Uruguay Size of the Illegal Gambling Market
According to Te Uruguayan Chamber of Commerce for Games and Entertainment (CUDE) there could be as many as 20,000 slots outside casinos in Uruguay. However, according to local newspaper reports, the figure could be much higher with the number growing considerably in recent years. Stand alone illegal slot parlours are increasingly common and slots are present in much higher numbers per location. Most illegal slot parlours operate in plain sight. Te Directorate of Lotteries and Quinielas, estimates that there are more than 30,000 illegal slot machines - five times that of the number of licensed slot machines in casinos, and that US$170m is gambled on illegal slots per year.
Current Measures in Place
Slot machines operating outside of casinos have been present for over twenty years. According to CUDE although slot machines outside of casinos have caused considerable controversy in the past, since 2004 53 court judgments had been awarded in their favour in which both prosecutors and magistrates established that their activity was lawful.
Tere have been a number of attempts to either regulate or ban slot machines outside of casinos and state licensed slot parlours. In 2009 the first administration of President Tabaré Vázquez sent a bill to the House of Representatives which would have banned slot machines outside of casinos and slot parlours. Te bill proposed punishing those found to be operating illegal slots with prison. Te initiative described how illegal machines had proliferated "throughout
P56 NEWSWIRE / INTERACTIVE / MARKET DATA
In July 2016 a new law was put forward by the Vázquez government (after Vázquez was re elected for office in 2015). Te new bill seeks to create a new governing body called the National Management of State Gambling and Casinos which would exercise state control over all types of gambling.
the country, in different shops, bars, nightclubs and even social and sports institutions." It also denounced the lack of "guarantees and controls" when it came to pay outs. However, the law was never passed. Te administration of José Mujica (2010-2015) also put forward regulation which would have allowed slots in local shops with three slot machines being permitted per establishment but this too failed to garner sufficient support.
In July 2016 a new law was put forward by the Vázquez government (after Vázquez was re elected for office in 2015). Te new bill seeks to create a new governing body called the National Management of State Gambling and Casinos which would exercise state control over all types of gambling apart from state lotteries which would be put under the control of a newly created Betting and Gaming National Comptroller’s Office.
Te new act strengthens the state monopoly over the industry and would ban slot machines outside of casinos. Bodies representing slot owners outside of casinos publicly stated their willingness to pay an annual fee of US$500 per slot and demanded that the government regulate the industry. Te bill is currently stuck in the committee stage.
Outlook
Uruguay Market According to local press reports, slot machine interest groups are wielding increasing influence in order to prevent any changes to legislation which would ban them outright in the future.
Te Directorate of Lotteries and Quinielas and the Ministry of Economy believe those operating slot machines outside casinos are committing a criminal offense but they are consistently losing the battle in local courts because there are no laws in place specifically related to slot machines in small businesses. In addition there seems to be little political will to ban or regulate them altogether.
None of the projects regarding slot machines which the Executive Branch has sent over to parliament for debate over the last three administrations have gone beyond the committee stage and there is little sign that this situation will change in the near future.
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