The local government in Montevideo, capital city of tiny Uruguay in South America, has started the process to allow private investment in the region's Municipal casinos, which have been losing money for the past six years. In a business plan to propose the changes, government leader Ricardo Ehrlich has reccommended the changes to the Economic Development Regional Unit, including voluntary retirement for casino and administration personnel.

The biggest problem with the administration of the Municipal casinos in Montevideo has been a dearth of modern skills and operational systems, owing to the burocratic format whereby aged civil servants are entrenched in operating positions working without the skills neccesary to operate modern casinos. So far, the authorities have made cosmetic changes in the running of the Municipal casinos, and these have not been able to stem the run on losses at the properties.

For over a year, since the losses were reported by the Montevideo government, we have sugested the privatization of the Municipal casinos to modernize and improve the gambling houses. It seems that at last some action to this effect is about to take place. In Uruguay, private investment in the Casino in Punta del Este and the Maronas race track have seen the emergence of modern and profitable gaming operations, which have benefitted the local economies. (E-12.22.06)

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