Chile’s Casino Industry Sees Decline in Tax Contributions and Visits in October 2023

In October 2023, Chile’s casino industry witnessed a notable shift, with the 25 operating casinos contributing a total of CLP 15,997 million (USD 18.2 million) in taxes. This figure marks an 11.2 percent decrease in tax contributions compared to the same month in the previous year, highlighting a trend in the industry’s financial performance.

The Chilean casino industry experiences a significant downturn, with a year-on-year decrease of 11.2 percent in tax contributions, totaling USD 18.2 million in October 2023.

This decline was detailed in a report by the Superintendency of Gaming Casinos (SCJ), chaired by Vivien Villagran. The breakdown of the tax contributions includes CLP 6,980 million (USD 7.9 million) allocated to regional governments and municipalities for development projects, CLP 6,742 million (USD 7.7 million) in VAT on gaming income, and CLP 2,275 million (USD 2.6 million) from entry taxes to gambling halls, contributing to the nation’s general funds.

The allocation of these funds, particularly the specific gaming tax, is crucial for regional development and community projects. However, the decrease in tax contributions reflects a broader trend within the industry that stakeholders and policymakers need to closely monitor and address.

As industry observers and participants, it’s important to stay informed about these changing dynamics within the Chilean casino sector. Understanding the implications of these financial trends is vital for strategic planning and policy formulation.

In addition to the tax contributions, the report sheds light on other key aspects of the industry’s performance. Gross gaming revenues for the 25 casinos in October 2023 stood at CLP 45,536 million (USD 52 million), which is 12.9 percent lower than the revenue generated in October 2022.

The decrease in revenue is paralleled by a reduction in casino visits. In October 2023, there were 542,179 registered visits to these casinos, marking a 14 percent decline compared to the same month in the previous year. However, it’s notable that the average expenditure per visit saw a real-term increase of 3 percent to CLP 82,544 (USD 94).

This comprehensive overview of Chile’s casino industry’s performance in October 2023, covering tax contributions, revenue, and visitor trends, offers critical insights for stakeholders. It highlights the need for adaptive strategies to navigate the evolving landscape of the gaming sector in Chile.