Over this period a 123% increase has been registered. According to DGI figures, a total of 10.1 million Cordoba (US$590,000) has been collected, more than double that collected in 2004.

Not all gaming operators, however, are paying tax. Of around 50 operators in the country, 11 major operators have filed legal challenges in the courts against the Tax Equity Law, which has generated arrears of some 16 million Cordoba (US$931,315). Melvin Estrada, sub director of the DGI, has said that these operators should present themselves at the Tax Office in order to regularize their situation because, when the Casino Law presently being discussed in the National Assembly is enacted, things will be worse for them.

Manuel Gutierrez, judicial director of the DGI, commented that the companies not paying their taxes are not contesting the law but the regulation that establishes the tax rate. The Supreme Court, which should have resolved the legal challenge within 45 days, is still considering the matter one year later.

Tax on slot machines and table games ranges from around US$18 to US$25 each. In Nicaragua there are about 73 table games and 6,500 slot machines, with some 3,500 paying tax at present.

The 50 operators of the 612 gaming venues have given Nicaragua a top spot for gaming investment in the region, second only to Panama. This year the authorities are planning to collect as much as 19.6 million Cordoba (US$1.14 million) in taxes from casinos and slots venues. So far they have achieved 68% of their projection, not including those in arrears.

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