Operator News
Chile – Municipal casinos to remain open until new licences are granted
By Phil - 20 February 2017
The Chilean Gaming Control Board (SJC) has issued Circular Number 84 which confirms that the municipal casinos in the communes of Arica, Iquique, Coquimbo, Viña Del Mar, Pucón, Puerto Varas and Natales will remain open until the new operators are ready to take over.
According to a statement released by the Board: “Law No. 19,995 guarantees the continuity of the seven municipal casinos for a total of three periods of fifteen years each, and sets out the procedure for granting operating permits for the specified cases and refers to the transition of the current concessions, it authorises the continuity of the operation of these until a new operator – adjudicated under the procedure indicated by the law – is in a position to operate.”
The circular ratifies Law No. 19,995 (Chile’s casino law) when it comes to the extension of the municipal licences. The seven municipal licences will remain in effect until the SJC issues a certificate attesting to the fact that the new casinos comply with a number of strict legal and regulatory obligations.
While the statement says that Law Number 19.995 sets a deadline for 31 December 2017 for the municipal governments and the current licence holders to agree on new contracts and extensions, the law according to the SJC, does not actually set December 2017 as the deadline for the new casinos to be operational.
It could provide the SJC some breathing room when it comes to the process of granting new licences which has suffered a number of delays and setbacks. In October last year the SJC announced that it had decided to postpone the hearing for the submission of tenders for the bidding for the municipal casino licences which had been scheduled to take place on November 4th. According to a statement released by the SJC via its website the decision was made while the The Santiago Appeals Court considers a number of motions put forward by investors. Investors have filed a writ of amparo – a remedy for the protection of their constitutional rights. A number of companies have argued that the demands put on operators applying for the casino licences are excessive and would make the businesses unprofitable. According to the statement released by the SJC at the time all seven of the municipal casino licences are now on hold and will resume once the court has made its decision.
According to estimates released by the SJC, the new tender process could help raise tax income generated for the state by the new casinos by as much as 46 per cent on average while gross gaming income (which will be divided equally between the municipality and the state where the casino is located) will increase by 20 per cent. This will herald in a number of new large scale casinos especially as a number of the municipal casino licenses, such as the licence for Vina del Mar, are located in the most popular local tourists destinations.
