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Latino America
Ricki Chavez Munoz reports on what’s happening in South America
It is difficult to cover some items in much depth in a column such as this, especially news and items on Latin America’s premier expo, so we shall leave the SAGSE Buenos Aires 2011 review to the Jan/Feb 2012 edition of sister title Casino International Americano. Nonetheless, there was a cathartic moment during one of the conferences in the Encuentro Yogonet Ey!11, which runs on parallel with the show when speaker Nicolas Dienot, director of Clover Gaming opened our eyes a bit more with his presentation “Myth and Reality in Gaming”.
Without touching on any specific point of Dienot’s address, the comment we make refers to doubts expressed by the French-born Latin American expert on some perceived assumptions that new cutting edge technology applications may impose on the industry, either through technological or human shortcoming.
We have published an item on the existence of over dependence in modern technology by Security experts, recommending that technology should be only a complement to the work done by personal crews, because this is where myth and reality do clash in a casino operation. The point made is that an exaggerated use of the latest technology gadget can bring about anxiety and loss if there is no response or defective use of the fashionable device, whether these are the result of human error or deficient design.
2012 is gearing to be a busy year for the industry and we trust that Latin America sustains current growth with new casinos for Peru, Colombia, Panama and Paraguay, just for starters; and I can imagine that we’ll have more good news on this account when we next meet during the London Show at ICE 2012 on January 24-26. Here is wishing you an enjoyable family Christmas plus a fantastic and fortunate New Year.
Cheers,
Ricki.
Costa Rica president forgets electoral promise
New casino legislation was one of the principal promises made by the ex-Justice minister, now Costa Rica President Laura Chinchilla, when she was in full electoral campaign. The new casino legislation was promised as the engine to generate income from taxation to fund much needed national security programmes in the country, and would include levies to all gaming operations especially remote and online companies operating the so called “call-centers”, that for decades have Costa Rica as a business base.
New gaming legislation projects have been mired in commissions who seem to seek new interpretations to the meaning of gaming and life, as Chinchilla’s political allies fret and posture for celebrity status instead of dealing with diligence to bring about the gaming legislation changes Costa Rica needs.
As never ending discussions on the Project 17551 called Regulation Act of Betting, Casinos and Gaming to control on and off line operations in Costa Rica continue to mesmerize Chinchilla’s ministers and legislators, the Finance Commission approved early in November a consolation change on tax to gaming houses of US $300 to gaming tables operating up to ten hours and US $500 when they exceed this time. And still nothing about a “call-center” gaming levy.
Last June, the Fracción del Partido Liberación Nacional (FPLN), proposed Gaming legislation changes to the Exchequer Commission expressly vetting electoral campaign contributions from “gaming licence holders to political parties whether direct or through another means for use as political candidates”. The FPLN proposal also included a yearly tax to ‘call-centers” at US $250,000, and monthly tax to each gaming table of US $300 and slot machine at US $150.
However, Chinchilla’s government officials and political allies have turned procrastination into a habit when dealing with the new gaming law in Costa Rica, where all that is needed is the political will to expedite this necessary piece of legislation. A far cry from the heady days on the joustings when the security of the country was a promise and a priority to the ex-Minister of Justice on her way to the presidential chair. President Chinchilla just needs to impose her much vaunted will to put her minister and allies in line and gets this much needed gaming law into being.
COLJUEGOS is the new regulatory agency in Colombia
A new Industrial and Commercial State Company to be called COLJUEGOS, under the Ministry of Finance and Public Credit, will be responsible for regulating the operation of the gambling industry in Colombia, replacing ETESA, which is in the process of being liquidated. The new body will start operations on 1 January 2012. It is hoped that it will be successful in combating illegal gambling as well as securing gaming tax compliance.
The National Government’s decision is part of a restructuring of several state agencies seeking greater efficiency and control in public administration. The COLJUEGOS President will be appointed by the President of the Republic, Juan Manuel Santos, and the organization will be managed by a Board of Directors and several vice presidencies.
Juan Carlos Echeverry, Colombia’s Minister of Finance, wants to increase the present $400,000 million Colombian pesos (US$210 million) collected annually for the health and welfare of the country’s citizens from the operation of gambling and betting businesses. Stating that this amount was not adjusted to the actual revenues generated by the exploitation of gambling and betting in Colombia, Echeverry’s plan is to collect some 2 billion pesos (US$1,040 million) within a period of two years.
Buenos Aires in Battle of River Plate with floating casinos
Just when the Autonomous City of Buenos Aires thought the battle was won over the River Plate casinos, “Estrella de la Fortuna” and “Princess”; enters judge Pablo Cayssials, to grant an appeal presented by Casino de Buenos Aires S.A., owners of the vessels anchored in the middle of the Argentine capital city entertainment district Puerto Maderos, with a volley of contentious legal arguments to outflank the city officials who were ready to tax the casinos that have been outmaneuvering the city in a legal case that dates back to 1999.
It is difficult to escape this nautical nightmare for the city of Buenos Aires, as it has claimed all along that Cirsa, the Spanish casino giant, had anchored its highly profitable mini armada in the city itself in the River Plate and not in national territorial waters, as claimed by them, which in effect gives the federal government licensing and taxation rights over the local Buenos Aires government.
The appeal granted by judge Cayssials to the owners of the River Plate floating casinos, has stymied the Supreme Court ruling that in mid-October ruled in favour of the City of Buenos Aires, quashing the Cirsa 1999 appeal. Now city officials have vowed to counter appeal on this never ending legal skirmish so that Buenos Aires can claim a stake on yearly taxes that amount to some US$74 million and the tax backlog since 1999.
Quite appropriately, the Supreme Court had ruled in favour of the City of Buenos Aires declaring that as “abstract” the decision to grant national status to the city waters of River Plate. In a country where there have been some highly questionable gaming licensing decisions, another one by the now called “Juez Caiman”, in a company with strong links to ex-president Kirschner, sets the scene for a bitter new Battle of River Plate, which this time has spilled into the Argentine court rooms and the dingy corridors of power.
CGS 2012 presents a brand new team
The organizers of the Caribbean Gaming Show 2012 have announced a brand new team for the production of CGS 2012’s 4th Edition. Elizabeth Leiva CEO of the event says that both exhibitors and visitors will benefit from the addition of Carmen Valverde in marketing and Peter Stephen in production to the experienced CGS team, where Martha Garcia is Show Manager and Gonzalo Cayo in Corporate Services.
Elizabeth Leiva, adds: “After all these years developing the Caribbean market, this gaming show is going to hit in all islands and countries of the region. More and more companies are now joining our Show, which this year is moving to a better location in the heart of Santo Domingo city. A 5-star hotel will receive all suppliers and buyers from more than 24 countries, who are looking to expend 2 days of business and relaxation.”
The Dominican Republic with more than 60 casinos, the Casinos Association and a new Gaming Commission on board, is going to open its doors next March 21-22, 2012 in order to reinforce its supremacy in the region. The newborn Caribbean Gaming Association will sponsor this event. Trade Show, Round Tables, Conferences, International Press, Operators, Vendors, Regulators, and lots of fun and entertainment, in a country that has it all!
Leiva adds: “Join us and be part of this great Show… is it something better than a Gaming Show? Yes it is! It is a Gaming Show in “The Caribe! Do not hesitate to contact us for further information.”
