Guatemala seeks to legalize casinos

“We estimate that it is an activity that can be regulated, as in Panama, even in South America, where an economic and financial activity is generated”, affirmed Barquín, who underlined that the proposal may succeed “if money laundering ins controlled.” The officer said that he is not boosting the project and that it was Rayo who demanded its opinion.

The Head of SIB indicated that the Administrative Division of Special Verification (IVE) has made investigations in legal lotteries and bingo halls, and in some cases “there have been suspicions of money laundering and reports have been presented before the Public Ministry.”

Rayo affirmed that just four lotteries are authorized in the country, however, “there is a huge number of casinos, lotteries and other games of chance operating ilegally”.

With regards to the reasons to regulate this sort of games, the congressman explained that the Department of the US Treasury performed a study on the matter and revealed that “us$ 183,963,000 are laundered in Central America with these activities”. The countries with more gaming activity in the region are: Panama, Costa Rica and Guatemala.

He points that “controls must be put, so they pay taxes and they can be reported in case they commit money laundering”.

The Ministry of Government, Carlos Menocal, was consulted on the casino legalization project and he answered: “It cannot be dome; I do not know the project, or who is presenting it. Games of chance are violent and dangerous.”

When asked more details, Rayo explained that he has not ellaborated the final project. “I am in the process of obtaining queries, consensus and opinions”, he said. Then he added that he is improving the draft and expects to conclude it in a month.

Representative Rosa María de Frade, of the political party Bancada Guatemala (BG), who also integrates the Commission of Economy, underlined that although games of chance are banned, they are practised in the country and represent us$ 122,642,000 annually in money laundering”.

The representative added: “Legalization is important in order to set controls and set tax payment. IVE must establish the mechanisms to perform the investigations.”