Wire SOUTH AMERICA
Te go vernment is evaluating the creation of an integrity agency to monitor betting and lotteries, whilst an operational monitoring system is in a testing phase.
BRAZIL LEGISLATION New Gambling Board in the Works
Te Brazilian government is set to create a new gambling board responsible for tax inspections and the prevention of illicit activities.
Paraguay - New bridge could lead to expansion According to local press, the construction of a bridge between Brazil and Paraguay called Integration Bridge (El Puente Internacional de la Integración) will lead to significant investments in both public and private infrastructure including investment in casino projects. The construction of the Integration Bridge between Brazil and Paraguay, along with a recent announcement of the construction of another bridge is expected to play a pivotal role in the Alto Paraná region, a local official has gone on record as saying.
The construction of the new bridge over the Monday River is anticipated to take at least two years and will span 500 metres. This bridge will connect with the Integration Bridge which links Presidente Franco in Paraguay with Foz de Iguazú in Brazil. Presidente Franco is a city located in the Alto Paraná Department in eastern Paraguay.
It is one of the most important urban centres in the region while Foz do Iguaçu in the state of Paraná, Brazil is a gateway to the Iguazú Falls. The international road link across the Paraná River cost around US$84m and was completed last year. The Public Works Ministry reported that complementary and necessary works are currently underway.
Argentina - Sante Fe operators consider court Faced with increased taxes imposed in December, two operators in the province of Santa Fe are considering taking legal action against the government. In December, the provincial legislature passed a new law which increased taxes from 6.5 per cent to 10.5 per cent on gross income across a number of sectors, including casinos.
The casino operators have said that they are considering suing the government of Maximiliano Pullaro, whose team promoted the project. The three Santa Fe casinos are run by the Boldt Group, which has the concession of the Santa Fe and Melincué gaming halls, and Ricardo Benedicto, who operates the City Center of Rosario.
According to local press, both firms have said that they are planning to initiate legal action against the government because they believe that the tax is confiscatory. Casino Santa Fe warned of a future of “zero profitability” with the new law, which will force them to modify their investment plan in the city of Santa Fe.
The province sanctioned several bills sent by the Executive Branch including an online gambling bill that was approved without any changes. Bill 52665 establishes that taxes increased on online gambling from 10 per cent to 15 per cent of GGR, as well as granting current licence holders permission to continue operating online casino games.
P14 WIRE / PULSE / INSIGHT / REPORTS
Te Brazilian government is in the process of creating a National Gaming and Betting Secretariat (Secretaría de Apostas Esportivas). According to local press, the secretariat will be operational by the end of January tasked with responsibilties including tax inspection and the prevention of illicit activities, such as money laundering.
Te team will be made up of public servants moved to the secretariat from other government departments as well as professionals recruited from the private sector. One possible candidate for the head of the secretariat has been identified as José Francisco Manssur who has played a crucial role in developing Brazil’s online gambling law and is part of the Ministry of Finance.
In addition, the Ministry of Sports is also moving ahead with plans to hire 12 employees dedicated to combating match manipulation and it will also oversee the transfer of revenue generated by the newly regulated industry to
sports entities. Te Ministry of Sport will have to work in partnership with the treasury to prevent match fixing. It will also receiving part of revenue from betting which it will pass on to sporting institutions in Brazil.
According to newspaper Metrópoles, the Minister of Finance, Fernando Haddad, negotiated with the Ministry of Management and Innovation in Public Services (MGI) and managed to obtain 38 positions for the National Sports Betting Secretariat. According to the newspaper, the idea was for the number to be higher - over 65 positions.
In June last year, members of the Ministry of Management and Innovation in Public Services (MGI) met with the Ministry of Finance to create the new secretariat in charge of the funds collected from online betting. Finance Minister Fernando Haddad needed the approval for certain key roles in the department that will be responsible for handling the income generated by sports betting once regulated.
Ecuador Ecuador - President cancels casino referendum
President Daniel Noboa has cancelled the popular consultation that could have allowed for the return of casinos. Via a message broadcast by his office the government announced that it would not include gambling as part of the proposals.
Te return of casinos, slot halls and sports betting had been one of 11 questions that President Daniel Noboa had wanted Ecuadorians to answer in an upcoming referendum on key issues. Te questions had been sent to the Constitutional Court for approval. However, the executive has removed question 11 which would have asked Ecuadorians if they were for or against the return of gambling.
Te Ecuadorian president, in a message broadcast by his office, ratified to the Constitutional Court his intention to bring at least ten of these questions on security, justice and employment to a popular consultation.
However, he confirmed that he had withdrawn question eleven on casinos and games of chance, because "he deems that the citizen debate related to this issue is not appropriate at this time."
According to news agency EFE Noboa's withdrawal of the question came after he was criticised by a number of lawmakers as they said that the return of casinos could be used by organised crime to launder money. Te president ratified the other questions from the first block of topics that he has proposed for the popular consultation and which are mostly aimed at allowing the Government to "adopt structural measures to address problems such as insecurity."
Te citizen debate must focus on "the recovery of peace, the fight against terrorist groups, the consolidation of the State's institutions and the generation of employment," said the president in the letter.
Mexico
Senators Geovanna Bañuelos, Cora Pinedo Alonso, Martha Márquez and Joel Padilla of the Te Labour Party have put forward a project that aims to limit the number of casino permits during the first years of each federal administration.
Te initiative aims to reform article 3 of Mexico’s Federal Law on Games and Sweepstakes. Te lawmakers propose that licenses will only be granted by the Ministry of the Interior during the first three years of each Federal administration. Te project has been sent to the joint commissions of the Interior and Legislative Studies for analysis and subsequent rulings.
Senator Bañuelos, coordinator of the PT Parliamentary Group, noted that during the six-year term of Vicente Fox, 340 operating permits were granted for casinos with 153 of these permits authorised by then Secretary of the Interior, Santiago Creel Miranda; while the government of Felipe Calderón authorised 154 permits.
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