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Latino America - English edition
The English edition of Ricki Chavex Munoz's regular Latino America column for Casino International.
Published:  01 April, 2007

It may seem like Colombia is Flavour of the Month, but truth be told, this country in South America is just going through a tourist and development vortex, specially in glorious Cartagena on the Caribbean. We’ve just done a three-week trek from Bogotá to Medellin, Bucaramanga and Cartagena, twice, and we have really liked what we have seen.

To start with, this is a special year for literature icon, our much loved, Gabriel Garcia Marquez, who was 80 last March 6, and during the course of this year celebrates 40 years of publishing “One Hundred Years of Solitude”, where Macondo transcends its microcosm to generate universal angst and magnificent lore. Also, it is 25 years since the Swedish Academy awarded the Colombian writer the Literature Nobel for capturing from his imagination a narrative that lights up and flourishes every time, when again and again we reach for our much-read copies of his legendary work.

In Colombia, we visited the UNIDELCA operations run by dynamic Carlos Quinteros, who is developing some truly impressive projects for Bogotá and Medellin. We witnessed in the UNIDELCA casinos the company’s impressive wide area progressive Red de la Fortuna, which several times during the day announced prizes to their clients throughout the country.

We had to return to Cartagena, gladly, when we received a press release from the lofty offices of Frank Fahrenkopf Jr., American Gaming Association, CEO, that Las Vegas expo G2E had signed a cooperation agreement with FADJA, the Andean Countries Gaming Expo, which we refer to in more detail below.

Also in Cartagena we met Jess Chavez-Munoz, ops manager for Casino Maruma at the Maracaibo Plaza in Venezuela, who was taking a well-earned break at the always fashionable Hilton Hotel in el Laguito. It was also great to meet old gaming buddies, and go round the old city in a picturesque Chivas rum-swilling bus, visit Café del Mar atop the 16th-century city walls, Cuban eaterie and live salsa hot spot La Vitrola, swinging El Arsenal bar, and drinking some cool Mojitos at the garden bar on the Caribbean shore.

The greatest part of my trip however, came from a comment offered by a European travel operator, who showed her preference for Colombia when she described the country as ‘developed’, as indeed, it was wherever we went. And we’ll be back for the FADJA 2007 from April 11, or before for some more unbelievable action at Andres Carne de Res, and back to El Laguito playground… Flavour of the year more likely!

Cheers,

Ricki.

FADJA 2007 AN ALL AMERICAS SHOW

As soon as we received the news announced by Global Gaming Expo (G2E) from Las Vegas that it has entered into a co-marketing agreement with Andean Gaming Fair (FADJA) to provide mutual support, we traveled to Cartagena to talk about this momentous deal with Jose Anibal Aguirre, organizer of the Colombian event that will be held on 11 and 12 April 2007at the Corferias expo centre in Bogotá.

Under tropical sunshine and Palms trees in a restaurant worthy of several Michelin stars, JAA confided in us that he had been quietly working for a couple of years to enter into the agreement with G2E. As you can imagine, it was a joyous luncheon, and after the customary glass clinking, we moved on to more urgent topics like FADJA 2007, which JAA said counted with: ‘the participation of 26 countries and 120 companies’.

JAA told us that FADJA 2007: “Is getting organized for this ninth edition to gather in one point the latest gaming scientific and technological advances in a showroom, which is ideal for regional manufacturers and operators to make deals galore, as a great number of gaming devices, components, multi station electronic roulettes, and other gaming equipment has already been warehoused at the Bogota Free Zone controlled by the local Customs & Excise authorities (DIAN)”.

Aguirre added: “We will once again meet the expectations of the manufacturers present in FADJA, thanks to the careful marketing campaign and the invitation to Andean operators which was carried out. This took us to Panama, Peru, and Venezuela in 2006 and Ecuador in 2007, directly inviting the entrepreneurs of these important countries to visit and program their investments in the gaming show with the greatest projection, effectiveness and stability of the region.”

FADJA 2007, the traditional Andean gaming expo continues to count on the institutional and governmental support of the following local agencies: Territorial Health Company, ETESA and DIAN in representation of the national government and with the support of the major Colombian guilds, FECEAZAR, FECOLJUEGOS, CAMAZAR, FEDELCO and ECOJUEGOS.

On the international front FADJA can count on the support of the LATIN AMERICAN ASSOCIATION OF GAMES OF CHANCE, ALAJA, the VENEZUELAN CHAMBER OF BINGOS AND CASINOS, CAVEBIN, and the ASSOCIATION OF CASINOS AND BINGOS, ASCABI from Ecuador.

Finally, in the JAA said that: “There are many new things and good prices to find at FADJA 2007, which will meet the expectations of around 2000 daily visitors who come to view new products and do business. Approximately six million dollars are expected in new contracts arising from the opportunity to sell at FADJA 2007.”

 

SUN INTERNATIONAL EXPANDS

INTO CHILE

Both casino companies are based in some of the world’s best wine producing regions, France and South Africa, and they are now involved in a third up and coming wine region in Chile. Sun International has announced an agreement with International Group of Gaming & Resorts (IGGR) to acquire, subject to regulatory approval, a 40% equity interest in San Francisco Investment SA, the company that last November was granted a 15-year casino licence in Chile’s Region VI. The Novomatic Group, the Austrian-based gaming manufacturer/operator, is also part of the Chilean company.

