Ecuador: Casinos ask government for an extension to continue operating

Businessmen asked President Rafael Correa to be granted an extension so casinos can continue operating in Ecuador, due to the fact that their companies “have complied rigorously all the conditions and demands at a work, social and tourist level, with SRI and other obligations”.

Unlike Casinos Jockers and Montecarlo, Plaza will not appeal once more the extension demanded to the government, however, César Ron, manager of Hotel Casino Plaza, explained that, if the right to reopen casinos is granted, his casino has more rights because it is Ecuadorian, it means that they will claim to receive the same treatment.

Ron said that the 300 machines and 20 table games that are part of the necessary tools and equipments for casinos are being negotiated with neighbouring countries Colombia and Peru. "We will continue investing in Ecuador, maybe we will open a luxury restaurant", added the businessman.

Pedro Sánchez, from Casino Montecarlo and Salvador Díaz, from Jockers, explained that these gambling venues are a source of incomes for the hotel and have not recouped their investment yet.  Besides, they affirmed that they will need two years and three months, approximately, to "leave the country satisfied, without any economic loss".

Sánchez said that he pays Hotel Mercure a rent that fluctuates between us$ 800,000 to us$ 1,000,000 a year as any other customer. Díaz commented that it has reduced its number of employees from 125 people to 102. "We are a company totally different to the hotel and manage our own staff”, he added.

Regarding employees that worked on the installations, Ron explained that it does not exist a rule or a law that says that the employees of the business that have been closed can continue working with a new contract, therefore, after the company pays the mandatory compensation for unjustified layoff, it cannot hire them again.

Richard Espinoza, Minister of Labor Relations, said that there are "us$ 4,500,000 on the account of the Ministry for the compensation of the almost 1,700 workers on legal casinos”, who will have to enter in the process of job retraining in order to have other employment opportunities.

Santiago León, Minister of Production, indicated that casino machines will have to be exported because "It does not have sense that they are in the country, because the activity will be illegal from Saturday”.