Cape Verde’s tourism sector is experiencing a steady recovery, resulting in an increase in revenue from the gambling tax, according to latest figures. The tax revenue, which applies to the sole casino operating in the archipelago located on Sal Island, saw a 21.6% growth until April 2023 compared to the previous year.
Data compiled from the Ministry of Finance’s budget execution report reveals that the tax contributed PTE19 million ($103,026) to the state coffers during the first four months of the year.
The amount is still below pre-pandemic levels. However, this increase, compared to PTE16 million ($86,782) in the first four months of 2022, reflects “the dynamism of tourism activity” in that period, the report reads.
In the government’s 2023 budget, a forecast of PTE60 million ($325,451) was included as the expected revenue from this tax. The tax generated 31.4% of that projected amount within four months.
After enduring a ten-month forced closure due to the pandemic, the Casino Royal in Santa Maria, Sal Island, reopened its doors, allowing card and roulette games to resume. More than eighty workers have returned to their positions in recent months, serving over 150 daily players.
Jacques Monnier, the French businessman behind Casino Royal, has expressed his intentions to replicate this success by establishing a second casino in São Vicente.
The government plans to grant a 25-year concession for the operation of games of chance in the Gaming Zone on São Vicente Island, which would become the country’s third casino location, besides Santiago, where plans for a casino in Praia have been pending construction for several years. Competitors for the São Vicente Gaming Zone concession were given until the end of April to submit proposals, including Jacques Monnier, which has also advanced.
According to the announcement of the opening of the tender, published in February in the Official Bulletin by the Ministry of Tourism and Transport, the highest value of the variable part of the premium payable to the State will have a weight of 15% in the final evaluation of the proposals, the highest volume of investment 20%, the counterparts 10%, the experience of those involved 10%, the shortest time expected to start operating 10%, the enhancement and diversification of the tourism offer 20%, and the highest volume of jobs created 15%.
With a regulatory decree in effect since February, allowing the opening of this tender will lead to the construction of the country’s second casino. The decree emphasizes the importance of gambling as a differentiating element in Cape Verde’s tourism product and highlights the role of the Inspectorate General of Gaming in regulating and supervising the sector.
“It is, therefore, time to resume the expanded concessions project, meeting the efforts of tour operators who continue to see gambling as the element that can make a difference in the demand for the tourism product Cabo Verde and the growth, equipping and competence of the Inspectorate General of Gaming, as the public body responsible for regulation and supervision of the activity,” said the decree as reported by Lusa News Agency.
Ultimately, the concession for operating games of chance in the São Vicente gambling zone will be awarded “based on the most economically advantageous proposal,” considering factors such as the prize value, financial capacity of the competitor, proposed public interest investments, impact on tourism, social and cultural initiatives, and employment generation in gambling and related activities.
Original article: https://www.yogonet.com/international/news/2023/07/05/67793-cape-verde-gambling-tax-revenue-sees-216-increase-as-tourism-sector-recovers
