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Judicial Power of Honduras

SUPREME COURT OF JUSTICE

Republic of Honduras, C.A.

GAMING LAW, BETTING OR GAMBLING

DECREE NUMBER 488

THE HEAD OF STATE, IN COUNCIL OF MINISTERS,

CONSIDERING: That the Law of the Honduran Institute of Tourism declares of

national interest in the promotion, protection, development, and exploitation of tourism.

CONSIDERING: That in order to enhance the development of tourism, the

Article 51 of the Law of the Honduran Institute of Tourism empowers the Executive Branch.
to authorize the operation of betting or gambling casinos, in accordance with the
Law that is issued for this purpose.

CONSIDERING: That to promote the development of tourism, attract foreign exchange to

country and provide the State with an additional source of income, it is advisable
establish the rules and regulations to which individuals must adhere
or legal entities that wish to operate gambling or betting casinos;

THEREFORE:

In exercise of the powers granted by Decree Law No. 1 of December 6

1972

DECRETA:

The following,

Article 1.- This Law establishes the norms and regulations that must be
subjecting natural or legal persons who operate Gambling Casinos
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the luck.

Article 2.- For the purposes of this Law, gambling games are understood as
chance; the games of roulette, dice, cards, punto y banca, baccarat, machines
slot machines and other similar ones1.

Article 3.- Only Hondurans by birth and legal entities

constituted in accordance with the laws of the country, may request the Executive Power
through the Secretariat of Culture, Tourism and Information, licenses to operate
betting or gambling casinos, as long as they meet the following requirements:

a) Operate in a first-class tourism establishment, whose investment

fixed to be above one million Lempiras;

b) Not having been convicted of a crime whose penalty involves

deprivation of liberty.

This provision applies to partners, shareholders, and managers in the

cases involving a legal entity.

c) To have wide financial solvency; and,

d) Be solvent with the Public Treasury.

Article 4.- Licenses will be granted for a maximum period of twenty-five (25)
years, renewable for periods of 5 years, which will start to be counted from the
date on which the respective operations begin. In the Agreement that is issued
Granting the license, the period within which it must operate will be established.
Casino.

Article 5.- Any natural or legal person who has obtained a license to
operate gambling or betting casinos, will draft a project of Regulation
Internal, which must be submitted for the knowledge and approval of the Secretariat of
Culture, Tourism and Information, at least thirty days in advance of the start
of its operations.

Article 6.-The purpose of Gambling or Betting Casinos is to promote

of foreign tourism, therefore it is strictly prohibited to admit as
players to said centers, who do not prove by presenting their
1
See Executive Decree No. 70-92 dated 30 of
December 1992, published in the Official Gazette La
Gazette number 27023 of April 20, 1993, whose text
the entire document appears at the end, as an annex.
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passport, the quality of foreigners.

Without prejudice to other penalties established in this Law, the breach of this
The norm will result in a fine of L.50,000.00 (FIFTY THOUSAND LEMPIRAS)
if the violation is for the first time, in case of reoffending, action will be taken
to the immediate and definitive cancellation of the business Operating License. 2

Article 7.- The holder of a license to operate a gambling casino or

chance, may exploit it through another natural or legal foreign person, prior to
authorization from the Secretariat of Culture, Tourism and Information, which will grant it
when, in their opinion, such an operation results in the improvement of the service
from casinos for the benefit of tourism.

Article 8.- The beneficiaries of a license to operate gambling casinos

they must pay the Treasury an annual amount as tax
L.700,000.00 (SEVEN HUNDRED THOUSAND LEMPIRAS) payable monthly or 20%
from the gross income received minus the prizes paid, must be taxed the
amount that results higher for the State except in the insular areas of the country
that will pay annually the amount of L.300,000.00 (THREE HUNDRED THOUSAND
LEMPIRAS) payable monthly or 20% of the gross income received
less the awards paid, applying the amount that results greater for the Treasury.
Payments will be made at the General Treasury of the Republic or at the
revenue-collecting dependency indicated by the Ministry of Finance and Public Credit. 3

Article 9.- In order to guarantee the interests of the State, the Secretariat of
Ministry of Finance and Public Credit through the General Directorate of Taxation,
will periodically conduct the investigations it deems appropriate.

Article 10. The Department of Culture, Tourism and Information will designate the
game inspectors responsible for ensuring strict compliance with the
provisions contained in this Law and its regulations.

