With 2010 growth projected at over 15% higher than in 2009, the Director of Casinos in Uruguay, Javier Cha, commented that the casinos could finance an Emergency Plan. In 2009 the country’s casinos made in excess of US$174 million with profits of US$62 million. Half way through November the Casino Directorate announced that revenues had already exceeded 2009 figures.

Cha said, “The aim of the Directorate is for casino profits to rise year after year, to reach US$100 million a year by 2014. The amount collected in tax from Casinos has a direct relation with the earnings growth of Uruguayans and we are taking some measures to modernize the gaming salons.”

In Uruguay 90% of tax collected from state casinos goes to state coffers and the rest to a series of organizations supported by the casinos, such as the Heritage Commission and the Olympic Committee. However, there exists a new investment model whereby the private sector can invest in casinos in a mixed form, sharing proceeds with the state.

There exist eight casinos that are working in conjunction with the private sector, including the legendary Conrad Casino in the seaside resort of Punta del Este. Here the casinos Nogaró and the Mantra also function but in the mixed format. Last year the tender for the Hotel Carrasco was finalized, with the winner announced as the Spanish-French consortium Codere-Sofitel.

To date there are other casino projects in Uruguay with mixed investment. In this format the investors equip the casinos, which are then operated by the State Casino company with a percentage of the profits returned to the investors.

Hotel San Rafael is one of the most prestigious and well located properties in Punta del Este. It is in the sights of various national and international investors for refurbishment and equipping as a modern casino. With a value of more than US$32 million, there already exist proposals to make use of the enormous amount of land fronting the beach of Playa Brava.

One of the proposals seeks to finalise a multi-million dollar investment in a private casino such as the Conrad. The San Rafael property, opened in 1948, boasts 15,000 sq m of construction with 130 rooms, open and undercover parking, restaurant and grounds with pool and tennis courts. For ten years there was a private casino operation until in the 1990s it was closed under a resolution issued by the State Casinos.

It now appears that the spirit of expansion being adopted by the State Casinos could mean that the time is right for a new casino in Punta del Este. (E-12.15.10)

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