internationalcasinoreview July rise for Chilean casinos News
Despite the transparency and modernity of
Chilean casinos, they still have a lot of work to do to persuade a
significant section of the public that they are welcoming environments designed for entertainment, a study has found.
SOUTH & CENTRAL AMERICA
Gross gaming revenues at the 15 2005-Act Chilean casinos rose by almost 6.5 per cent in July over the previous month, driven by an increase in visitors. Together they generated US$48.6m (E35.6m) from 596,000 visits: average spend fell by 4.3 per cent. Slot machines generated $38.4m (E28.1m). GC Monticello (pictured) retained the largest market share at 28.9 per cent. In the year to date, GGR from the casinos reached $296.1m (E216.7m).
Bariloche mayor vetoes
taxtennis ARGENTINA
The mayor of Bariloche in Rio Negro, who is trying to extract more money from the town’s casino, has once again vetoed a council move to give the operator a discount on a four per cent commercial income tax to cover health and safety inspections that the mayor wants to impose.
Chilean public believes casinos are ‘elitist’
amassingmarkets CHILE
A new report has said that casinos in Chile need to strengthen their posi- tion as entertainment centres and do more to improve their reputa- tions after a survey of the public found that they were considered elitist.
The report from consultants
Visión Humana, the second such study into the reputation and image of casinos in Chile, found that people still have ambivalent feelings towards them. They recognise the contribution to economic develop- ment that casinos make in the areas where they operate, however, the old prejudices still exist. Patricio Polizzi, general manager
of Visión Humana, said: “It’s a rela- tionship somewhere between fear and love. Of the 55 per cent who
said they would attend a casino, only a percentage of close to 50 per cent are happy with the industry, which is quite low: normally one would expect people to be more benevolent in their ratings of an entertainment industry.” On the other side of the coin, 41 per cent of respondents said they would definitely not go to a casino, with the major reason being that casinos are perceived as being “very elitist”. Polizzi said: “Whether it’s because people have to pay to go in or because they are places only for people with money, the willingness to go to a casino has a negative rela- tionship with socio-economic status: the lower the socio-economic status, the less likely they are to visit a casino.” The report found that the entrance fee for casinos was the
biggest barrier to attendance at a casino - 76 per cent of those who do not go gave it as a reason. 57 per cent cited not knowing how to play the games, 51 per cent thought they would have bad luck and lose their money and 44 per cent said they were afraid of becoming addicted. Among those who do attend, 73 per cent said they went for the enjoy- ment of their time there. Far behind at 34 per cent was the prospect of making money. The games people enjoy most are bingo at 33 per cent, roulette at 23 per cent and poker at 18 per cent. The report sets out a series of
challenges for Chilean casinos, including strengthening the posi- tioning of casino as entertainment centres rather than gambling halls. “To link casinos not just with gaming but with entertainment is a concept that will attract more fans,” said
Polizzi. The industry also needs to widen its appeal to the mass-market: “They need to build a position that makes it clear that casinos are for everyone, not just people in tuxedos.”
Another major challenge is to dilute the prejudices against casinos, he added. “Chile has a casino industry that is world renowned for its transparency, for the way it has been legislated and for the control exercised by the Superintendent of Casinos, yet there is still a heavy prejudice against it.” Finally, casinos should do more to
standardise service levels, said Polizzi. “People going to casinos expect to receive a certain standard of service but it is very different in different places. There are casinos where there is a perception of very bad service and others where the perception is very good.”
Illegal machines destroyed in Lima
formalprocess PERU
More than 870 machines from illegal slot operations were destroyed in the Peru- vian capital Lima in Septem- ber: now that a legal framework of linked machines has been set up, the government is continu- ing its effort to eliminate ‘informal’ venues. The minister of foreign
trade and tourism, Jose Luis Silva, took part in the
26 October 2011 • south&centralamericanews
872 machines were destroyed in the latest effort to crack down on illegal slot venues in Peru
destruction of the machines confiscated by the Direc- torate General of Casinos and Slot Machines, the regu- lator.
He said: “There are 872
machines that have been confiscated in informal casinos, the vast majority of which have been found in cellars or small shops designed to induce young people and children to play games of chance. The seizure and subsequent destruction of these machines is part of
the ministry’s ongoing control work… The result is that since the process of for- malising the sector began in 2006, 9,215 machines have been forfeited and a total of 8,089 destroyed.” He added: “The formalisa-
tion process has allowed us to gain better market control of gambling halls…and to increase the taxes collected, which in 2011 is likely to reach 200m new soles (E51.2m).” According to the minister
there are currently 688 slot salons and 12 casinos oper- ating legally in Peru, but there are still very many loca- tions operating outside the regulations: three have been closed so far this year. “We will get rid of the illegal venues because, unfortunately, these compa- nies give no security in terms of payments and contribute nothing to the treasury, in addition to inducing young people into problem gam- bling,” said Minister Silva.
The council voted by a large majority to require the casino instead to pay a monthly lump sum of 80,000 pesos (E13,800): Mayor Cascón’s tax would have raised up to four times as much.
Signing the veto, the mayor said the council’s decision was “in flagrant breach of equality before the law” and goes against the tax regula- tions currently in effect in the town. He also said the special tax the council wanted would have given the casino a “priv- ileged position” that would not have been legally accept- able.
casino tax reduction
Bariloche’s mayor Marcelo Cascón
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