Insight
LATIN AMERICA: ILLEGAL GAMING
Bolivia Size of the Illegal Gambling Market
Bolivia is one of the most poorly regulated markets in the region. Tere is only one licensed gaming operator in the entire country.
Current Measures in Place South America
Argentina Size of the Illegal Gambling Market
Illegal gambling is widespread in Argentina especially in the province of Buenos Aires where, according to government estimates, it is five times the size of the legal sector. Illegal gambling generates an estimated $50bn pesos per year in the province alone. Tere are around 90 illegal sports betting centres as well as a great number of numbers runners and illegal quinela operations, which exist behind front businesses, as well as social clubs, and private homes. Tere are also a large number of illegal casinos and sports betting operations in the province. Illegal gaming is also extremely widespread nationwide.
Current Measures in Place
Illegal gaming is Argentina is a complex issue as there is increasing evidence to suggest that politics and illegal gaming could be linked. A major investigation was launched in 2016 into claims that corrupt officials could have used money generated by bingo halls and lotteries in the province of Buenos Aires in order to launder money and finance political campaigns. In 2016 Deputy Elisa Carrió went as far to allege that while Daniel Scioli was governor of the province around 1,340 lottery agencies were created and outlined a possible scheme whereby money was siphoned off during the licensing process in order to fund political campaigns.
In addition, for over a decade police have been paid by illegal operators to look the other way while illegal gambling centres have proliferated. In 2016, the government raided several properties in a number of municipalities,
Outlook
Argentina Market Since Vidal took charge, the police working alongside the Commission for the Prevention and Repression of Illegal Gambling has made 170 arrests, confiscated more than $34m and carried out over 160 raids. Restricting gaming is undoubtedly a priority for the government. While the government has launched the public tender for the 3,860 slot machines in seven state casinos in the province of Buenos Aires, it still plans to restrict gaming and will close three casinos as it is ideologically opposed to gaming and wants to restrict the gaming offer. While making the announcement for the new tender in January 2018 Vidal announced that the crackdown on illegal gambling would continue.
Gaming in Argentina is regulated on a provincial level and it is believed that many provinces could soon follow suit. Tere have been a number of police operations in Misiones this year as well as a police raid on an illegal casino in Salta. In addition, members of the Provincial Institute of Games of Chance of Neuquén met recently with lawmakers to try to toughen penalties for those found to be running illegal quinela.
millions of pesos were confiscated and over a hundred arrests were made in a crackdown initiated under the leadership of the Governor of the province of Buenos Aires María Eugenia Vidal and spearheaded by the Lottery of Buenos Aires.
Te National Lottery Commission of Charity and Health (LONABOL) was replaced by a new gaming board Te Authority of Taxation and Social Control over Gaming (AJ) after a number of high ranking members of LONABOL were charged with corruption offenses revolving around the illegal extensions of casino licences. While there are no official statistics available, very little headway has been made in eradicating illegal gambling which continues to evolve and proliferate rapidly despite the passing of Law of Lottery and Games of Chance in 2010, which placed the industry under the control of the central government and raised taxes significantly. Te gaming industry in Bolivia was also singled out last year as vulnerable to money laundering by the International Narcotics Control Strategy Report (INCSR) - an annual report prepared by the Department of State to Congress as “many games operate in the informal market.”
Since 2011 - when it went first into operation - the AJ has been extremely active and has carried out more than 1,100 raids on illegal gambling houses and confiscated 12,000 machines, which were then destroyed. However, beyond raids and criminal prosecutions the government has been unable to regulate the industry more closely. Due to the high tax rate plus additional taxes on players put in place in 2010, every legal gaming establishment bar one has been shut down while players are turning in increasing numbers to offshore operators and illegal betting centres.
Outlook
Bolivia Market Illegal gambling is particularly prevalent in the department of Santa Cruz. Illegal gambling has evolved from slot parlours to smaller operations based in private homes, which allow locals to bet online via computers on site. Tis trend looks likely to continue. In addition online gaming especially via social networking sites and via online betting centres (which are often disguised as internet cafes) are growing at a fast pace but the board does not have the legal or technological resources to regulate them.
NEWSWIRE / INTERACTIVE / MARKET DATA P51
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