Chilean Casinos Open Fully for First Time Since February 2020
Chile’s gambling authority, the Superintendencia de Casinos de Juego (SCJ) recently released a new report covering earnings and tax contributions for Chile’s casinos. The report looks at the month of August 2021 in detail, a significant time period as it is the first full month where Chilean casinos have been fully reopened since February 2020, before the start of the COVID-19 pandemic in the country.
Chile’s gaming authority reports high earnings in the first month that casinos have been fully reopened since February 2020. ©Frank Busch/Unsplash
A Look at the Numbers
The SCJ report shows that Chilean casinos contributed a total of CLP $13.24 billion ($16.0 million USD) in tax, for the month of August 2021. This number comes from all reopened casinos, the exception being the Municipal Casino of Natales, which had not yet reopened.
Compared to July 2020, this shows an impressive leap. In the previous month, Chile’s partially reopened casinos contributed only $8.1 million (USD) in tax, so about 50% as much as they did in August 2021.
This tax contribution was based on the casino industry’s gross gaming revenue (GGR) of CLP $40.8 billion for the month of August. In the report, SCJ commented that this month saw a rapid increase compared to the report for the month of July. This is because 25 of Chile’s 26 casinos have finally reopened and operated without disruption, which is a significant step for Chile’s gaming industry since the COVID-19 pandemic began.
The report included a year-on-year comparison, using August 2019 rather than August 2020 due to all casinos being shut during that month. Compared to August 2019, casinos earned 92.8% of what they had during the same month this year.
This is not a bad result considering that some casinos still operate at a reduced capacity to prevent further outbreaks of the COVID-19 virus. In comparison to 2019, casinos received only 62.6% of the number of visitors this year.
To further break down the figures in the report, a total of CLP $6.08 billion in tax came from casinos operating under Law No. 19,995. Further tax included VAT of CLP $5.73 billion. Income tax accounted for CLP $1.38 billion.
From the total tax contribution, a certain amount will also be delegated for the regional and municipal governments where the respective casinos are located. These will receive payments from the month of August by the end of October.
Out of all of the 25 open casinos, the Sun Monticello was the one to contribute the most money to tax in August 2021. It generated enough income to account for CLP $797.8 million for its local government, plus the same amount for municipal tax.
Next up was Enjoy Viña del Mar, which contributed CLP $324.2 million, two times, to its regional and municipal taxes respectively. Third was Marina del Sol Talcahuano, contributing CLP $302.1 million in payments, two times, once for either tax.
A Positive Trend for Casinos in Latin America
This latest news from Chile follows a pattern of good tidings for Latin American casinos. Uruguay recently announced it will reopen two important casino resorts in anticipation of reopening its borders to tourists in November. In Mexico and Peru, regional governments have also been addressing changes in the COVID-19 pandemic risk by allowing casinos to reopen with increased capacities and new hygiene guidelines.
