Colombia Mexico
In Colombia, tens of thousands of anti-government protesters took to the streets and demanded the resignation of President Iván Duque Márquez. Colombians are angry about possible changes to the minimum wage, pension and tax reforms, as well as the privatisation of state companies.
Revenues for the land-based industry for the government seem not to have been that greatly impacted by the upheavals. Indeed, taxation and fees generated by gambling in Colombia have increased by 75 per cent, meaning that Colombian gaming regulator Coljuegos said that it expected to end 2019 with a collection of $664.83bn (US$197,042,980).
In its financial summary for 2019, Pérez Hidalgo, President of Coljuegos, also highlighted the work carried out alongside local governments to help stamp out illegal gambling. In January, Hidalgo announced that the board had collected a record one billion dollars since 2012 in license fees - an increase of 124 per cent since 2012.
Local lawmakers and members of the board continue to sign pacts for the “Legality of the Gambling Sector” a strategy with which Coljuegos aims to combat illegal gaming. Te pacts also aim to promote the “Playing Legal is Betting on Health” public awareness campaign.
Codere and Cirsa Winner Group are market leaders with four per cent and seven per cent of market share according to local reports. Tere are 358 operators in all. In total there
are 86,629 slot machines authorised by Coljuegos, operating in 2,719 establishments countrywide.
However, while the gaming board might paint a somewhat positive picture, the number of casinos and slot parlours have remained pretty much the same as Coljuegos has not issued new land-based licences for some time. According to local reports, operators blame this situation on high taxes as well as illegal gaming, which is still widespread.
In its financial summary for 2019 Pérez Hidalgo, President of Coljuegos also highlighted the work carried out alongside local governments to help stamp out illegal gambling. In January, Hidalgo announced that the board had collected a record one billion dollars since 2012 in license fees - an increase of 124 per cent since 2012.
P74 NEWSWIRE / INTERACTIVE / MARKET DATA
Latin America’s second-largest economy, has struggled to gain traction under President Andres Manuel Lopez Obrador. Obrador took office in December 2018 promising to increase growth to four percent per year. Instead, the economy went into a mild recession in the first half of 2019.
Obrador has publicly come out against the granting of new casino licenses during his six year term as president in Mexico (until 2024). In January, Obrador said that the government will obstruct licences that are being granted by local governments in court emphasising the fact that “the federal government had control over casinos.” However, the lack of a federal policy has meant that the industry is becoming increasingly chaotic as each state sets out its own additional charges and rules. Only recently taxes have been raised in Baja California, which has the most casinos in the country. Of the 344 casinos that exist throughout Mexico, 44 casinos or 12 per cent of the total are located in Baja California.
Crucially, Obrador’s statements in January came after lawmakers for the state of Quintana Roo completed their fiscal measures for 2020, which included an exemption of taxes on the establishment of new gaming rooms for new investors, meaning that all companies that set up a casino would not have paid taxes this year. Tis new rule, however, has already been revoked after a growing public outcry.
For now it is unclear just how far Obrador intends to oppose
gambling expansion. State governments continue to grant licences without the authorisation of the Ministry of the Interior (SEGOB). In Chihuahua, for example, the number of casinos continues to grow without administrative procedures or registration with SEGOB.
In many respects, Obrador will not be able to restrict gambling as SEGOB still allows existing permit holders to continue to expand their operations. In its nine month report issued in November 2019, Codere emphasised that while the President’s decision may affect new licenses, it does not prevent it from using already existing ones (35 + unused licenses) “or continue acquiring halls from small and medium sized operators.” Although 850 rooms are authorised in Mexico for 37 permit holders, so far only 379 are in operation.
In addition, in August 2019 it was revealed that Codere had signed an agreement with Hard Rock to grant it some land in Mexico and build a tourist complex valued at close to US$1bn. Codere will receive 40 per cent of the project in return. According to sources close to the talks, Codere has agreed to transfer land in Mexico City for the US group to build their second guitar- shaped hotel.
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