The Governance Commission of the Congress of the Republic, chaired by Deputy Fidencio Lima, has issued a favourable ruling on initiative 6645, which amends the Penal Code (decree 17-73). This initiative aims to prevent, regulate, and sanction the operation of unauthorized slot machines and gambling activities.
According to a government press release after evaluating the current constitutional and legal framework, the Commission determined that the proposal does not contravene the Political Constitution of the Republic, “but instead strengthens the legal order by addressing a social, economic, and fiscal problem that has been operating without control for years. Therefore, it was resolved to continue with the corresponding legislative process.”
The government argues that new much stricter laws are necessary as thousands of slot machines operate clandestinely in shops and businesses without regulation or supervision. This in turn has led to a rise in gambling addiction particularly among the young. At the same time illegal gambling has led to increased criminal activities, and significant losses in tax revenue.
The proposed law imposes harsh penalties on those found to be breaking the law and creates the crime of tax fraud regarding gambling, establishing that the sale, importation, or possession of slot machines disguised as “toys” will be a crime punishable by five to ten years in prison and a fine of double the amount defrauded. The equipment will be confiscated and destroyed.
The regulation of gambling and slot machines states that all establishments operating these machines will be immediately closed, and owners will face penalties of two to five years in prison and fines of double the value of the equipment. If recidivism is proven, the penalty will increase up to seven years in prison and fines of triple the value.
Additionally, legislation will be introduced to protect children and adolescents by establishing that businesses allowing minors to access gambling equipment will be immediately closed, and their owners will face additional sanctions of up to five years in prison and fines of triple the value of the involved equipment.
Those responsible for establishments that simulate lotteries but include virtual gambling games, such as virtual slot machines and similar devices, will face five to ten years in prison.
Furthermore, any official facilitating the operation of these machines will be punished with three to five years in prison, along with a five year ban from public office. The initiative has received a favourable ruling to continue its approval process in the Plenary of the Congress of the Republic.
The post Guatemala to impose strict new rules to regulate gambling appeared first on G3 Newswire.
The Governance Commission of the Congress of the Republic, chaired by Deputy Fidencio Lima, has issued a favourable ruling on initiative 6645, which amends the Penal Code (decree 17-73). This initiative aims to prevent, regulate, and sanction the operation of unauthorized slot machines and gambling activities. According to a government press release after evaluating the…
The post Guatemala to impose strict new rules to regulate gambling appeared first on G3 Newswire.