Uruguay is in the process of legalizing online casinos and the land-based segment isn’t happy. It has convinced its workers to launch a strike today in protest of gambling expansion, although the exercise isn’t likely to alter the country’s course.
In a statement, the National Federation of Gambling Workers (Fenaju, for its Spanish acronym) expressed its “concern about the impact the current online gambling project will have on the health of the population” that is being discussed in Parliament. The union, which represents around 3,500 workers, resolved to carry out a 24-hour strike to highlight their opposition.
The strike isn’t going to make a huge dent in gambling activity, but lottery players won’t be happy. The Montevideo Portal explains that it will force the cancellation of several draws.
Do It Our Way
Yesterday, union representatives appeared before the Budget Committee of the Chamber of Deputies. They voiced their concerns about online gambling, bringing up the same tactics other regions have used in trying to stop expansion.
Fenaju boss Leonel Revelese spoke with Montevideo Portal and stated that the union is not necessarily opposed to online gambling. However, it doesn’t support the way Uruguay is addressing the potential market.
The union believes that gaming revenue will decrease with the arrival of online gaming. It also asserted that online casinos are more attractive for money laundering.
There’s no evidence from markets where land-based and online gaming co-exist to believe that revenue will decrease. On the contrary, there is more evidence supporting a strong symbiotic relationship between the two that allows both to thrive.
Multiple studies have shown that, in general, the online casino customer was never a land-based customer. Therefore, the online segment doesn’t cannibalize the retail market.
In addition, online casinos don’t invite money laundering. The current state of Australia’s casino industry with Crown Resorts and Star Entertainment, as well as issues in Canada and Las Vegas, supports this.
In turn, he referred to the possibility of increasing cases of problem gambling with the legalization of online gambling. He said his position was based on the experience of some European countries; however, there are no studies that support the findings.
For example, the UK has both land-based and online gambling, and the level of problem gambling has decreased. The same can be said for Spain, where online gaming has been one of the most successful eCommerce activities.
Uruguay Not Backing Down
In the meeting yesterday, specialists from the executive branch were present to defend the measure. As it prepares to move forward, Uruguay has blocked 1,525 online betting sites that operate from abroad.
The head of the Directorate General of Casinos, Gustavo Anselmi, brought official figures on gambling in the country to shed light on the problem. He pointed to evidence that shows online gambling platforms in other countries, like Argentina, perform well, but are not overtaking the industry.
Anselmi recognizes the value of expanding into the online market and doesn’t anticipate a move backward. However, he also has his take on the virtues of gambling.
“Gambling is a disease and must be treated by public health,” Anselmi told the Commission. He cited a report from Uruguay’s Hospital de Clínicas, which indicates that in 2021 about 100 people were treated for gambling.
A year earlier, there were 78 cases. However, even at 100, that’s less than 0.00003% of Uruguay’s population of 3.46 million. Still, because it’s at the forefront of all gambling discussions now, Uruguay would need to address potential problem gambling even if didn’t legalize online casinos.
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