Chile’s gaming industry has marked a significant upturn in fortunes, as the country’s 25 casino venues reported a dramatic increase in gross gaming revenue (GGR), soaring by 9.1% to reach CLP$513.68 billion in the year 2023. The buoyant performance has been underpinned by a surge in visitations, with a 12% hike in the number of guests frequenting these entertainment hubs totaling 7.1 million footfalls. Despite the enthusiastic customer turnout, 2023 did present a blip in patron spending, with the average outlay per visit dropping by 12% to CLP$76,042, in contrast to expenditures recorded in the preceding year.
Despite the robust revenue influx, the casino industry witnessed a dip in success rates towards the year’s end, experiencing a consistent decline in casino win metrics. December 2023, in particular, reported casino takings that fell short by 4.7%, judged against the corresponding month in 2022. The overall uptick in GGR, however, prevailed over the fluctuating monthly performances, with the year ending on a positive financial summary.
Not only did the industry bask in revenue prosperity, but it also made significant contributions to the national coffers. The tax collected from the gaming operations witnessed an 8.7% boost, amassing CLP$195.72 billion, a notable increase from the prior year’s CLP$180 million benchmark.
Legislative wheels have also been set in motion with the Chilean chamber of deputies passing a pivotal bill to regulate online gaming in December. The legislative proposal, now in the Senate’s court for a second review, is poised to establish a competitive digital gaming market aligned with the imperative of safeguarding the health and safety of gambling participants. Should the lawmaking course run smoothly, encompassing the senate verdict and a subsequent nod from the chamber of deputies, Chile could see the novel regulatory system operational by November 2023.
In setting up a regulated online gaming ecosystem, Chile anticipates encountering challenges similar to the ones faced by Brazil in its quest to bring its gambling market under a regulated framework, an endeavor expected to reach fruition in 2024. Among the hurdles foreseen are stringent tax policies and the essential task of rendering the licensed industry appealing enough to lure gamblers away from the illegal gaming circuits.
A particularly prominent concern is the alleged risk of online gambling cannibalizing the revenues of physical casinos. This belief has fostered apprehension that the legalization of internet-based gaming could have detrimental effects on the revenue stream of brick-and-mortar establishments. However, a new study conducted by iDevelopment and Economic Association (iDEA) and authored by Eilers & Krejcik Gaming (EKG) dismisses this fear as largely unwarranted. Analyzing data from a 16-year period from casino operators, regulators, and state governments, the report reveals that the advent of online casinos has not stymied, but rather positively influenced the revenue of land-based casinos.
In dissecting trends across six states, the study measured the compound quarterly growth rates (CQGR) of physical casino GGR before and after the introduction of online casinos and discovered favorable growth alterations. Additionally, EKG’s survey spanning both land-based and online casino operators concluded with a resounding dismissal of cannibalization concerns, with 80% of respondents recording stable revenue streams, and 20% observing moderate increases since the introduction of online casinos.
As the discussion unfolds, all eyes are trained on the outcome of the legislative process in Chile. With empirical evidence suggesting symbiotic growth between land-based and online casinos, stakeholders remain optimistic that the nascent online gaming bill will not only modernize the gambling landscape but potentially enhance the flourishing physical casino sector in Chile.
