As part of the new gaming laws in Chile, the new Gaming Commission officially started business towards the end of last week. The GC's job is to supervise and audit all casino operations in the country from the revision and screening of projects right through the installation, administration and operation of the new casinos. This is the first operational step towards the implementation, regulation and growth of the Chilean gaming industry, which generated tax revenues in 2004 of around US$11 million from seven existing casinos in the country.

Francisco Leiva Vega was named Superintendent of the Gaming Commission by appointment of the President of Chile on February 1, and has a civil engineering degree from the local Universidad Catolica, and an Economics MA from ILADES Georgetown University in USA. Leiva Vega was a junior minister in the country's Exchequer from 1993, and was the officer representing the Ministry during the gaming law process, which was approved at the beginning of the year.

Leiva Vega, as the new GC Chief will oversee the application of the new Casino Law, which is the first one for the sector in the history of the country, and he commented that: "The law is very clear in its emphasis on regional development, as casinos generate employment, and help create tourist infrastructure for the regions, which through the local councils have shown great interest in casinos for their localities. However, I would like you to understand that from the word 'go', the GC is not betting on the local councils, but will study and investigate from a technical viewpoint every casino project."

The Gaming Chief stated that the first part of the process for candidate projects will finish in August, and starts with "Stage I: Declaration of Intent of Projects", which will close on July 5. Private investors have a 60-day term to act in Stage I of the proceedings for one or more casino projects, stating the communities that interest them. Leiva Vega insisted "It is mandatory that all projects are declared so that they may formally be accepted within the candidacy period, but investors are not under obligation to pursue any of these projects." The following step or "Stage II: Presentation of Projects" has a duration of 30 days starting on July 6, and closing on August 4. After this, the GC will screen the interested companies through a process that contemplates two different and complementary programmes for the prevention of money laundering. At the end of this process, the project will be evaluated in light of the current legislation.

Casino licensing stage
At the end of the process of pre-evaluation by the GC, this organization will present the approved projects to the Superior Council of the GC, which is the body in charge of assigning the casino licences. Leiva Vega said: "We have several months left to know how many casinos will be added to the seven already operating in Chile, because the candidates' process is complex and technically severe, and this needs us to ensure that we have before us an opportunity for regional development and not a risk".

The Superior Council has been assigned exclusive powers to authorize casino operations, gaming licences, and other gaming services needed by the industry, in relation to the proposals presented by the Gaming Superintendent, who is also the Executive Officer of this body. Chile’s gaming law establishes that the GC may authorize up to 17 new casino licences, as indicated by the law.

The GC Chief has stated that as the gaming sector is about to expand in the country, his organization will take care to make use of every legal means so that the gaming industry continues its current profile that keeps it well away from any suspicion of "money laundering", having public safety and national security as exceptional considerations when authorizing any of the 17 casino operations.

There is interest from a number of gaming companies, who are getting ready casino projects for many localities in Chile, and foremost amongst these are the local operators AM Corp, which owns four casinos in the country inclusive of Casino de Vina del Mar, International Thunderbird Gaming from USA, Latin Gaming from Panama, and the Spanish operators Cirsa and Egasa. (E-05.09.05)

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