“The main goal is to widen the games of chance collection”

What was your first impression of the industry when you recently assumed your new role?

This is a sector with a lot of potential to generate resources. Colombia has a legal framework that favors the gambling industry in terms of not restricting the operation of different types of developments in the sector. However, the earnings that the state derive from games of chance are low compared with other regional countries. In Colombia, state earnings from games of chance are us$ 7.2 per person, while in Argentina, Panama and Chile the figure is three to nine times bigger.

In Colombia, much of the money made from the industry is channeled to Public Health, a sector with huge needs. The gambling industry in the country has not been dynamic or innovative; rather it has grown a bit stagnant. For example, the market of localized games is small compared with other countries in the region.

In part, this may be due to illegal gambling. Coljuegos has withdrawn more than 3,000 slots and has started dismantling processes once the legal process has started. The market seems to be responding to those efforts.

What personal mark do you want to leave at Colijuegos?

The main goal is to increase games of chance earnings and hence allocate more funds to improving the public health of Colombian citizens. Our challenge will be to develop the market so that the games of chance sector becomes more profitable both for the state and the operators. It is also crucial to ensure there is better information available with regard to the sector’s productivity, enabling us to design better public policies. It is also necessary to modernize the sector, not only with new games but also with the introduction of high standards of operation.

We will continue the fight against illegal gambling and we will focus more on the control process of authorized operators in order to drive up state earnings.

How do you see the current situation of gambling venues, lotteries and betting in Colombia? What are its strengths and weaknesses?

Coljuegos administrates 378 operational contracts of localized games, especially casinos, with 2,850 gambling halls in more than 360 councils. Innovative games are two additional contracts: Baloto and Súper Astro Millonario.

These two types of games (localized and novelties) represent the 49% of the benefit that the state collects on games of chance. The other half is collected by the sale of lottery and chance.

However, in research recently undertaken by Coljuegos we concluded that casinos and bingo halls have a low attraction for betting consumers in the country. That is where the improvement of standards and modernization of the industry have to play a key part. These two factors, together with increased control, must increase earnings from these types of games.

Territorial games such as lotteries and chance, on the other hand, have a great response from consumers, especially chance. However, it is necessary to strengthen the surveillance of the state on the allocation and operation of those games to assure eligible licensees to comply with their duties with the State and guarantee transparency in the gaming operation facing the consumer.

In general, the existing gaming portfolio in the country is concentrated in some segments of the population, which leaves the door open for the introduction of new attractive games for younger consumers with more spending power.

How are you progressing in the tendering of pari-mutuel sportsbooks? Are you getting the results you expected so far? Can you tell us about the profile of company presenting serious proposals on this?

The tender process to choose a national operator of pari-mutuel sportsbooks is moving ahead smoothly. This year we plan two public sessions to explain and clearify its terms and conditions.

The deadline for the tender process was April 2, by which time the following companies had presented their proposals: Gtech SB Limitada Promesa de Sociedad Futura and Corredor Empresarial S.A. We expect to announce the award on May 7th. It is important to emphasise in this context the support of entities of surveillance and control such as the State Attorney General of the Nation and ITRC, because our guiding principle is to promote the participation of all the actors that may lead to more transparent processes.

How is the Decree 3034, issued December 27 2013, working for traditional lotteries? Has the competitiveness improved, as operators claimed it would?

Lotteries and chance are two games of chance assigned by the law to the Colombian regions. This means they don’t directly fall within the remit of Coljuegos. However, we do participate as members of the National Games of Chance Council, which is the competent entity regulating and monitoring those games.

The Decree 3034 marks is a great regulatory step forward, because it guarantees amendments affording more flexibility and competitiveness. At this moment, the National Council of Games of Chance is studying the regulatory development of this Decree and has already met with the Lottery Managers to incorporate their vision to the regulatory process.

Do you plan to introduce new games in the short and medium term?

Yes, race games and virtual sports games fall within the domain fo Colijuegos. Then there are games such as Keno and Internet betting. In terms of territorial competitions, we advise the National Games of Chance Council on the regulation of an instant lottery, which is pending adjudication by the departments.

In what way will Colijuegos work with casino and bingo operators and providers of the sector? Have you already talked to them? What are their main requests?

On top of the usual engagement between Coljuegos and the trade unions of the sector, as of April 2 we started a dialogue with operators, in which we share our vision of the sector and open a space so they can express their opinions and concerns. We also have permanent channels through our website and monthly bulletin localized gambling operators.

How important is the gambling industry for the Colombian economy? What does it generate?

As I mentioned before, a great weakness is that there is no information on the contribution of games of chance as an industry. Based just on the tax collection, we can see that its contribution is small and no doubt could be larger. That’s why it is important to develop the market and look for a better position for this sector in the national economy.

What is the main goal you aim to reach during your first year in post?

The main aim is to achieve an increase in the profitability that the sector produces for the Colombian state. It is also a priority to continue with the online connection of authorized slots.