Since the start of the year, divergences in various laws concerning casinos and bingos in Venezuela have created confusion in the gaming sector. One week ago the newspaper El Nuevo Día announced that the new Gaming Tax law established a levy of 50 ‘unidades tributarias’ (UT) for each slot machine, whether or not operational. Gaming tables pay 15 UT plus municipal taxes.

Yesterday another paper, El Informador, announced that the regional Central West office of SENIAT, the taxation authority in Venezuela, had initiated a tax control system for casinos and bingos, in order to comply with the new law. In Barquisimeto they are examining 300 slot machines with a view to optimise tax collection.

Regional Director Arminda Reyes is reported to have said that under the Gaming Tax law bingos and casinos were outside the application of normal tax and that the machine tax is for 40 UT and 120 UT for gaming tables. This means a cost of US$700 for every machine and US$2,100 for each gaming table.

Although the figure is for US$700 a month, or over US$23 per day, this is preferable to the 50 UT published by El Nuevo Día. Other figures that have been published include the unreal US$100 per day per machine, demonstrating the confusion caused by the Venezuelan government at the hands of misinformed politicians and pseudo socialists.

Whatever level of taxation is proposed by SENIAT, it will remain a difficult task for the authorities to collect the taxes. This is because set taxation levels are not usual for the gaming industry, which is accustomed to being taxed on gross revenue.
(E-08.28.07)

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