The Colombian gaming regulator, Coljuegos, presented a draft resolution that aims to regulate the legal operation of electronic slot machines (EGM) that currently operate without authorization in establishments whose main commercial activity is not the operation of games of chance.
The main objective of this initiative, which has a national scope, is that those who already operate these games begin to do so within a legal framework to offer a safer game experience for the users and to reduce the loss of income to the state coffers through tax collection.
When announcing the resolution, the entity informed that it took into consideration a study by Fedesarrollo titled “Characterization and estimation of the market of unauthorized localized EGMs of games of chance in Colombia” (2018). It states that “due to the high cost of the machines, the level of capital required by the prohibited EGM business is high.”
The report suggests that this also increases the risks in case of seizure or destruction by the authorities. “However, certain operating mechanisms allow small independent entrepreneurs (shopkeepers, owners of billiards and drugstores) to enter the business,” it adds.
The same study estimates that the size of the unauthorized gaming market in Colombia regarding EGMs “ranges between COP 39 to COP 945,000 million, that is to say, a maximum of 34.3% of the total market is illegal.” This could translate into a total of 50,000 unauthorized gaming machines in Colombia.
“For every ten such elements, four are operating illegally, costing the Nation around one billion pesos a year. It is estimated that for this year that number oscillates around 90,000 units”, Coljuegos detailed.
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Descarga aquí el documento:https://t.co/lm1oy6kVRu pic.twitter.com/hVN0TK5jdN
— @ColjuegosCo (@ColjuegosCo) December 7, 2023
The project details that those who intend to access the benefits of the resolution must first certify their status as a legal entity and then, the entity will take into account the principle of opportunity and the promotion of peace to select the operators that will be authorized.
In addition, they explained that only those legal entities that do not have and have not had concession contracts with Coljuegos will be able to apply. Once the process has advanced, the regulatory entity will announce the schedule, procedure, and other financial requirements for future operators who wish to access a contract.
Lastly, the document warns that the installation of 80 machines per operator will be allowed. However, each gaming hall may have a minimum of one slot machine and a maximum of four, depending on the number of inhabitants in the jurisdiction where it is located as well as the space available for its disposition.
Regarding prizes, the resolution states that each prize generated from the operation of the gaming elements with a rate of COP 0-500 and from COP 500 onwards may in no case be higher than 196 UVT. Each prize generated from the operation of the interconnected progressive gaming elements may not be higher than 392 UVT. In addition, they must be designed and implemented in such a way as to guarantee players a minimum return of 82.5% and comply with responsible and safe gaming regulations.
With the publication of the project, a public comment period was opened and will be extended until Thursday, December 14. Once this stage is concluded, the proposal will continue to be evaluated by industry players, the government, and other stakeholders, with a 12-month deadline for implementation with the possibility of extension.
