After causing disquiet amongst local casino operators, two Latin American countries have clarified previous statements made affecting their gaming industries. On the face of it, the announcements are good news for the legal casino industry in both El Salvador and Venezuela, but there are still elements of uncertainty. In Peru President Alan Garcia has already commenced his efforts to bring the whole gaming industry under legislation that will prevent the judiciary allowing some operations to continue functioning outside the regulations.

Over the last couple of weeks authorities in El Salvador have been waging a war of words over slot machines, describing them as illegal and a threat to public peace and mental health. The Ministry of Public Security has started to decommission slot machines in parks and plazas but is intending to finally remove even those in licensed casinos. On Friday the Attorney General appeared to back the legitimate casino industry when he said that their slot machines were legal as they were licensed. To remove them there would have to be a modification in municipal laws.

The pronouncement has not altered the views of the President of the Republic. Elias Antonio Saca continues to seek the removal of all slot machines in El Salvador, and he stated that there would be no discrimination between casinos and small operations, although legal measures would have to be adopted in order to prevent casinos from operating slot machines. Further south in Venezuela another President, Hugo Chavez, is also upsetting the casino industry.

Around the same time that El Salvador’s President was taking issue with slot machines, Hugo Chavez announced that his government would eliminate casinos and bingos. This was later changed to those operations not in 5-star hotels but still caused concern amongst the many workers in the Venezuelan gaming industry. In general neither the operators nor the tourism industry are taking heed but are awaiting an official and in-depth communication from the country’s executive powers before taking a position on the matter.

In both countries most of those with gambling operations wish to be included in a regulated industry. The payment of licence fees and taxes are considered a small price to pay to become part of a legitimate thriving business. However, both governments must consider the potential detrimental social impact against possible countrywide benefits in terms of jobs and tourism. The many people presently employed in casinos and bingos are hoping that El Salvador and Venezuela opt for tighter regulation and not prohibition. (E-02.05.07)

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