Operator News

Uruguay – Uruguay’s state-run casinos generated US$640m in last decade

By Phil - 21 October 2019

According to a report released by the Directorate General of Casinos state run casinos in Uruguay generated US$640m in the last ten years.

The report covering the period 2009-2018 stated that a total of US$82m was invested in slot machines, technology, equipment and refurbishments and improvements to gambling facilities. The average profitability for the casinos in the period stood at 30 per cent.

The analysis shows that in 2009 the General Directorate of Casinos had 1,129 employees while in 2019, this had decreased slightly to 1,035 workers. Meanwhile the number of establishments increased while services provided by the central office improved. The Directorate stated that all establishments in the country are now connected in real time online.

In Uruguay there is no cap on the number of casinos nor is there a limit on how large they can be. Casinos in Uruguay had been state owned and run since the 1950’s. Then, in 1996, the government began to offer licenses to the private sector. Setting no limit on the number of tables or slot machines, the government, in return for 35 to 45 percent of profits, would run the casino while the investor would be responsible for equipping and furnishing the casino, overseeing security, and promoting the casino, particularly to tourists.

Many feared that the involvement of the state would negatively impact profits, but this has proved not to be the case. In fact, year-on year gaming income has increased instead, and many traditional tourist locations that had fallen into a state of disrepair have, with the help of the private sector, been refurbished. Today, around 80 per cent of gaming tax revenue comes from the casinos operating under the mixed system.

Beginning in 2013 the newly appointed head of the Uruguayan Casino Board Javier Chá initiated a number of renovations of state run casinos which had been recording record profits over the previous years.