A certain uneasiness prevails in having to start the year on a sore note, but some readers of our editorials on the CasinoCompendium.com site have requested that I print the piece I wrote on some operating and technology errors. What I can add as a further comment to the following piece is that technological development is all well and good, but it must be matched by constant personnel development and training:

“Before the advent of CCTV systems and when casino gambling was shaping up as an industry, mistakes had to be paid in real cash. The point is that when the house (the dealer) made a mistake, the customer used to get the benefit of the doubt, and was paid after an explanation based on the technical aspects of the game. The principle of this type of problem solving was based on judicious operating practices.

“During the course of thousands of gambling cycles in a night’s work, it is safe to assume that dozens of mistakes take place in a casino, mainly on the customers’ side. When a customer error is not detected, the house always benefits as a result. On the other hand, the house, which has to conduct play to the highest standards, after extensive and constant training of its personnel, would make up for mistakes by paying up, if the customer felt aggrieved and was not totally satisfied by the casino’s explanation.

“In these cases, the disputes went no further and the majority of players were none the wiser. The casino retained the confidence and goodwill of the customers, and this would translate into future revenue for the business. The argument that this type of problem solving was open to abuse was offered by operators whose training programmes and technical expertise was not up to scratch.

“With the rapid expansion of gaming worldwide and even faster technological development on gambling devices, there are operators who are happy to stand fast on operating errors by blaming the game software and pointing a finger to the sign that reads ‘malfunction voids all play’.

“During the last three months in 2006, casinos from Manitoba in Canada to Buenos Aires in Argentina have had machines announcing millionaire payouts, which have been deemed technological errors with the casinos refusing to pay the clients. Litigation lawyers and lobbies opposed to gambling have jumped on the bandwagon, and the industry in such locations have began to experience public rejection. The fact is that the public does not understand about ‘malfunction that voids play’ in cutting-edge technology devices, which is how the publicity hype describes these games.

“What about the operator? Well, they’re just fine! They are happy to point fingers to the ‘malfunction’ signs and hand over vast sums of money to fat lawyers to defend a bad situation. There is no question that the machines failed and showed payment errors, or that they just went ‘nuts’, as players say. What have also failed are personnel training in problem-solving for these type of errors, and customer training on how to play and winning expectations. Now public confidence, which is feeble at the best of times, lies in tatters.

“The fact is that most of the information on machine play talks up prize money and jackpots but not only lacks data on how to achieve such payments, but does not advise players to check out top machine payments or the malfunction rider. The fact is that the gambling devices are also designed by human beings who can make mistakes, irrespective of the cutting edge technology that backs up the product.

“And when an error or mistake is made it should be faced up to with intelligence and thoroughness, to assuage the customer’s anguish. You see, it’s so hard to obtain a sizeable prize in a casino, a jackpot or similar, that clients’ moments of triumph must be handled like a delicate china doll, not by pointing the fat greasy finger to the ‘malfunction’ sign. Above all, the house must use a surgeon’s sure touch and be prepared to resolve discrepancies with care and without lawyers.”

Cheers,

Ricki.

MEXICO SUPREME COURT TO APPROVE

GAMBLING REGULATIONS

The Mexico Supreme Court (SC) is ready to publish its ruling on the legality of the Lotteries and Gaming Regulations approved by the ex Government Minister Santiago Creel, who also enabled that office to grant gambling licences in the country. Creel’s questioned measures have been denounced to the SC by the Lower House of Congress, as the licences permit the operation of gaming rooms in race tracks, dog tracks, cock fighting venues, as well as online gambling.

The SC finding, which has been prepared by Minister Olga Sanchez Cordero, rejects the Lower House’s proposal on constitutional grounds. Sanchez Cordero has established that the executive has not acted against Mexico’s Constitution, as it has the powers to regulate and grant gambling licences.

The Lower House had accused ex President Vicente Fox’s administration of violating the Mexican constitution, but the SC is prepared to accept that the former administration only extended its brief by granting licenses to instant scratch lotteries. According the Sanchez Cordero’s document, only the National Lottery is able to authorize any lottery business. It is expected that the SC’s ruling will have been published by the end of January.

PRIVATE INVESTMENT FOR

MONTEVIDEO CASINOS

The local government in Montevideo, capital city of tiny Uruguay in South America, has started the process to allow private investment in the region’s Municipal casinos, which have been losing money for the past six years. In a business plan to propose the changes, government leader Ricardo Ehrlich has recommended the changes to the Economic Development Regional Unit, including voluntary retirement for casino and administration personnel.

The biggest problem with the administration of the Municipal casinos in Montevideo has been a dearth of modern skills and operational systems, owing to the bureaucratic format whereby aged civil servants are entrenched in operating positions, working without the skills necessary to operate modern casinos. So far, the authorities have made cosmetic changes in the running of the Municipal casinos, and these have not been able to stem the run on losses at the properties.

