Paraguay
Paraguay is set to retake its position among the fastest-growing South American economies in 2020. Monetary stimulus and public investment will allow it to expand the most in three years. Conservative, Mario Abdo Benítez, was elected president of Paraguay in April 2018, meaning that the right-wing Colorado Party (which has governed the country nearly continuously since 1953) will continue in power.
Paraguay could prove to be an area of significant growth in the long- term when it comes to casinos. Te Ministry of Tourism (Senatur) is looking at Integrated Resorts as they would increase tourism in the area and improve local infrastructure. Casinos have been permitted in Paraguay since 1997, but the casino industry is still extremely underdeveloped and has been slow to get off the ground.
Te path to the building of large scale casinos is, however, proving particularly bumpy. A number of tenders have had to be cancelled due to irregularities and a lack of transparency over the years. In
November 2018, the National Gambling Commission of Paraguay (CONAJZAR) cancelled the public bidding for a casino in the Department of Alto Paraná. Plans for the large scale casino and hotel in Ciudad del Este had to be abandoned over claims that lawmakers had unlawfully paved the way for the use of government land. A number of operators were believed to have been interested in opening a casino in the city, including Hard Rock International as well as other operators from the United States and Chile. According to the terms of the bidding process, total investment would have stood at between US$50m and US$70m.
Controversy now surrounds a new mega complex planned for San Francisco Island with the head of the gaming board saying that the licence was granted for too long and restricts competition.
Te casino marks the most highly significant development for the industry in many years.
Te investment envisaged for the new complex stands at around US$150m and includes the construction of a five-star hotel, including a convention centre for 2,000 people, restaurants, a casino, luxury shops and an amusement park.
Insight
LAND-BASED CASINOS Paraguay & Peru
Controversy now surrounds a new mega complex planned for San Francisco Island with the head of the gaming board saying that the licence was granted for too long and restricts competition. All the same the casino marks the most highly significant development for the industry in many years.
Peru
In Peru, President Martin Vizcarra dissolved congress in an attempt to force new parliamentary elections in the worst crisis in decades. Despite political unrest Peru continues to be one of the fastest-growing economies in the region although it has slowed slightly
Te casino industry is well regulated and a number of foreign operators are already well positioned in the market including Tunderbird Resorts and Sun Dreams. In June, Sun Dreams announced that it would invest US$250m in the Peruvian market.
Peru was seen as a key market for the new company once it had merged.
In January 2019, the Ministry of Economy and Finance (MEF) published new rules covering new taxes on the gaming industry. Te new measures apply the Selective Consumption Tax (ISC) on casino games and slot machines and went into effect on January 1st. Te tax has until now been imposed on the sale and import of certain goods such as fuels, cigarettes, beer, liquor, and soft drinks. Te
government has already admitted that new taxes on gaming establishments could lead to closures.
Te Peruvian Association of Entertainment and Gaming (APEJA) plans to fight the imposition of the new tax in the courts as they argue it will damage
Peru's growing gaming sector and is illegal. Constante Traverso, President of APEJA commented that the new rate, in effect, raised taxes from 12 per cent to 17 per cent. Overall, the industry has reacted to the new taxes by reducing the number of machines and there has been a general downturn in the market.
The Peruvian Association of Entertainment and Gaming (APEJA) plans to fight the imposition of the new tax in the courts as they argue it will damage Peru's growing gaming sector and is illegal. Constante Traverso,
President of APEJA commented that the new rate, in effect, raised taxes from 12 per cent to 17 per cent.
NEWSWIRE / INTERACTIVE / MARKET DATA P77
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