Article 11. For such purposes, the holder of a license to operate casinos of
2
Copied under the terms of Decree Number
76-90 dated July 24, 1990, published in the
Official Diary La Gaceta number 26217 of August 20
from 1990, whose full text appears at the end, as
annex.
3
Copied in the terms of Decree Number
101-88 dated September 12, 1988, published in
the Official Newspaper La Gaceta number 25660 of the 20
October 1988, whose full text appears at the end,
as an attachment.
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games of betting or chance, is obliged to allow officials designated by the
Secretariat of Culture, Tourism and Information and the General Directorate of Taxation, the
free access to game rooms, equipment, books, and other documents that they
to request, in relation to the ordinary course of the Company.

Article 12. The supervision and control of players in Gaming Casinos

Invite or Chance, will be in charge of the State Secretariat in the Offices of
Governance and Justice4.

Article 13. The holder of a license to operate a gaming casino or

During the first twelve months of business operation, they may use,
lack of Honduran personnel, the specialized foreign staff required,
while training national personnel, with the obligation that once expired the
During the indicated period, the provisions of labor legislation on the subject will be followed.

Article 14. The holder of a license to operate gaming or gambling casinos,

will have the right to exemption, for one time only, from all taxes of
importation and other charges, including consular fees, except for
the services provided by the State for the importation of movable goods,
devices and parts and spare parts intended for casinos, provided that they are not produced
in the country. The exemptions indicated in this article will be granted by
the Secretary of Finance and Public Credit, prior Agreement issued by the Power
Executive, through the Secretary of Culture, Tourism, and Information, having heard the
opinion of the Secretariat of Finance and Public Credit itself.

Article 15. Holders of licenses to operate gambling casinos or

They may transfer their rights to another person or persons, subject to prior authorization from
Executive Power, through the Secretariat of Culture, Tourism and Information.

Article 16. Violations of this Law and its Regulations shall be sanctioned.
with a fine of ONE THOUSAND LEMPIRAS (Lps. 1,000.00) to TWENTY-FIVE THOUSAND LEMPIRAS
(S/.25,000.00), which will be imposed by the Ministry of Culture, Tourism and Information,
according to administrative procedure, and must be reported to the General Treasury
of the Republic or in the Revenue or Customs Administrations, within the term
of three (3) days counted from the request; once this period has expired, it will proceed
to be collected by means of enforcement.

Recidivism will be punished with double the originally imposed fine.

4
Copied in the terms of Decree Number
76-90 dated July 24, 1990, published in the
Official Diary La Gaceta number 26217 of August 20
from 1990, whose full text appears at the end, as
annex.
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Article 17. The Executive Power through the Secretariat of Culture, Tourism and
Information will revoke the license granted under this Law and its
Regulations, in the following cases:

a) When a final judgment has been made against the holder of a license
conviction resulting in imprisonment;

b) When declared bankrupt;

c) When the obligation to pay the rights, taxes, and

other burdens that correspond to the State;

d) For repeated non-compliance with the laws applicable to this activity; and,

e) For transferring the rights granted by the licenses to another person, without
permit from the competent authority.

Article 18. Natural or legal persons who have been authorized to

operate gaming or gambling casinos before the enactment of this Law,
They will have a period of six months to adjust to it and its regulations.
that regarding conditions that their authorization did not require.

Article 19. The Executive Power shall regulate this Law through the
Secretariat of Culture, Tourism and Information.

Article 20. This Law repeals all provisions that oppose it and will enter into force.
in effect from the day of its publication in the Official Journal 'La Gaceta'. 5

Given in the city of Tegucigalpa, Central District, on the eighth day of the month of July
from nineteen seventy-seven.

5
Published in the Official Diary La Gaceta number 22247
dated July 16, 1977.
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DECREE NUMBER 100-88

THE NATIONAL CONGRESS,

CONSIDERING: That it is the duty of the State to protect and promote the heritage.
familiar to all Hondurans issuing protectionist laws that establish
provisions framed in the realm of morality, education, and good
customs.

CONSIDERING: That it is the State's obligation to protect minors

because our Constitution requires it and because it is our duty as
responsible citizens and parents.

CONSIDERING: That the authorization by the State for the operation and
operation of Gambling or Betting Casinos has been granted for
promote tourism, attract foreign currency to the country and provide the State with a source
additional income, allowing adults to play
any nationality they may be and with ample financial solvency.

