Following last week’s emergency meeting between bingo and casino operators and the head of the Venezuelan Inland Revenue (SENIAT), to discuss the new gaming law that was enacted at the beginning of July, it has been established that around 48,000 families will be affected by the possible closure of businesses through prohibitive tax measures. Earlier the head of SENIAT, Jose Vielma Mora, had practically accused operators of tax evasion when tax revenue fell in May and June.

The Gaming sector’s association in Venezuela, which represents over 85% of the nation’s gaming establishments, claims that the exorbitant new taxes imposed on each slot machine and gaming table make it impossible for most operators to continue. Next week the association plans to meet again with Vielma Mora to seek clarity on the new law and find a solution to what they see as an unjust law that requires tax of US$1,750-US$3,500 per machine per month.

One suggestion that has been made is to set different taxes for the different regions of Venezuela. Another suggestion is to make gaming tax a percentage of revenue rather than a set tax on each machine. On the tourist island of Margarita one company is going ahead with the expansion of its casino. Gaming operators there have always demanded a separate tax regime because the islands have virtually no other industry than tourism attractions. (E-07.25.07)

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