Colombia's Gaming Sector is Experiencing Increased Profitability
Gambling in Latin America is growing, with Colombia experiencing a notable increase in revenue. Despite some financial experts predicting a recession in the country, Colombia's gambling sector gained more than 15% to its 2022 revenue.
During the first eight months of the year, the country saw a significant boost in gaming revenue. This week, gaming authority Coljuegos reported that the total revenue reached COP564 billion (US$133.72 million), marking a 16.8% increase compared to the previous year.
This not only brought benefits to gambling operators, but also significantly impacted government-run programs.
Legal Gambling Sows Benefits
Marco Emilio Hincapié, president of Coljuegos, mentioned that part of the revenue growth can be attributed to the regulator's efforts to curb illegal gaming. He speculated that this was drawing more gamblers to sanctioned platforms.
Recently, the regulator's Illegal Operations Control Management division, in collaboration with law enforcement, seized 21 illegal slot machines from a popular establishment in Bogotá, capital of Colombia. The authorities disclosed that these machines had cost the government as much as COL760 million (US$189,615) over the past five years.
In another raid over the weekend, officials from Colombia's Tax and Customs Police division confiscated an undetermined number of illegal slot machines and other gaming equipment in Maicao, in addition to arresting one individual.
By eliminating illegal gaming ventures and watching the gambling sector flourish, the government has been able to contribute more funds to healthcare programs. Coljuegos has managed to provide them with 22.15% more money than the year before.
The Gambling Boom Bucks the Economy
The gambling sector has shown improvement even as the national economy is slowing down. BBVA Research analysts predict a 1.2% growth rate for this year, with a slight improvement to 1.5% by 2024. Despite the positive outlook, concerns linger about the speed of the economic upturn.
By year's end, there might be a decrease in inflation rates, with the Consumer Price Index projected to reach 9.7% in December. In response, Colombia's central bank is expected to reduce interest rates gradually. By the close of 2023, the bank's interest rates could settle at 12.5%, eventually dropping to 7% in 2024.
Meanwhile, the construction industry, particularly the area of public infrastructure, continues to struggle. The BBVA Report recommends focusing on investments in agriculture, health, and education aiding the country's growth. The gambling industry could help in this regard.
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