Chile is wagering on internet gaming to aid in recuperating from financial setbacks brought on by the COVID-19 outbreak. Francisco Moreno, the Assistant Finance Minister, declared that the administration will put forward legislation to automatically extend 14 casino permits scheduled to lapse in the current year. This prolongation will also empower these casinos to manage internet gaming sites. These sites will have rigorous location limitations to guarantee they predominantly serve Chilean residents. Moreno stressed the significance of this action, stating that the renewal process shouldn’t proceed under adverse circumstances that could influence municipal incomes for the subsequent 15 years.
As a trade-off for the internet gaming rights and permit extensions, casinos will face a 5% rise in their comprehensive tax rate for a 12-month duration. This will elevate the total tax rate to 25%. This determination follows the government’s declaration that casinos would probably not be able to resume operations until September or October of this year.
The shuttering of all 26 of Chile’s casinos in the middle of March due to the pandemic has been particularly challenging for those overseen by local administrations. Numerous municipalities depend significantly on casino earnings, with some deriving over half of their financial plans from gaming.
The Chilean gaming authority, designated as the SCJ, has been pushing for casinos to be granted permission to function online. They hold the view that this is a feasible remedy, contingent upon the government enacting a robust regulatory and taxation structure.