Te 1999 act also included much stricter rules when it came to the operation of slot parlours and casinos including tighter security and player protection measures and it also put in place heavy sanctions for non compliance and set up a new tax regime for the industry. At the same time it created an interdepartmental body called the National Casino and Slot Machine Commission (CONTACTRA) which would form government policy on the issue from that point onwards.
Te passing of the law was followed by a long period of legal uncertainty in the industry. Faced with closure as they no longer met with the legal requirements of the new act a large number of slot hall owners appealed to local courts and filed a writ of amparo – a remedy for the protection of their constitutional rights and were as a consequence able to remain open with the help of local courts. Tis situation lasted for over seven years and by the end of 2006, only 3,000 slot machines were officially registered with the Peruvian government and a further 59,000 slot machines were operating nationwide without a license.
As a result of an increasingly chaotic gaming landscape the Peruvian government was forced to take drastic measures and the clampdown really began in earnest in 2004. Te government gave casino and slot machine parlour owners a year to get their house in order: pay tax, register their slot machines and provide evidence that they were operating fairly. But the new legislation was, in most cases, simply ignored. And when the government did intervene to try
NUMBER OF SLOT PARLOURS AND CASINOS IN PERU 2016
Total In Lima In Provinces
Slot Parlours 722
409 313
and shut down a slot parlour, invariably the operator appealed to the courts and received an extension of their license.
In 2006 a court ruling which had allowed for slot parlors and casinos to remain open finally became void and in December the Peruvian government passed Law N° 28945 “Te Reordering and Formalization of Casino and Slot Machines Law.” Te law declared that court order granting stays of closure, under habeas corpus rulings were invalid. Te new law also ruled that from January 1, 2007 onward operators had to register or face immediate closure and created a new gaming board called Te General Directorate of Casino Games and Slot Machines (DGJCMT) which came under MINCETUR. Te law allowed the new gaming board permission to grant express permits to operators which were granted within 30 days while financial findings regarding the operator were verified by Peru’s Financial Intelligence Unit. Express licences were granted for an initial period of five years and could be renewed for successive periods of four years.
In addition penalties were increased for non compliance including fines, closures, as well as
Casinos 19
15 4
Total Machines 77,756
48,015 33,535
ten years to life long bans for those found to be breaking current rules. Tose who had not applied for an express licence under the new regime faced immediate closure under the terms of the new act while slot machines and equipment which had not been authorised by the newly established gaming board would be destroyed within 60 days of the new act going into effect. Over the following months, MINCETUR received over 600 applications from slot parlour and casino operators for permission to formalise their businesses and register with the government.
To illustrate how effective these new measure were in 2007 there were just 36 gaming establishments which had been officially authorised by the government to operate. Meanwhile unauthorised establishments stood at 771. Tis meant that just just 3.63 per cent of slot parlours and casinos were operating legally. By 2010 the number of registered gaming operations had risen to 741 meaning that the gaming control board had turned an industry that had previously operated almost entirely outside the scope of the law into an industry that was almost entirely legitimate within the space of just three years.
NEWSWIRE / INTERACTIVE /
247.COM P85
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