To some analysts it came as no surprise to see the Chilean President Ricardo Lagos approve the Chile Casino Law, and order its publication in the Official Gazette. The piece of national legislation has now become Ley no. 19.995 Ley Marco de Casinos.

We have been reporting, starting with our trial issues way back in August last year and in different media for the past couple of years, on the progress of the Chilean gaming law. It became evident that, after seven years discussion, the Chilean legislators would give their casino law project a sustained push to get it approved sooner rather than later, but these past few months have been a nail-biting affair. It had appeared that everyone was supporting the gaming law as it sailed through the parliamentary commissions and the Lower House, where a majority approved it. Then, the Senate decided that they could not agree on three or four points, and rejected the law.

At this point the Executive rolled up its sleeves and the President decided that enough was enough. This was a piece of legislation necessary for regenerating the economy of the country's regions or states, and the installation of casinos promised new and fresh investment. In the aftermath of the Senate snub, President Ricardo Lagos used the veto powers of his Office, and returned the legal project to the Upper House for ‘urgent’ reappraisal. At the same time some parliamentary members, such as Representative Pedro Araya and Senator Carmen Frei, urged the doubting senators to compromise on some aspects of the law and to get it approved.

The Senate met and after some minor amendments the law was passed almost unanimously. It was then forwarded to the Constitutional Tribunal for the legal process to be completed. When the constitutional institution issued their recommendation and approval last week, most people were expecting the Executive to take at least two weeks to publish the law but, in a matter of days, the President finally gave it the country's seal of approval, and the law came into effect.

The legal project, which was initially presented to the Chilean Legislative in 1999, will permit the licensing of a total of 24 casinos in the country, with a minimum of one and a maximum of three per region. However, the Metropolitan Region, where the country's capital Santiago is located, is excluded from the new gaming law. As there are already seven existing casinos in the country, a rush will follow to get casino complex projects approved for the 17 outstanding licences.

Although there was a provision to have the new law coming into effect within 120 days, now it will be July by the time the new Casino Control Commission will be in place. Representative Pedro Araya commented: "The Commission is a new controlling body that needs some time to get going in an operating capacity. Also, the law needs its regulations and the appointment of the members of the Gaming Judicial Council - Consejo Resolutivo. The most important factor is that the law has been published, and the dream that Senator Frei and I defended for so long has become a reality at last."

There are a number of local and foreign companies interested in opening casinos in Chile, and some of them have already advanced projects ranging from US$20 million and upwards. The projects will be presented to the local governments for evaluation, but it will be the responsibility of the Gaming Judicial Council to issue the gaming operating licences. It is now thought that some of these projects will receive the green light before the end of the year. (E 01.10.2005)

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