Operator News

Uruguay – President supports private investment in casinos

By James - 30 October 2023

President Luis Lacalle Pou has come out in support of the expansion of the privately run casino sector. After a press conference on national issues, he was consulted by local newspaper Carmelo Portal over the future tender of the Hotel Casino Carmelo.

Lacalle Pou offered a detailed explanation of the steps that the state has followed for several years to reach the bidding process saying that “now is the time for private players.”  He pointed out that the Uruguayan government had completed preparations for the tender and that the response would depend on the interest of the market.

Remo Monzeglio Vice Minister of Tourism highlighted President Lacalle Pou’s interest in moving forward with the tender. 

“The President detailed in the meeting he had with Carmelo Portal, all aspects of the situation at the Hotel Casino Carmelo. At our next meeting, which will take place in 10 days, we will address the current status of the file that is currently with the OPP (Office of Planning and Budget OPP) for legal approval,” Monzeglio said.

The comments come just days after Monzeglio reported that the bidding document had been thoroughly examined on two occasions by the government organizations, including the Ministry of Tourism, the Ministry of Economy, the Municipality of Cologne and the Office of Planning and Budget . Each entity has contributed changes and suggestions to ensure that the document reflects all perspectives involved he said.

“We are committed to transparency and completeness in this process,” said Monzeglio. “Each modification has been carefully considered to ensure that the document is clear and complete.”

The official expressed his confidence in the interest that the call for bids would generate: “I am sure that there will be offers once we make the official call. I have seen significant interest from both businesses and the general public.”

In Uruguay casinos and slot parlours are run and owned completely by the state via Uruguay casino group Casinos del Estado or they are also jointly owned and operated by the private sector and the state under “the mixed system.” There is also one completely privately owned and run casino: Enjoy Casino & Resort in Punta del Este with another one currently under construction: The San Rafael hotel in Punta del Este which was acquired by the Cipriani Group for more than US$40m in February 2018.

Located in the Uruguayan town of Carmelo the term of the Hotel Casino Carmelo casino license ended on June 30 and it closed in July 2020. In August 2021 Monzeglio said that the hotel and casino would be reopened after a tender and it could be up and running over the next two years. The new owners would renovate the state owned property into a five star hotel in return for the license to operate a casino on the premises.

In April this year the executive created a commission made up of the Ministries of Tourism and of Economy and Finance, the Office of Planning and Budget, the National Ports Administration and the Municipality of Colonia to work on the terms of the new tender. In May 2023 members of the political party Partido Nacional in Colonia approved a resolution that wrote off a real estate tax debt generated by the Airemar Corporation. The corporation was in charge of the management of the Hotel Casino Carmelo between 1991 and 2020.