THEREFORE:

DECREE:

Article 1. Amend Article No. 6 of the Gaming Casino Law of Betting

Chance, which should be read as follows:

Article 6 It is strictly prohibited to admit as players the

gambling or betting rooms for national or foreign persons under
21 years old.

Article 2. This Decree will come into force on the day of its publication in the
Official Journal 'La Gaceta'6.

Given in the city of Tegucigalpa, Municipality of the Central District, in the Hall of
Sessions of the National Congress, on the twelfth day of the month of September of one thousand
nine hundred eighty-eight.

6
Published in the Official Gazette La Gaceta number 25660 dated the 20th of
October 1988.
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DECREE NUMBER 101-88

THE NATIONAL CONGRESS,

CONSIDERING: That the National Tax System is governed by the principles of

legality, proportionality, generality, and equity according to capacity
economic situation of taxpayers, whether natural or legal persons.

CONSIDERING: That the Gambling Casino Law must be

to be structured in such a way that the State ensures control over taxes in order
that the holders of the granted licenses contribute equitably with the
Finance.

CONSIDERING: Based on those principles and in accordance with the plans of

development that the Government of the Republic has in the insular areas of the country is
it is convenient and necessary to give them special treatment regarding taxes
that derive from betting or gambling rooms, in order to make it more
attractive to national or foreign entrepreneurs who wish to invest in them
tourist places.

CONSIDERING: That there is more financial capacity on the part of the Casinos
that operate in the country, to pay higher taxes in terms of taxes for the
operations they carry out, without compromising their situation
economic.

THEREFORE:

DECREE:

Article 1. Amend Article 8 modified of Decree No. 488 dated July 8

from 1977, which contains the Gambling or Chance Casinos Law, which will be read
like this:

Article 8. The beneficiaries of a license to operate gaming casinos

invite or chance, they must pay the Treasury an annual sum in tax of
L.700,000.00 (SEVEN HUNDRED THOUSAND LEMPIRAS) payable monthly or the
20% of the gross income received minus the prizes paid, must
tax the amount that results in a greater benefit for the State, except in the areas
country residents who will pay annually the amount of L.300,000.00
(THREE HUNDRED THOUSAND LEMPIRAS) payable monthly or 20% of the
gross income received minus the paid prizes, applying the amount
that results in greater revenue for the Treasury. Payments will be made at the General Treasury.
from the Republic or in the collection agency indicated by the Secretariat of
Treasury and Public Credit
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Article 2. This Decree will come into effect on the day of its publication in the
Official Journal "La Gaceta"7.

Given in the city of Tegucigalpa, Municipality of the Central District, in the Hall of
Sessions of the National Congress, on the twelfth day of the month of September of one thousand
nine hundred eighty-eight.

7
Published in the Official Journal La Gaceta number 25660 dated 20 of
October 1988.
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DECREE NUMBER 76-90

THE NATIONAL CONGRESS,

CONSIDERING: That it is a citizen's duty to ensure that the laws of the

Republic, issued to regulate the acts that occur among the community,
function according to the intentions of their legislators and fully meet the objectives
for which they have been created; and that in case they lack
necessary effectiveness to achieve its purpose, the relevant reforms must be issued,
to adapt them to that original intent of the legislator.

CONSIDERING: That the Gaming and Betting Casinos Law, contained

in Decree Number 488, dated July 8, 1977, was issued with the good intention
to create an additional source of foreign currency by promoting tourism
international towards our country, a purpose that became distorted,
due to the fact that casino owners, instead of making promotions for these
establishments abroad, to encourage the influx of tourists into our country
country, they have dedicated themselves to the exploitation of these businesses, through admission
majority of players of Honduran nationality.

CONSIDERING: That according to the provisions set forth in numeral 1 of Article 205 of the
The Constitution of the Republic grants the National Congress the power to create, decree,
interpret, reform, and repeal the laws.

THEREFORE,

DECREE:

Article 1. Reform the Articles 6, which was modified by the Decree

No. 100-88, dated September 12, 1988, and 12 of Decree No. 488, dated 8 of
July 1977, which contains the Law on Casino Gambling or Games of Chance, which
they must be read like this:

Article 6. The purpose of Betting or Gambling Casinos is to

promotion of foreign tourism, therefore it is strictly prohibited
admit them as players to such centers, to those who do not provide proof through the
presentation of your passport, the status of foreigners.

