Bolivia declared independence from Spain in 1825. Gambling in Bolivia was legal from 1871 to 1938 when the government introduced a ban on all games of chance. But the ban did not prevent casino fans from playing their favorite games. At that time, bingo was the most sought-after game. In 1996, the government decided to license and regulate bingo halls.
In 2002, land-based casinos were legalized. The government authorized the Russian-backed company Lotex to open the first legal casino in the country. The same year, Lotex opened Bingo Bahití in Santa Cruz. The gambling establishment operated as a bingo hall but also hosted many slot machines.
After Russia prohibited all forms of gambling outside the four designated zones, many Russians decided to move their gambling businesses to Bolivia. The country was the perfect spot for operators due to its loose regulations and affordable gambling taxes. A loophole in the law allowed licensed companies to open an unlimited number of gambling establishments because a single license covered a single company. In other words, the law does not explicitly state that a licensed company can open one gambling establishment only.
But many Russians who established their gambling businesses in Bolivia were found to have ties to organized crime. That is why the Bolivian government decided to tighten gambling regulations. New legislation was passed in 2010, restricting the locations where gambling establishments can be built and what activities they could offer. Extending credit to players and using credit cards for gambling was also prohibited. The same year, Autoridad de Fiscalización y Control Social del Juego (AJ) was established to regulate the gambling industry in Bolivia. At the moment, AJ is responsible for regulating and overseeing the gambling industry in Bolivia.
In 2011, another piece of legislation came into effect, levying a gambling tax of 30% on operators and 15% on players’ winnings. Burdensome taxes and tight regulations usually trigger an exodus of operators, but that was the aim of the legislation. Russian businessmen were forced to close their gambling locations and leave the market. Authorities confiscated gaming machines from illegally operating gambling locations.
In 2014, the House of Senators approved amendments to the Lotteries and Gambling Law, allowing the Office of Gaming and Social Control (AJ) to sell all confiscated machines to authorized operators at an auction. In 2018, the Authority of Taxation and Social Control over Gaming (AJ) in Bolivia presented a new app called ‘AJ Móvil’ in a bid to combat illegal gaming. The app allows casino enthusiasts to check the legality of a given gaming platform or venue.
Although casino gambling is legal in Bolivia, many gambling locations and casinos could not survive due to the Covid-19 pandemic. At the moment, only one land-based casino operates in Bolivia.