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September 25, 2022
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Slots: short circuit between companies and government due to business legality

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The discussion about the bill that intends to regulate the online game in casinos led to a short circuit between members of the Ministry of Economy (MEF) and the owners of the slot machines installed in neighborhoods across the country. The new regulations are being discussed in the Chamber of Deputies –after being approved in the Senate– and in this area the crossroads of opinions on legality of slot activity.

Representatives of the Uruguayan Chamber of Entertainment (CUDE) raised their objections in Parliament against the bill and stated that they have been asking to be regulated for more than a decade, but the authorities have not raised their objections.

In the Finance Commission of Deputies they indicated that they pay taxes and that they are even willing to pay an extra canon if the business has more controls.
In addition, they affirmed that the activity is legal and therefore they win all the lawsuits that have been made against them. But that position contrasts with what they think in the Ministry of Economywhere they describe it as illegal.

One of the representatives of the union, Gerardo Dibbern, recalled in committee that since 2004 the CUDE has sought regulation and regulation of the activity.
“Time passed, 18 years passed. While we continue to wait, Parliament is going to consider the regulation of online gambling, an activity that, to a certain extent, is going to be a competition”, he said.

He stated that one of the reasons why the chamber opposes the project is political. “We are talking about a political reason because this project grants online gaming platforms basically to foreign companies, because you have to have a casino. We are not against competition or the installation of foreign gaming companies, but we want to be able to compete on equal terms”, he pointed out.

Another of the representatives of the Cude, Jorge Enríquez indicated that the formal companies that own slot machines make contributions to the Social Security Bank (BPS) and pay taxes.

He added that each machine was also offered to be online with the General Tax Directorate (DGI), through the Internet, so that the collection office would know what values ​​are being bet and how much the owners pay for each of the machines, in order to make transparent the tax that will later be paid.

Dibbern said that although the activity is not regulated, it is known that there are thousands of machines installed throughout the country.

“And to be an activity that moves money, that has not been regulated, that is not regulated by the national government and the municipalities, we see that there have been no complaints from the players, from the users, and that it has been developed in peaceful, public, continuous, absolutely transparent way,” he said.

The crossing with the MEF

The businessman continued to defend the business legality and repeated that state regulation is needed for an absolutely legal activity.
But that is contrary to the position of the MEF. Within the discussion for the online gaming bill, representatives of the portfolio also attended the Finance Commission a few days ago.

The general director of Casinos, Gustavo Anselmi, was clear on the subject. “Regarding slot machines, I want to say that it is clear that the position of the General Directorate of Casinos is that they are illegal; it is very clear in the law that they are illegal. In that sense, the Directorate General of Casinos He continues to make the pertinent complaints”, he affirmed.

The Undersecretary of Economy, Alejandro Irastorza, complemented Anselmi’s position. “It is an issue that we are going to deal with. We have also seen that there are slot machines in bars or half a block from a school; They are scattered all over the country. The way to address this issue is being considered, but it is not easy, since it is not an activity that has any penalty, ”he added.

Previously, Irastorza had also referred to the situation in another parliamentary commission, this time in the Senate. He stated that “the clandestine machines” are of great concern to the ministry.

“You have to legalize them. There are no penalties currently; They go in one side and out the other. They claim that they have companies and that they pay taxes. We are working on the issue. When he gave closure of casinos (because of the pandemic), the clandestine machines that were working without a problem, exploded and the whole world saw it. That is why we want to regularize that aspect”, he had expressed.

In the Finance Commission of Deputies in which the CUDE participated, the representative of Cabildo Abierto, Sebastián Cal, referred to the official comments.
“I am going to be very clear on this matter. I have seen conflicting positions from the Ministry of Economy itself regarding the neighborhood slot machines. In fact, some authorities who were present here said that they are illegal slot machines,” he maintained.

Slots: short circuit between companies and government due to business legality

“If the government authorities say that, and no one is in prison, it is because they are either not so illegal or there is a lack of control and a very large omission on the part of the State,” he added.

Dibbern replied that on the one hand, through the DGI, the Ministry of Economy collects taxes and registers companies.
“In other words, on the one hand, the DGI accepts that they be registered as a gambling game and collects the taxes and, on the other, the General Directorate of Casinos suggests that the activity is illegal. It is an inconsistency”, pointed out the businessman.

Then he mentioned the differences with the General Directorate of Casinos, reported that he made 58 lawsuits against the owners and, according to his account, he lost all of them.

Identification plate

One of the proposals made by the CUDE was that each slot machine have a identification plate. “If that machine had an identification plate, indelible, like that of a car, with which it could be registered in the State, the Ministry of Economy would know that a certain number corresponds to a certain machine whose owner is so-and-so,” he commented. .
This registry would have the result of “removing people who do not want to contribute.” “We are against that; if we go to a bar and see that there are 50 machines, we are against it, but there are people who do it, ”he said.

The members of the guild are not only dedicated to slot machines; also at pool tablesjukeboxes and foosball.
“What we want is that to place those eight and ten little machines, the pool, everything that can be in a canteen, the State controls it, supervises it and charges an extra fee, outside of the taxes that are paid,” he said.

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