Interactive LATIN AMERICA - ONLINE GAMING - URUGUAY
In search of the right combination
Uruguay casinos are either entirely run or operated by the state or run under the “mixed system” - a system where casinos are operated jointly with private enterprise
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With a population of 3.4 million Uruguay already ranks among the top Latin America countries in terms of broadband penetration and in affordability and Uruguay boasts a developed cable network in all mid- and large-size cities. This is despite the fact that there is no internet access through cable TV systems in Uruguay as it has been opposed by government regulators. Uruguay is though home to a fast broadband connection which is government-owned and run by Uruguay’s state-owned telecom provider Antel. Antel now offers affordable rates to customers in an effort to persuade them to switch from relatively slow copper-based DSL service to their fibre optic service in an effort to upgrade Uruguay’s broadband infrastructure.
Online gaming is becoming increasingly popular in Uruguay according to the President of the National Federation of Uruguayan Gaming Leonel Revelese (FENAJU).
P124 NEWSWIRE / INTERACTIVE /
247.COM
Te mixed system has been in place in Uruguay since 1996. Casinos operating under the mixed system account for around 70 per cent of the $150m of gaming tax income received by the Uruguay state per year. Te remaining casinos are state run.
THE CURRENT SITUATION Director of the Uruguayan Gaming Commission
Fernando Nopitsch in 2008 outlined his intention to legalise online gaming. Representatives of the state casinos met in the same year to discuss how online gaming could be regulated in Uruguay but these plans were ultimately abandoned. At present online gaming operates in a grey
area in Uruguay. Tere are currently no regulations in place that establish a legal framework for online gaming nor are there any penalties in place for players gambling via offshore websites. At present Uruguayans can bet abroad via offshore gaming sites by using international credit cards without fear of prosecution by the authorities. Online gaming is becoming increasingly
popular in Uruguay according to the President of the National Federation of Uruguayan Gaming Leonel Revelese (FENAJU) who went so far as to accuse international lobbying groups of targeting Uruguay in order to change its online gaming laws. Revelese said that there was a “major lobbying
offensive in the world and the region, to introduce online gaming in Uruguay.” He went
on to say that the growth of online gaming has “enormous and negative repressions on Uruguayan society.” While offshore operators continue to target
the market locally land based casinos are still 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 administration of José Mujica in 2011. Te issue is now being discussed in a wider
debate on gaming. Calls for changes to Uruguay’s gaming laws are growing due to the rise of illegal gaming with the Uruguayan administration currently split over the future of slot machines outside of casinos. Illegal slot machines have become an
increasingly pressing concern as they now generate around US$170m a year and do not pay taxes. Online gaming is also currently a focal point for discussion and has become part of the wider decision on what should and what shouldn’t be allowed under Uruguay gaming laws. In March 2013 the Director of the Uruguayan Gaming Board Javier Chá called for urgent changes to Uruguay’s gaming laws, blaming the government’s lack of intervention
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