Chile takes another major step in illegal slot crackdown
The Security Commission of the Chamber of Deputies approved administrative sanctions and criminal prosecution for anyone who illegally exploits games of chance.
Legislators finalized the last articles related to illegal gambling. Anyone commercially exploiting gambling machines without the corresponding authorization from the Superintendence of Gambling Casinos (SJC) will face minor imprisonment and a fine ranging from 11 to 200 UTM (Unidad Tributaria Mensual – a monetary measure used in Chile for tax calculations). If the profits exceed this amount, the fine will range from the total to double the earnings.
In previous sessions, lawmakers had already favourably voted on several key measures including the legal definition of gambling machines and the authorization for the SJC to classify machines as gambling devices at the request of municipalities, Customs, and the Public Ministry. Additionally, they ratified a provision that restricts the importation of gambling machines and their components exclusively to individuals and organizations that are authorized and registered with the SJC.
With this latest approval, the voting on measures to combat the widespread illegal operation of gambling machines and games of chance has now concluded. These measures are part of a draft law aimed at creating the Economic Intelligence Subsystem and addressing activities related to organized crime.
The amendment to Article 25 modifies the Municipal Tax Law, establishing that any taxpayer operating bets or exploiting games of chance in a facility licensed for another purpose will be sanctioned with a fine of 300% of the license value and the revocation of the license.
In order to prohibit gambling machines with skill based elements lawmakers approved a definition for gambling machines as those that accept monetary bets or their equivalents, offer a period of use or play, and deliver uncertain or unknown future outcomes, potentially resulting in monetary or valuable prizes. In the past local governments have allowed amusement arcades to operate in their jurisdictions, but they have not drawn a clear line between Skills with Prizes (SWP) machines and slot machines. Subsequently, a great number of arcades house both.
Lawmakers also approved an indication enabling the SJC to classify machines as gambling devices at the request of a municipality or Customs, allowing them to have a specialized technical report without needing to hire experts to dispute the “skill” nature of these machines, as is currently the case. Since public prosecutors can also request these reports, this regulation will aid in the criminal prosecution of illegal gambling.
Meanwhile the importation of gambling machines and components is limited only to natural and legal persons—whether casino operating companies or distributors—authorized for this purpose and registered with the SJC. Importation by others will constitute smuggling.
Undersecretary Heidi Berner emphasized that “everything we have approved so far has been achieved by a broad majority, thanks to the ongoing work with the deputies and their advisors. This ongoing willingness for dialogue allows us to reach agreements to have efficient and timely mechanisms to pursue the financial trail of organized crime.”
