Chilean casinos report sharp increase in October profits

The SCJ's report gave further good news for the young industry, documenting both an increase in the number of visitors and in the average amount each one spends. The larger numbers are attributed to the public's growing familiarity with casinos and their games, said SCJ chief Francisco Javier Lieva: “Chileans now have a better understanding of what a casino is and therefore are more interested.”

Casinos were only legalized in Chile in 2005 (ST Dec 14, 2005) and there are now 15 different establishments across the country, the majority opened in 2008. Three more are under construction and plan to be open next year. So far, owners have spent us$ 743 million to establish the gaming industry.

October visitor numbers totaled 488,300, which was an increase of 9 % on September's. The average person spent us$ 61 a visit, up from the previous month’s average of us$ 56. So far this year 3.3 million people have visited casino's, spending on average us$ 58 per visit.

Total industry profits for the first 10 months of 2009 are us$ 171 million. As most of the new casinos only opened after July last year, 2009 is the first full year in which figures can be recorded for the industry.

While Chilean casino industry is big business, not all of the money it generates stays in the country. Nearly half of the 15 casinos currently operating are either part or fully owned by foreign companies.

Chile's biggest casino is Montecello, located near San Francisco in Region (VI) just south of Santiago. When opened last year it was billed as the largest single private investment in South American leisure and entertainment industry.

Based at the Mostazal Resort, the casino has over 100 tables and is joined to a shopping mall and amusement park. So far this year, Montecello accounts for over 30 % of the profits and visitor numbers in the industry's total, making profits of us$ 8 million in October alone.

The casino is a joint venture between three international firms. Majority holder South African company Sun International reported income totaling us$ 1 billion for 2008.

Austrian firm IGGR and French company Novomatic are also partners in the venture. IGGR employs 200 people across 12 casinos in four different countries, including Ecuador. Novomatic reported income of over us$ 3 billion of 2008.