eputy Wálmaro Gutiérrez, President of the Commission of Production, Economy and Budget, indicated that, nowadays, the country collects us$ 1.7 million annually in taxes from the gaming industry. However, this amount would increase to us$ 4.6 million a year, which will be transfered to the General Treasury of the Republic. This would represent an increase of 170% in turnover.
The President of the Superior Council of the Private Company (Cosep), José Adán Aguerri, valued that the new regulatory frame to casino activity will force casino business to be legal, which will also allow a bigger tax collection, without increasing them. Aguerri supported the new law because it defines the “principles that must rule in the industry”, establishing the Nicaraguan Institute of Tourism as regulatory entity.
The official remarked that they achieved the law to consider the principle of equivalence, because “according to the size of each company” that operates in this kind of business, “will pay its taxes”, and added: “Here, the bigger companies will have to pay more and the small ones will pay less”, he explained.
Cosep President also remarked that one of the most important points of this new law is that it will set controls “with the aim to prevent money laundering and any type of fraudulent operation”. The Special Law for Control and Regulation of Casinos and Gambling Venues will come into force 150 days after being published in La Gaceta, official newspaper.
According to studies —affirms Gutiérrez— it is estimated that 70% of the slot machines in the country are not regulated. That’s why turnover is expected to increase with the new law. Gutiérrez pointed that market studies reflect that casino and table games business have very low costs, so their utilities are high.
The new law bans slots or table games in places that are not established for that purpose, such as casinos or gambling venues.