Legislation

Uruguay – Bill sent to Uruguay’s congress to regulate slots

By Phil - 13 November 2015

The government of President Tabaré Vázquez has sent a bill to the House of Representatives which would ban slot machines outside of casinos and slot parlours.

After being stalled for seven years the Executive branch has finally returned the legislation for debate which had been dropped due to growing controversy and a lack of consensus on the issue. The bill is now being studied by a committee in the House of Representatives and seeks to put an end to the controversy over the legality of slot machines in unauthorised establishments.

The bill also states that all online gambling which is not run and administered by the state, will be banned and online gaming is also currently a focal point for discussion.

According to official data, throughout the country there are approximately 20,000 slots located in shops, bars, kiosks and sports clubs. On average per month each of these machines collect between U.S$15,000 and U.S$20,000 and do not pay taxes.

Luis Gama Head of The National Director of Lotteries and Quinielas, said that both and slot machines “have no operating permit” and the new law has a high chance of being passed.

“This initiative is in line with what Vazquez proposed in his first presidency,” he said, “but now a number of new features have been added such as the creation of a new regulatory body which will control gaming,” he said.

Gama went on to say that the new initiative is made up of 41 articles and will provide “more transparency” within the industry and will allow for the phasing out of the National Lottery Board as well as the Directorate General of Casinos. The bodies will be replaced with one single body called the National Administration of Casinos and Gambling of the State.

The issue of slot machines outside of slot parlours and casinos has long been a contentious one in Uruguay. During the the first Vázquez administration (2005-2010), the Executive sent a bill to parliament banning slot machines in shops and established a restrictive policy on gambling. This project became stalled in the legislature.

Then the administration of José Mujica (2010-2015) put forward regulation which would allow slots in neighbourhood shops with three slot machines being permitted per establishment with provisions in place that they could not be in close proximity to school, colleges and sports centres.

Online gaming has also been a controversial issue. At present Uruguayans can bet abroad via offshore gaming sites by using international credit cards, while local casinos are unable to offer their services online. A licensed land based operator requested permission to operate online services to locals but was declined permission under the previous administration of José Mujica.