Some gambling activity is quite legal in Venezuela, but other activity operates on the edge of the law. Bingo parlors, horse and dog racing, and government lotteries are authorized; however, casinos are in some sort of limbo. In recent years, many casinos have operated on Margarita Island – a tourist resort area – and other locations under authorizations from local governments. The country of 15 million avoided resolving many regulatory issues, however, as there was no national law on casinos. Finally in 1996 a national law was passed. National authorities sought to preempt all local authorization of casino gaming. Under the law, casinos were permitted in five-star hotels with 200 rooms if they were located in tourist zones. Margarita Island was one such zone. The casinos were to be given ten-year renewable licenses. They were taxed at a rate of 20% of their gross gaming wins. Most of the casinos closed because they could not meet requirements for licensing, and only one received a license. That casino, the Grand Casino Margarita, is located in the Margarita Hilton Hotel. It is run by CIRSA, a Spanish gaming company. The government has approved eight other zones for casinos, but no licenses are pending.
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