Chile’s Casino Regulator Faces Leadership Vacancies Amid Key Industry Decisions

The Superintendency of Casinos (SCJ) in Chile is entering an uncertain phase as it has been without a permanent director for six months. The regulator governs the country’s casino industry, and is a key player in the process of licensing, supervising, and making decisions about the industry.

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The lack of leadership has been exacerbated by further leadership deficiencies in the organisation. The head of the Authorization Division is set to retire in May, and the head of the Legal Department is set to retire in September. The lack of experienced leaders is stirring doubts among the industry and the regulator about its ability to function when the time is ripe to take significant decisions.

Vacancies Come During Major Casino Tender Processes

The absence of permanent leadership coincides with the SCJ’s involvement in a number of key tenders, such as those of the casinos of Viña del Mar, Coquimbo, Iquique and Pucón. A number of these have resulted in conflicts and clarifications before Chile’s Competition Tribunal.

Sources in the industry have reportedly expressed worries over the uncertainty of leadership impacting the continuity of existing procedures and the processing of decisions on the backlog. Relevant in the broader context of the Chilean gaming industry as it continues to adapt to a changing regulatory landscape and ongoing debate about the future of the gaming sector.

SCJ and UAF Strengthen AML and Counter-Terrorism Rules

Even in the absence of institutional vacancies, the SCJ has been progressing on its agenda for regulation. The regulator signed Joint Circular No. 63 with Chile’s Financial Analysis Unit (UAF) that revised the circular applicable to the 25 casinos licensed in the country for money laundering prevention and financing of terrorism and the proliferation of WMD.

The new framework aims to reinforce the current requirements and to be consistent with the standards set by UAF Circular No. 62. It also has feedback from the industry, and it makes clear some regulatory concepts that make the requirements simpler to apply to casinos.

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New Risk-Based Requirements for Casinos

The significant changes include the adoption of a risk-based approach in accordance with international standards. The circular builds on the existing measures that are in place to recognize, investigate, and report suspicious transactions and adds new tailored due diligence protocols depending on the customers’ risk profile.

Another area of expansion of internal governance responsibilities under the framework is the establishment of a Prevention Committee and compliance officers’ new responsibilities in this regard. Other changes include customer and transaction records, politically exposed persons (PEPs), prevention manuals, and employee training.

Regulatory Capacity Remains Under Scrutiny

Leadership positions and a growing compliance agenda leave the SCJ in a very institutionalized situation. The permanent leadership in a number of key areas is something that could be increasingly relevant as significant licensing and regulatory decisions are taken, while the regulator continues to roll out new regulations for casinos.

The next few weeks, then, will be crucial in shaping the future of the SCJ. An appointment to vacant roles may create more continuity in the role of the regulator, as they oversee the current casino tender process, as well as advance Chile’s wider discussion on the regulation of gambling.

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Source: SBC Noticias