For over a year, since the losses were reported by the Montevideo government, we have suggested the privatization of the Municipal casinos to modernize and improve the gambling houses. It seems that at last some action to this effect is about to take place. In Uruguay, private investment in the Casino in Punta del Este and the Maronas race track have seen the emergence of modern and profitable gaming operations, which have benefited the local economies.

PERU GA HELPS REGULATORS

Freddy Gamarra, president of the Peruvian Gaming Association known as SONAJA locally, has said that currently the State receives revenues in the region of US $15 million as gaming tax. This is paid only by the 40 gaming operations duly authorized by local regulators. However, there are about 900 operations in the country, which do not pay tax as a consequence of court protection orders based on Habeas Corpus legislation.

Gamarra also said that SONAJA had proposed the new piece of legislation passed last December to reorganize the Peruvian gaming operations with the objective of increasing State tax receipts and obtaining proper authorization for the operations presently under Habeas Corpus protection and functioning outside Peru’s gaming legislation.

In the opinion of the SONAJA chief, the State would receive around US $45 million if some 400 gaming rooms were duly licensed: “We had always requested that the government bring into line informal operators, with the objective that everyone pays gaming tax and is treated as an equal, to eliminate the market imbalance that existed under the previous law”.

SONAJA represents most of the casinos and slot rooms in Peru, and according to Gamarra the organization maintains an excellent relationship with the Ministry of Commerce and Tourism, (MINCETUR), which regulates the gaming industry. Gamarra says that his group is ready to cooperate with the regulators in its efforts to license operators so that they come under full control and pay their taxes.

The current gaming situation in Peru, which has experienced an inordinate number of Habeas Corpus protection orders benefiting operators, is being challenged in the Constitutional Courts by MINCETUR. In an unprecedented case, the regulators have issued writs against the judiciary, accusing this institution of overstepping its rights into licensing territory, which is outside its jurisdiction, with the granting of unlicensed operating benefits to unsuitable persons under current gaming law.

GUYANA TO APPROVE GAMING LEGISLATION

The government of Guyana is to bring casino gambling legislation before Parliament on 11 January and expects the bill to be debated and passed without delay. The speed of the legislation is to facilitate at least one casino licence being granted before the cricket World Cup scheduled for March and April around the Caribbean, including Providence Stadium in Guyana. With casino licences limited to four- and five-star hotels with no fewer than 250 rooms, only one hotel in the country would presently be eligible - the US$10 million Buddy’s International Hotel and Resort under construction.

Guyana’s President, Bharrat Jagdeo, has stated that there are ongoing negotiations with other hotel developers for the construction of further hotels with casino facilities. Prime Minister Sam Hinds has held consultations with members of the country’s religious community over the question of licensing casinos. Guyana has a mixed population with many Hindus, Christians and Muslims and none of its religious leaders is in favour of any form of gambling. Representatives of tourism associations have so far not been consulted.

The government is promising to take measures to limit possible harm from problem gambling and to be vigilant in a constant assessment of the situation. It is thought that the casino legislation bill will not allow Guyanese to gamble despite the charge of hypocrisy, as many already gamble when they travel abroad. Full details of the draft bill to be presented to Parliament have not yet been published.

TV SHOW “NOCHES DE AZAR” WINS 5 AWARDS

Christmas arrived 10 days early for the magnificent people from the exciting gambling TV show Noches de Azar (Night Games), when they were winners of 5 ‘Gaviotas de Oro’ awards for the best FM and cable TV in Argentina. In an event organized by SADAP in Mar del Plata city, the production team of Excellence Group was on a roll, when five times over they took the podium to receive the awards for: Tourism Content, Journalism, Editor, General Interest, and Best Female Presenter.

As a matter of fact, when we did our turn for Noches de Azar in Buenos Aires, during the SAGSE 2006 show last October, we were just bowled over by the quality of the work on and back of stage. Charly Aciuolo and glamorous Patricia Alarcon were full of vitality, grace and charm in a programme that had both interested viewer contribution and full gaming technical discussion, and brought humour and sensitivity to the production at nearly midnight, after a full day at the gaming expo!

Patricia Alarcon said upon receiving the awards: “First I would like to thank everyone, and tell you that when we started with our little project about telling on live TV about the gambling and entertainment world, many people told us we were crazy. That is was unreal to speak honestly and with transparence about such an exciting industry, and that we should keep a low profile... After four years, I am here thanks to everyone who believed in our work, and to carry the message that gambling and entertainment is part of everyone’s life.”

On that late night in October, we witnessed a real star in the making, just as we had so many times before on stages from London to Johannesburg and the Caribbean. Patricia Alarcon has that rare personality that is quite unassumingly charming and seriously committed to the work at hand. Noches de Azar merits a larger audience, and the production team at Excellence a bigger challenge. Producer Jorge Nicolini has delivered a bright star to the gaming world and beyond. Congratulations to them all.

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