The South American nation of Chile is making a risky bet on internet gaming to cushion the financial impact of the coronavirus.
To aid casinos facing hardship during the global health crisis, Chilean authorities are putting forward legislation to automatically extend the permits of 14 casinos scheduled to lapse in 2020. This renewal would also open the door for these establishments to introduce digital gaming websites. These sites, however, would be bound by rigorous geographical restrictions within the country.
Francisco Moreno, Chile’s Assistant Finance Minister, emphasized the significance of this action, noting that the customary license renewal procedure shouldn’t proceed “under unfavorable circumstances that ultimately impact municipal revenue for the following 15 years.” The administration is pursuing a 5% rise in the total tax levy on casinos’ gross earnings – raising it to 25% – for the one-year extension timeframe.
This determination follows the government’s declaration that casinos might remain shuttered until September or October. All 26 of Chile’s casinos have been closed since the middle of March due to the pandemic. This has been especially challenging for casinos overseen by local administrations, as a substantial portion of their operational funds depend on gaming income.
The Superintendencia de Casinos de Juego (SCJ), Chile’s gaming watchdog, has voiced support for permitting casinos to function online, contingent upon the government establishing a comprehensive and potent regulatory and taxation structure.
