Chile land-based casinos revenue drops 3.7% year-on-year in Q1
Land-Based Casinos in Chile Experience Revenue Decline Amid Stalled Online Regulation
Recent insights from the Superintendency of Gaming Casinos (SCJ) reveal a concerning trend for the land-based casino sector in Chile, with gross revenue declining by 3.7% year-over-year in the first quarter of 2024.
The 25 licensed casinos collectively reported revenue of CLP 145.19 billion (approximately $154.3 million) for Q1. While this marks a 1% nominal increase, the real revenue decline becomes apparent when adjusted for inflation, highlighting a 3.7% drop relative to the same period in 2023.
These revenues were generated from nearly 1.8 million casino visits, reflecting a further 3.7% decrease compared to Q1 2023, with visitors spending an average of CLP 80,079 per visit.
During this period, the casinos contributed CLP 51.96 billion in taxes, which is a 3.4% decrease in real terms. Among these contributions, specific gaming taxes accounted for CLP 22.37 billion, which is distributed evenly between regional governments and municipalities to support local development projects. Additionally, CLP 21.6 billion was raised through value-added taxes, along with CLP 8 million generated from entrance taxes to gaming rooms, both of which funnel into Chile’s general funds.
According to H2 Gambling Capital, the future of land-based gaming in Chile appears promising, with projections estimating annual revenue could reach $792.3 million by the end of 2029.
Land-Based Casinos: A Pillar of the Chilean Gambling Landscape Amidst Online Regulatory Delays
Chile boasts a rich tradition of land-based gambling; however, there is mounting frustration over the sluggish advancement of online regulation, with a proposed iGaming bill currently stalled in the Senate.
As online avenues remain elusive, land-based casinos continue to serve as a critical component of the Chilean gambling industry. Cecilia Valdés, President of the Asociación Chilena de Casinos y Juego, emphasizes their essential role, stating they are a “key driver” of local economies.
Valdés reports that land-based casinos contribute approximately CLP 195 billion in taxes annually. They also create over 8,000 direct jobs, alongside thousands of indirect employment opportunities in related sectors such as tourism and hospitality.
“The impact of these establishments extends far beyond gaming. They act as engines of economic growth, formal employment, and regional development,” Valdés elaborated in an interview with iGB. “These casinos have played a vital role in urban and tourism development across several regions, actively positioning various destinations throughout the country.”
Importantly, Chile’s unique regulatory framework mandates that every casino must include complementary facilities—such as hotels, restaurants, and theaters—fostering comprehensive urban development within the cities and municipalities hosting these establishments.
In conclusion, while the current metrics depict challenges for the land-based casino sector in Chile, their intrinsic value in economic development cannot be overstated. The relentless push for a well-regulated online gaming market remains a goal, but until then, land-based casinos will continue to be the backbone of this vibrant industry.
