The National Assembly in Venezuela has approved the first reading of a bill that could impact severely on the country’s gaming industry. Casinos, bingos, race tracks, lotteries, slot machines and any future gaming model will all face heavy taxation. At present under consideration is a 40% tax on winnings for casinos and bingos, 20% for racetracks and lotteries and 200 tax units (around US$3132) per slot machine. These taxes will be on top of other taxes payable.

With draconian severity the President of the Legislature, Nicolas Maduro, has said that for the moment the collection of the taxes would be approved but that the aim for the future was the total elimination of betting and wagering because of its moral dangers to the family. He also stated that the country must resist the pressure that would be brought about by the proposed changes in gaming law.

Gambling revenue in Venezuela last year was around US$1 billion, contributing US$3.8 million to state income. Under the proposed new law that amount would have been considerably increased to US$114 million. If the bill gets final approval it could threaten the viability of the gaming industry. Venezuela could see a potential gold mine in gaming tax revenue or it could kill the goose that laid the golden egg.
(E-06.08.06)

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