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Uruguay – Calls for new laws to regulate slots in Uruguay

By - 25 August 2015

The Uruguayan Association of Manufacturers and Operators of Electronic Games (AUFOIE), which represents around 40 companies that own slots installed in small businesses has launched a public campaign to show that this activity is not only legal, but also is a major employer.

Spokesman for the AUFOIE Gerardo Dibbern told local daily El Observador that those operating slot machines located outside of casinos are breaking no local laws and went onto to say there was no law currently in place, which prohibits their operation.

Although there are no official figures it is estimated that there are around 20,000 illegal slot machines in Uruguay, which are located in shops and small businesses.

In order to emphasise the legality of slots in small businesses Mr. Dibbern pointed out that slot owners which the organisation represents had won 52 trails in local courts, which had been initiated against them mostly by the Gaming Control Board, and in one instance the National Lottery. Courts have routinely ruled that that exploitation of slots is legal and the government has no right to prohibit it. This is because there are no laws in place specifically related to slot machines in small businesses.

The AUFOIE has drafted a number of new proposals that would put a number of restrictions in place to regulate the market. This would include player protection measures, and limit the number of businesses that may have slot machines on their premises. Where they are present outside bars other amenities should be available such as restrooms. Slot machines will also have to come with an identification code, which could be issued locally, percentages of awards must be strictly controlled and that the number of slot machines should depend on the size of the business where they are located but each would have a maximum of six slot machines on site.

Slot machines outside of casinos have been a long running issue. In 2014 the government considered laws that would have imposed heavy fines and even jail terms for those found to be operating slot machines outside of casinos.

However, the current administration is currently divided over the issue with President Tabare Vazquez in favour of banning them along similar lines as in Chile and Mexico while Economy Minister Danilo Astori, prefers regulating the market which generates an estimated US$170m a year. It is believed that The Head of The Uruguayan Casino Control Board Javier Chá also is also in favour of regulation.

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