Without prejudice to other sanctions established in this Law, the violation of this
the norm will lead to a fine of Lps.50,000.00 (FIFTY THOUSAND LEMPIRAS)
EXACTLY), if the offense was for the first time, in case of reoffending, it will be
will proceed with the immediate and definitive cancellation of the Operating License of the
business.
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Article 12. The supervision and control of players at Gaming Casinos.
The invitation for Azar will be handled by the State Secretariat in the Offices of
Governance and Justice.

Article 2. This Decree shall enter into force as of the date of its
publication in the Official Journal "La Gaceta"8.

Given in the city of Tegucigalpa, Municipality of the Central District, in the Hall of
Sessions of the National Congress, on the twenty-fourth day of the month of July of one thousand
nine hundred ninety

8
Published in the Official Journal La Gaceta number 26217
dated August 20, 1990.
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EXECUTIVE DECREE No. 70-92

THE CONSTITUTIONAL PRESIDENT OF THE REPUBLIC,

IN COUNCIL OF MINISTERS

CONSIDERING: That the President of the Republic is in charge of the supreme

direction, coordination, and general administration of the State.

CONSIDERING: That it is the attribution of the President of the Republic, among others,
to comply with and enforce the Constitution, laws, and other legal provisions, thus
how to issue Agreements, Decrees and issue Regulations and Resolutions according to
the law.

CONSIDERING: That by Decree Number 7, dated February eighth

nineteen hundred and six, the Police Law was issued.

CONSIDERING: That in accordance with Article 49 of the Police Law,

reformed by Decree Number 151, dated April ninth of one thousand
nine hundred twenty-nine, the allowed games are: billiards, roosters, lotteries, raffles,
balls, balls, dominoes, those for card games, those for dice, roulette, and all the so-called ones
luck, bet or chance.

CONSIDERING: THAT IT IS EXCLUSIVE COMPETENCE of the Executive Branch

allow the installation and operation of permitted games, especially all of them
those calls of gamble or chance.

CONSIDERING: That it has been reported that in the Municipalities of the Central District
and San Pedro Sula, department of Francisco Morazán and Cortés, respectively,
there are houses where betting or gambling games are played, such as roulette, dice and
others, which due to modern technology, are identified as slot machines,
traganíqueles or another denomination, and which by their nature and practice correspond
to games of chance, belonging to those of stake or chance; therefore, their
operation and functioning must adhere to the established legal requirements.

CONSIDERING: That the Government of the Republic must take the measures
relevant, in order to establish effective control, to prevent individuals
unscrupulous individuals of dubious repute who engage in the practice and operation of
betting or gambling games install and put into operation this type of activity, whatever it may be.
whether they were traditional or modern mechanisms for their execution, BUT WITHOUT
TO COUNT WITH THE PERMISSION OF THE EXECUTIVE POWER, IT IS ILLEGAL HIS
FUNCTIONING.

THEREFORE: In exercise of its powers and in application of Article 245,

Attribution 1 and 11, of the Constitution of the Republic; 11, 116 and 118, of the Law
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General of the Public Administration; and 49, amended by Decree 151, of the ninth of
April nineteen twenty-nine, of the Police Law.

DECREE:

FIRST: Prohibit the functioning and operation within the National Territory
gambling houses or casinos, such as roulette, dice, cards, punto banco, baccarat,
slot machines, for whose operation price and bet mediate and others whose
methods, whether traditional or modern in their execution or operation, mediate
a bet.

SECOND: To instruct the Departmental Political Governors and Mayors

Municipal and other civil and military authorities, proceed to locate, close
and final closure of houses, buildings and other facilities in which they operate and
practice games of chance or betting, assisting themselves with public force, in case of being
necessary.

THIRD: To instruct the Departmental Political Governors and Corporations

Municipalities, in order to inform and report to the State Secretary in the
Dispatches from the Government and Justice regarding the location and closure of houses or
buildings in which, without the permission of the Executive Power, operate under any
demonstration, betting or gambling games; also must report immediately to the
Secretary of State in the Departments of Government and Justice, the obstacles,
delays and other news that may arise circumstantially for them
compliance with what was ordered.

FOURTH: This Decree is effective from its date and must

publish in the Official Diary La Gaceta. Communicate.
9

9
Published in the Official Journal La Gaceta number 27023 dated 20 of
April 1993.