The catastrophe that hit Chile on 27 February this year has badly affected the municipalities in the areas where the earthquake caused the most destruction. They have suffered not only from material damage but also the loss of revenue following the forced closure of local casino operations. According to information from various municipalities, the amount lost from the special casino taxes that contribute directly to municipal programmes is some US$33.7 million.

The community of San Francisco de Mostazal, where the Monticello Grand Casino & Entertainment Centre is situated, has lost around US$22.5 million during the four months the casino had been closed. Chile’s largest casino, which has now restarted operations, was contributing about US$7.5 million each month to the municipality, a considerable part of the budget, and several social projects have been suspended because of lack of funding.

In the region of Talca the earthquake has left a hole of nearly US$282,000 in local finances after the casino was closed. Gran Casino Talca is scheduled to reopen on 22 July but the importation of 30 slot machines to replace the ones destroyed is still in process. Officials in the region of Talcahuano were anxiously awaiting the re-opening of the Casino Marina del Sol at the end of June. Talcahuano was losing some US$860,000 each month the casino remained closed.

It has been suggested that the government’s department of Regional Development should make good the loss of casino taxes suffered by municipalities in the wake of the earthquake. However, this would likely prove problematic and the best bet for the municipalities concerned will be a prompt and successful resumption of casino operations. (E-07.15.10)

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