Financial Troubles for A Chilean Gambling Outfit

One of the most attractively located Chilean casinos, Casino Termas de Chillan, is suffering from a major revenue drop. In 2010, the casino made $1.5 million, only to see 2011 figures drop below $1 million.

In Chile, the casinos mushroomed in the past 20 years after gambling ban, established by a fascist regime under Pinochet, was lifted. Despite what many think, running casinos is a difficult business. What makes it even harder is when one of the poker champs visits Chilean poker rooms and breaks the jackpot. This makes the casinos suffer and sets the managers on fire.

Moreover, under Chilean gambling laws, the land-based casinos need to donate 10% of their gross revenues (before all expenses) to the municipality in which they operate. This has led to a recent bankruptcy of one local casino as greedy officials demanded their cut without a regard as to whether a casino made a profit or not. As of now, no one is seeking to take it over.

Some other casinos are looking to relocate to more urban areas, or areas which offer easier access to casino premises. Chile happens to be a narrow yet very long country, which is also sparsely populated. A casino establishment in a remote area kills it all.

Meanwhile, online casinos in Chile continue to claim their share of the market at the expense of land-based counterparts. This is contrary to the other countries such as those located in the Asia Pacific region where both traditional and online casinos grow quickly, and there is enough of space for everyone to profit.