The Chilean gaming board has begun to submit what will be a monthly bulletin on the state of the gaming industry in Chile. In a brief summing up of the eighty years since the first municipal casino licence was issued, the bulletin goes on to state that during the second half of 2008 the new casino industry, regulated and taxed, will commence operations. In July eight casinos will be launched in seven of the Chilean regions, with another six opening during the first half of 2009.

One casino that was constructed under the new licensing laws was opened at the end of last year. The Mountain Casino at Termas de Chillán, one of the largest ski resorts in South America, has 100 slot machines including a bank with progressive, 14 table games and a 120-seat bingo. Initial figures for January and February indicate that the US$7.5 million investment is producing modest returns, although there was some growth in February.

Payment of the various taxes on gaming revenue amounted to 43.5% of GGR and this amount rose in February to 46% because of an increase in visitors. 0.07% of the Chilean monthly tax unit (UTM) is paid for each visitor that enters the casino, meaning that quality of play will have more to do with a successful casino business than visitor numbers. Although the first two months of operation are no real indication on the future return of investment capital, the tourist centre at Chillán is mainly seasonal.

Initial figures suggest that the investment in the first of Chile’s new casino resorts could take as long as ten years to repay. The licence has been granted for fifteen years but it seems that short-term profitability will be unlikely. Nonetheless, the casino is adding to tourist attractions in the area and increasing local employment – two of the aims of passing the new gaming laws in Chile. (E-04.16.08)

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