The Paihuén Casino & Resort will be located in San Francisco de Mostazal in the central region of Chile some 35 miles from the capital city Santiago. The Santiago region, where casinos remain prohibited, accounts for 45% of the country’s GDP. Being the casino project closest to the capital, Sun International considers that the licence is for the prime location in Chile. The company will derive long-term management and consultancy agreements for a casino with a market of over 6 million people in Santiago and the Region VI capital Rancagua.

The casino resort in Mostazal will have 80 gaming tables, 1,500 slot machines and 300-seat bingo. The project beat competition in Region VI from Spanish company Cirsa and Chile’s leading operator Enjoy, both bidding for licences in Rancagua, although a second Region VI licence has been granted to a group that includes Enjoy in Santa Cruz. Paihuén Resort will have a hotel, restaurants, disco, convention centre, commercial centre and theme parks and sports amenities to attract family visitors. The complex is scheduled to open in 2008 at a cost of US$60.7 million.

For some time Sun International has been looking to expand internationally. Projects in the UK have been delayed and another in the Moscow region of Russia now looks unlikely to materialize. IGGR has casinos in France and is the third largest gaming group in Argentina, where the company has bingos and slot machines. It also has three casinos in Egypt and other operations in Curaçao and Ecuador. The Novomatic Group includes Austrian Gaming Industries (AGI) and Swiss company Admiral Casinos & Entertainment (ACE), and operates over 30 casinos and gaming venues around the world, as well as being a leading gaming equipment manufacturer.

 

BOLIVIA GETS CLOSER TO

REGULATED GAMING

In Bolivia a presidential decree made by ex-president Sanchez de Lozada in 1996 once again authorized slot machines in local shops and arcades that open early in the day. In some cases licences have been sub-leased, which explains the large number of slots businesses in the country. There is now a government project to regulate this activity.

Bingo, video poker and all sorts of slot machines are functioning in various districts of the capital La Paz, in venues with or without licences. They attract players of all ages and betting is unrestricted. According to the Bolivian Lottery, when machines are installed in one location at least 40 others start operating even though only around twenty companies hold licences. This is without counting the operations running on the subleasing of licences.

In Avenida Michel an Internet café with a slot machine operates between two educational establishments. For its owner it is just ‘like having a telephone kiosk.’ Not even in the inner city area, where the locations are more visible, are there any restrictions on access. The businesses open from first thing until the early hours of the next day.

Vice Minister for Health Albert Nogales said, “It is this activity that the present government is trying to regulate with the approval of a law to redirect the functioning and mission of the Lottery.” The objective is to use the taxes to finance health programmes for kidney and cancer patients. At present the system of control involves neither the Police, nor the Municipality of La Paz.

PUERTO RICO TO BENEFIT FROM RIVERA DAVILA’S SKILLS

Hector Rivera Davila has been named Executive Director of Gaming for Puerto Rico by the Tourism Company of Puerto Rico. Mr. Rivera Davila was a former regulator before serving the private industry as Casino Director with Hilton International, Marriott International, and Ladbrokes, then with International Endeavors in Puerto Rico and South America. The Puerto Rico Tourism Development Act of 1993 was enacted to provide the Government of Puerto Rico with adequate tools to develop a world-class tourism infrastructure in response to an increasing demand for more facilities to accommodate a new generation of business and leisure customers.

It is a rare selection by a gaming regulator to appoint a gaming operator, and in this the Puerto Rico tourism organization has made an outstanding choice. As an Associate of Spectrum Gaming, a renowned international casino consulting firm based in New Jersey, Mr Rivera Davila has also contributed towards the formation of new regulations for Puerto Rico, which will become effective during 2007.

At the Tourism Company, Mr Davila said that he “will implement a new slots monitoring system linked to all casinos from the Games Division office, overseeing the security and integrity of the systems in casinos, with strict regulations to attract serious investors to develop more hotel projects within our island. We have the most sophisticated controls in the Caribbean Region and we will be a role model for others to follow”.

 

SAGSE BUENOS AIRES SIGNS UP ALL EXPO SPACE

Growing 20% compared to its previous edition, SAGSE Buenos Aires 2007 (October 3, 4 & 5) will fully take up Costa Salguero Exhibition Centre’s six pavilions totalling 20,000m2. Based on its dimensions, quantity and quality of exhibitors and visitors this exhibition is now considered the third most important event on the global gaming calendar and also “The Gateway” to the vibrant Latin American gaming market.

The massive presence of Argentinean and Latin American manufacturers that only participate in SAGSE allows visitors to have the most exclusive and diverse supply of products. Companies that have participated in former editions have shown through surveys that the volume of new contacts and sales during the show has been unbeatable. This illustrates that SAGSE is the most international event and should not be missed.

This 2007 edition will be the debut for some important companies such as Austrian Gaming Industries (Novomatic), COEECSA/Grupo Cattan, Rede Wireless, among others, certifying that SAGSE is the most attractive expo in Latin America. 80% of the exhibition area is already taken and it is anticipated that in a short time everything will be sold out.

It has also emerged that SAGSE will be finalizing an important agreement with an Asian organization in order to create a pavilion that gathers together companies from this continent in this 2007 edition.


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