Colombia: Codere to build a us$ 10 million casino in Bogota

The company calculates that around us$ 139,9 million that illegal operators do not tax currently in games such as slots, table games and bingo halls, can be allocated by the new entity to the health sector, if it controls it properly and if the activity is more developed.

“We see it as a measure that retakes the confidence of investors, because, with previous regulations and the increment in taxes, we even had thought about redefining the operation in the country, because it is the biggest of the company at an international level”, notes the President of Codere Colombia, Diego Navarro Reyes.

On the contrary, the executive perceives that, with Coljuegos, the games of chance activity will have more development, because, depending of the Ministry of Economy, it will have a technical nature and a structure that promotes the development, innovation and professionalization. He adds that it will benefit investors in the exact measurement, and will elevate taxes for the health sector, due to a growth in income of the business. “It gave us confidence and we wish to maximize investments, because the government gave a new focus to the regulatory entity, based in other international entities”, explains Navarro.

That’s why the president of Codere Colombia considers that no changes should be made on the current tal level, although tax level is increasing for the health sector due to an increment in the incomes of the company.

He affirms the operational income of Codere Colombia last year was of us$ 40,3 million, with a 10.7% increment compared to 2010, when they totalized us$ 36.4 million. While Ebitda increased from us$ 7.1 million to us$ 8.2 million, with a 15.5% increment on that period and the evident growth in business profitability. The market share of the company last year reached 11%.

With regards to investments, last year us$ 9 million were allocated to casino openings, improvements, gambling venues and development of exclusive gambling halls in popular sectors. And the transferences in royalties and VAT to the Treasury totalized us$ 13.4 million.

For this year, the investment of the company will be us$ 10.5 million in added value and new projects for popular sectors, under the brand Fantasía Royal and exclusive projects such as Crown Casinos, like one on the T zone in Bogota, which will be the largest of the country.

However, a big amount of the investment will be allocated to the new Casino Royal project in Bogota, which will demand resources for us$ 10 million. The firm is changing from an operator of small slot halls to exclusive gaming halls, as it is happening in other countries in the region.