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Latino America
Our team in Lima visited Peru Gaming Show 2009 and was witness to a practically insurmountable effort made by the event organizers, Grupo C&GS, to continue in its obstinate mission of support for the gaming industry in the Latin American country, which pioneered modern gaming legislation in the region.
We were not aware then of the series of damaging contretemps that preceded the event, referred to as ‘sabotage’ by Elizabeth Leiva, Grupo C&GS CEO, in a press release published in mid September by the leading regional industry B2B media. Indeed Leiva made serious accusations about several obscure characters in her lengthy and detailed press release.
What we witnessed in Lima was that the Peruvian event was affected not only by breach of contract by the venue, and had to move to another location as an emergency, but also by the inexplicable absence of the local industry associations and some of the local companies, too. While it is understandable that businesses could decide against exhibiting, based on marketing strategy and economy, one must question the logic for local trade organizations to turn their back on the single industry event in the country.
For PGS 2009, one can quote Shakespeare’s Henry V: “…We few, we lucky few, band of brothers…”, before the glorious Battle of Agincourt when facing troops in an unequal fight of five to one, it is useful to remember how many times we have seen our expectations ruined by implacable odds or a twist of fate. But also, when victory comes in the manner of the young English king, we are ennobled by the struggle that proves sweeter than a poet’s delivery. The real value of PGS 2009 was to turn powerful and inexplicable designs into a rich memento for those who took part in the Peruvian event and were rewarded with commercial success.
Returning to PGS 2009, year after year, were giants like Novomatic, MEI, Crown Gaming, Casino Technology, and Gold Club, and exhibiting for the first time in this buoyant market were Interblock USA, Crown Casino Seating and GG International, amongst others.
Notwithstanding Leiva’s press release and the events that preceded PGS 2009, we must address the fact that both government officials and company executives are accountable to the State or stockholders and associates for their actions, and that windows of marketing opportunity such as a single yearly event must be used to promote products and services, especially in difficult times.
Cheers,
Ricki.
Mexico - income from casinos would exceed US $230m
According to information from the General Directorate of Gaming in Mexico, income from permits and gaming tax on operations licensed by the State Department (Secretaria de Gobernacion) for 2009 would exceed US $130 millions. Mexico’s regulators have forecast also that Special Tax on Production and Services (IEPS) to the gaming industry would yield US $100.4 million, totaling US $230 Million for the period.
In the last three years, federal tax on the Mexican gaming industry has multiplied from 2006, when revenue collected was US $20 million. By 2007, there were 165 off track betting salons plus 142 gaming rooms with Class II slot machines. Since then, a total of 385 licensed gaming properties will have opened in the country.
However, projections for the 2010 Budget by the Mexican Exchequer of US $195.7 million indicate an imminent increase in IEPS contributions by the gaming operators, which is a worry in times of economic uncertainty in the country.
Seminole tribe signs gaming compact with Florida governor
In early September, the negotiated gaming compact between the Seminole tribe and Governor Crist of Florida was finally met and signed behind closed doors. As it stands the Seminoles will pay Florida US$150 million each year in return for keeping its banked card games at all seven casinos, totaling US $6.800 million in a 20 year period.
There were concessions on both sides: the tribe agreed to allow casinos in Miami-Dade and Broward to operate blackjack; the Governor agreed to give the tribe exclusivity of slot machines outside the two counties. Legislators wanted to limit the banked card games to just three Seminole casinos and keep an option to allow slot machines at some horse and dog tracks. If the compact is ratified then the existing racinos and jai alai frontons would get unlimited poker games and lower slot machine taxes.
Paraguay to tender 11 casino licenses
In a climate of contradictory positions, where the office of the Paraguay Attorney General should decide whether concessions for casino exploitation can be extended without a tender process, and the National Ombudsman’s Office approves gaming licence extensions to some operators, the National Gaming Commission (CONAJZAR) announced in September that it would start a tender process for 11 casinos licenses in the country.
According to the Law, one casino licence can only be granted to cities with more than 250,000 inhabitants, and the cities included in this category are: Alto Paraná, Itapúa, Amambay, Cordillera, Misiones y Central. Additionally, Asuncion, the capital of the country, with a larger population will only be able to operate one casino also.
Ecuador’s gaming sector suffers
To some gaming operators in Ecuador it seems that the Inland Revenue service (SRI) is now running the sector. On 27 May this year the SRI decided to increase levies on casinos and gaming in a manner set to add nearly 300% to tax bills. Monthly tax for each table game has been put up to the equivalent of US$1,789 from US$597. Slot machine tax has gone up from US$66 to US$201.
President of the Tourism Board in Guayas, José Carrión Ycaza, has criticised the move as making many operations unviable. “Payment is for table and for machine. It seems that the SRI is running the business.” He added that the government is supposed to be strengthening tourism in the country and that gaming operations are part of the entertainment offering. Operators also pay value added tax, licence fees alongside operational costs.
The situation in the gaming industry, which suffered a 35% fall in revenue as a consequence of global economic conditions, has not been alleviated by the government taxation policy. According to Carrión Ycaza, the extra payment burden on operators is making some leave the industry all together, with the resulting loss of employment.
EXPO CALENDAR
As gaming events begin a rapid increase in the region, companies and business personalities will be able to discern the ample offer available in the region, as detailed below.
MARCH
Caribbean Gaming Show & Conference 2010 in Dominican Republic
The Dominican Republic Gaming Commission sponsors the Second Conference and Caribbean Gaming Expo in Santo Domingo on 10-11 March.
Aruba Gaming Expo 2010
The first edition of Aruba Gaming Expo will take place on March 10-11 at the West Palm Room in the Aruba Westin Hotel & Resort.
FADJA 2010 in Colombia
The Andean Gaming Expo will take place in Bogota, Colombia over 21-22 March.
MAY
ELA 2010
The Latin American Expo ELA 2010 will take place at the Banamex Center in Mexico City on 6-7 May.
SAGSE Gaming & Amusement Panamá 2010
At the Atlapa Exhibition Center in Panama City, SAGSE Gaming & Amusement Panamá 2010 will take place on 19-20 May.
JUNE
CIJUEGO International Gaming Conference
The conference event CIJUEGO will take place at the Atlantic City Convention Centre in Lima, Peru during 2-3 June.
GAMMEX 2010 in México City
The Gaming & Amusement Expo Mexico – GAMMEX 2010 will take place at the World Trade Center in Mexico City during 24-25 June.
AUGUST
Peru Gaming Show 2010 in Lima
The eighth edition of the Peruvian event will take place in Lima during 11-12 August.
OCTOBER
SAGSE Gaming & Amusement Buenos Aires 2010
The leading Latin American expo will take place at the Centro Costa Salguero, in Buenos Aires, Argentina. Dates TBA.
