President Chavez announces legislation for closing casinos, bingos and lotteries

VENEUELA: ZERO INVESTMENT PLAN

The news from Venezuela has come as no surprise, where the vociferous political ranting of a political leader with a clear hegemonic agenda proposes closing down all gambling houses and businesses in the country. Although it is not difficult to pound the keyboard criticizing President Hugo Chavez’s more outrageous messianic messages, the industry must surely rise in anger at proposals to terminate regulated gambling in Venezuela.

In his weekly broadcast Chavez talked about the construction of “a just society and a New Man”. High ideals, indeed, but this must also begin with a high commitment to compensate with justice all legal gambling businesses in Venezuela that will be closed down by forthcoming legislation. Because this is what New Man would do in a just society. The South American continent has had its fill of caudillos, tin pot dictators and banana republic tyrants, who are yesterday’s men.

Surely New Man does not gratuitously impose fines, closures, jail terms, seize property or cause destruction without just cause. Nor does he use and abuse tax collectors, the police, judicial system, or the legislative machinery of a country to bring about highly questionable changes.

The projected legislation that will be presented to a sycophantic National Assembly in Venezuela to end with the gaming industry in that country could well be the beginning of the end of an ambitious political plan. It is not the matter of doing away with gambling, because the industry does not have popular support, but it will be a first totalitarian adventure that will be followed by others, until the people say enough is enough.

According to one of the country’s collector of taxes, the proposed constitutional reform to ban gambling will “provide measures against commercial practices and usury, especially those such as gambling”. Such a broad swipe against the practice of commerce and trading surely includes high earners like the oil industry, banking, insurance, imports and other wholesale and retail merchants.

According to the current tax collection drive called Zero Evasion Plan, the Venezuela tax authority Seniat, has been doing a fair job collecting outstanding taxes and closing illegal gaming houses or those with deficient licensing permits. In a country with inconsistent gaming legislation, Seniat’s job is difficult but, to its credit, dealing with illegal gambling is something positive for the industry and the country.

Instead of policies to reinforce existing gaming legislation in to improve the sector, President Chavez has decided to follow biblical perceptions to close the doors on the gambling industry and investment in Venezuela, and this will be the beginning of a zero investment plan for the country. Man was never an island in Shakespeare’s XVI Century, and New Man is not an island now.
(E-09.26.07)

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