Reactivation of casinos and bingo halls, insufficient measures taken by Nicolás Maduro to try to revive the economy of Venezuela

At the start of 2020 the regime of Nicolás Maduro casinos and bingo halls authorized to operate in Venezuela, in a new attempt by the dictatorship to achieve a process of economic openness and flexibility.

However, some experts consider that this measure does not significantly affect the economy of the Caribbean nationbecause it does not serve other fundamental sectors such as industries and local producers.

Venezuelan economist Manuel Sutherland explained to Efe as the country’s dictator, Nicolás Maduro, took this step, unlike that proposed by his predecessor and political father, Hugo Chávez (1999-2013), ten years ago, “Because it is in a process of opening up to, in a way, revive the economy, although in a very precarious, very improvised way.”

For his part, the economist Leonardo Buniak, assured that the regime is taking “accelerated opening” measures to try to revive the economy “and believes that is one way to do it”.

“For Maduro, it is necessary and important to open casinos because, among other things, of the possibility of revitalizing certain economic activities”, Buniak pointed out in an interview with Efe.

Against what many think, Economist Leonardo Buniak explained that Maduro’s decision does not necessarily mean he is against Chávez.

A POSITIVE IMPACT

Experts agree that casino openings are not negative, but according to Sutherland, These types of measures are initiatives of the private sector, not of the executive., which is limited to authorizing openings.

“The government is not going to invest a dollar in the casino or buy infrastructure, there is therefore no diversion of resources from one area to another, ”he stressed.

He also pointed out that it will not have a significant impact on the country’s gross domestic product (GDP), although it may help to recover the jobs lost ten years ago and in the collection of taxes at the municipal level.

“Especially in the interior of the country, the activity of the casino (…) could generate taxes especially for these municipalities, (to) paint a sidewalk, remodel something or plant a tree, ”he said.

For his part, Buniak said that With this initiative, some 12,000 direct jobs will be created, benefiting the same number of families.

“It will not have an impact on employment in Venezuela, but it will generate jobs and that is positive”he added.

The economist pointed out that at the international level, casinos are a high wealth generating business for which they pay high taxes which are then rendered to society in the form of public services.

There is also social responsibility, where these casinos have the obligation to maintain schools, hospitals and infrastructure.

“The question is whether these Venezuelan casinos are going to have a social responsibility to give back to society, to the cities where they will operate, part of the wealth they will generate, ”he added.

CASINOS ARE NOT ENOUGH

In January of last year, When Maduro announced the opening of an international casino in the refurbished Humboldt Hotel, located atop El Ávila Hill, in Caracas, He said the collected resources would be invested in various areas of the state, such as health and education.

However, Sutherland said these types of businesses are difficult to control because, you can “go in and buy five million tokens in cash and it doesn’t go through accounting, or make transfers via Zelle or anything that escapes the tribute in any way; It is therefore very difficult for that to really generate a significant tax ”.

For Buniak, the opening of casinos will not affect national and international tourism either, because only a small proportion of people travel to casinos.

“The tourist looks for basic services, infrastructures. In terms of tourist infrastructure, the country suffers from major weaknesses, among other things, because there is no water, electricity or gasoline ”, stress.

BIG CHANGES

In Sutherland’s opinion, industry is the sector that can really boost the country’s economy, but “currently no investment is made in this area because legal and political insecurity persists”.

Ratified that in Venezuela “very important and radical” economic measures are needed so that it grows back.

“It’s necessary seek a macroeconomic stabilization plan, an adjustment plan, an international loan, a lot needs to be changed in Venezuela and obviously the casino is a drop in a sea of ​​needed changes and changes that haven’t happened yet, ”he said.

Chávez ordered the closure of these gambling houses considering them, among other things, as “places of perdition”, But now Maduro has licensed 30 casinos to operate in the country, seeing them as an economic lifeline, a vision that falls far short of that of his mentor.

(With information from EFE)

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