floors. For Alfaro, errors in the regulation mean that the lawmakers responsi- ble for drafting the document did not know how accounting management procedures of casino works. “The authorities should have asked what things could have been done and what couldn’t have,” he said.
However, Javier Said Acuña, Head of the Legal Department of the Directorate General of Revenue (DGI), said “casinos and slot halls know that the tax is fully in force and must col- lect it as established by law."
According to Alfaro, the ASAJA have been in communication with the Gaming Control Board, the DGI and the Legal Department of the Ministry of Economy and Finance, since the
regulation was published and have made them aware of the problems they are now facing.
The previous law stated that 7 per cent was payable on payouts of US$300 or more via slot machines. However the 5.5 per cent tax applies now to all cash withdrawals made in casinos, including tips to employees, who have already expressed their complaints on the grounds that tips form part of their salary.
“We have absolutely nothing to do with this tax, we have been ordered to gather and collect it and transfer it to the state. The person is responsible for paying the tax is the customer, we are responsible for collection and that's what the government has not been able to com- municate,” Alfaro said.
Complicating the matter further is the fact that tax deductions are made even if the customer cashes in chips without winning. So, as Alfaro explained, if the customer buys US$100 in chips and decides to stop playing after losing US$80 and wishes to cash in US$20 the tax is still deducted.
The ASAJA has also called for exceptions to the tax for horse race betting not only in the President Remón race track but also all sports betting centres as many already face closure.
Uruguay Administration divided over the future of gaming
URUGUAY The Uruguay administration is currently divided over the future of slot machines outside of casi- nos. According to reports emerg- ing in local press, Uruguayan President Tabare Vazquez, is not behind new proposals which are currently being put forward by the Ministry of the Economy, which would regulate slot machines in small business and shops.
Illegal slot machines have become an increasingly pressing concern as they now generate around US$170m a year and do not pay taxes. The President is currently waiting on a report from the Secretariat of State before deciding on a course of action.
However, it would seem that Vazquez seems to be in favour of
legislation similar to Mexico and Chile which prohibits slots from operating outside casinos while Economy Minister Danilo Astori intends to permit slot machines to operate but only under certain conditions.
Online gaming is also currently a focal point for discussion. At present Uruguayans can bet abroad via offshore gaming sites by using international credit cards, while local casinos are unable to offer their services online. A licensed land based operator requested permission to operate online services to locals but was declined permission under the previous administra- tion of José Mujica.
Another proposal, which is cur- rently under consideration, is a newly decentralised regulatory board. Under new proposals put
forward by the Chair of Economics, legislation would first be approved which would update Uruguay’s gaming rules, and create a new gaming board and then the issue of slot machines would be debated in Parliament.
The issue of slot machines out- side of slot parlours and casinos has long been a contentions issue. During the the first Vázquez administration (2005- 2010), the Executive sent a bill to parliament banning slot machines in shops and estab- lished a restrictive policy on gambling. This project became stalled in the legislature.
Then the administration of José Mujica (2010-2015) put forward regulation which would allow slots in neighbourhood shops with three slot machines being permitted per establishment with provisions in place that they could not be in close proximity to school, colleges and sports cen- tres.
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