Panama is more gorgeous than ever, with a vibrant feeling of success and development, which the government of president Martin Torrijos is translating into investment and civil engineering projects for executive housing and tourist resorts. Everyone’s confidence in the country brought a huge referendum majority for widening the Panama Canal, which starts next year with investment in excess of US $5 billion.

Self described as a Las Vegas type property, Veneto Hotel & Casino could well have become leader in the country’s hotel industry. The difference is that while Las Vegas properties are run by experts, the Panama emulation has had deplorable management in both hotel and casino since towards the end of 2005.

While El Panama Hotel retains its accustomed charm, and the former Caesars Park, now a Sheraton hotel by the Atlapa Convention Center, reflect a sensible hospitality offer, Veneto has not been doing well since it opened and I have stayed there four times already. This time, though, my reservation was mislaid, the room was not cleaned and the wireless service was practically nonexistent.

All the while that I requested service the presence of middle management was like its Internet service, and the resigned attitude of the Tourist Board officer at the airport certainly suggested a situation that must be a constant to the hotel, which does not reflect the five stars it claims.

Sagse Centroamerica 2007, however, has some exhibitors entirely happy with the event, and Nicolas Dienot from GPI was most complimentary on the results. Another happy guy was Klaus Schwerbrock from Merkur Gaming from the Gauselmann stable in Germany, who sold his products to overseas clients including operators from Puerto Rico, where this year’s event was cancelled by the organizers.

Last but not least, though, dynamic Boss Gaming president Linda Monzon, said: “Unfortunately for us, we had zero inventory in our electronic roulettes, and could not exhibit them here, but as we have installed one at Codere’s place at the race track, we took two clients there, and sold two roulettes!” Impressive indeed! Well, the Boss products are surely on a roll, and hopefully, the new Veneto owners will have the hotel rolling upwards by this time next year.

Cheers,

Ricki.

THUNDERBIRD BUYS HOTEL CHAIN

IN PERU

In those dim and distant days, when Darkest Peru was an apt name for a country beset by spiralling inflation and devastating bomb blasts set off by Maoist guerrillas, the Americas Hotel in Lima seemed a landmark in a saner world. Since then Peru has recovered its equilibrium and in a relatively stable economy is experiencing steadily increasing GDP, up 7.7% in 2006 with similar growth anticipated this year.

Thunderbird Resorts Inc. is taking the opportunity to acquire Las Americas Hotel and five other hotels in the Hoteles Las Americas chain, investing US$43.5 million. In May, the company that lost out on its bid to acquire casino licences in Chile almost before the process began, announced that it has won its bid for the Peruvian hotels. Total cost for the new subsidiary, Thunderbird de Peru, to include closing costs and refurbishment is expected to be around US$60 million.

The six hotels – four in the prime commercial/residential area of Miraflores, one close to downtown Lima, and a convention resort built to resemble an Andean village just 15 km outside Lima – will undergo improvements to the technological systems, including Internet and cable TV. Of course Thunderbird is known as a leading provider of branded casino entertainment, beginning in Guatemala in1997 and now a prominent operator in Panama, the Philippines, Nicaragua and Costa Rica.

There were six other bidders for Hoteles Las Americas, including NH Hoteles. Thunderbird de Peru will examine the viability of placing casinos in up to four of the hotels, anticipating that one of the locations – most probably the original Las Americas – can offer the facilities to become the premiere entertainment and casino property in Lima, subject to approval.

GAMING LEGISLATION PROJECT FOR BOLIVIA

The Bolivian National Lottery has presented a draft bill aimed at regulating gaming in the country and putting a stop to the illegal operations, violation of the law and loss of taxes by the state. Parliamentarians will consider the proposed bill, which would ensure the financing of public health through gaming tax.

The new law would also provide finance for the state from the additional company taxation. Laura Encinas, executive president of the National Lottery, explained that the draft bill removed various loopholes existing under the present law. Operators would have to pay a special gaming tax on all income generated by gaming after payment of prize money.

The bill grants the regulation of gaming to the state; strengthens the National Lottery and creates new taxes. It has been drawn up to promote a legal framework, transparency, acceleration of the licensing process and the free granting of licences, which is not unusual in South America where the right to do business usually incurs no charge.

The National Lottery is granted the powers to adopt measures against exclusivity, monopoly and cartels. It will also supervise adherence to the regulations and prevent the proliferation of illegal gambling operations. If the bill becomes law then the authorisation of licences in Bolivia for all gaming machines will be suspended for six months, except for those already fully licensed.

Those businesses that are duly licensed will have a period of 60 days to ensure that they comply with all aspects of the future law. Parliament has been considering the problem of regulating the gaming industry in Bolivia and state control has been proposed as it has more resources, particularly in the collection of taxes, than the National Lottery.

CASINOS CLOSE AFTER COMMANDO-STYLE RAIDS

Mexican legal, quasi legal and illegal casino operators suffered serious losses after a weekend when at least six casinos were attacked by commando-style groups of criminals, who also robbed casino clients, workers, and machine-gunned electronic gaming devices. More than 10 casinos in the states of Monterrey, on the US border, Veracruz and Coahuila remained closed fearful that other raiders might wreak havoc in their casinos.

Of course, we are talking about the legal Caliente casinos or betting parlours that are owned by the powerful Hank Rhon family in Veracruz, the quasi legal operations in Monterrey and Cohuila; and the illegal joints, which don’t even attempt to call the police because they shy away from anything official. In all, millions of pesos and hundreds of thousand of dollars have been stolen, people have been hurt, and public credibility for the gambling operations has seriously suffered.

I expect that while local police officers are just about chewing on toothpicks and clacking their teeth with the blank look of those who have missed the opportunity of taking some of the cash, some Mexican politicians refuse to take phone calls from the gaming lobbyists, fearful of not being able to deliver the Federal Law of Gaming and Lotteries, for which plenty of cash has already passed fat hands.

The attacks on the Mexican gambling operations are symptomatic of a political system that does not recognize what is more than obvious to any layman: Mexico is riddled by criminal elements in everyday shady gambling, and is in urgent need of modern gaming legislation. And not the political and economically accommodating ‘democratic regulations’ to the 1947 gaming law produced by ex-Interior Government Secretary Santiago Creel, which is being used and abused by all and sundry.

More than anything, the people of Mexico need the protection that proper gaming legislation is able to provide. The attacks during the weekend saw members of the public and casino workers fall under military weapons such as AK47 machine guns in synchronized attacks on several casinos.

Either the casinos are at each other’s throats in gang warfare, or the criminal elements know that lack of regulations means that there is a free-for-all on soft targets, where makeshift operators have no concept of casino security with all the developments and applications in this most important of gaming disciplines. Most of the raided casinos remain closed as if to say: “No proper licensing, No way Santiago!”

INVESTORS FLEE VENEZUELA’S

GAMING TAXES

In April Venezuela’s National Assembly approved an increase in the amount of tax payable for each slot machine in casinos, bingos and slots operations. The tax was raised by almost 1000%, up to around US$3,440 per machine per month, with a minimum US$172 payable.

Less than two months later the National Assembly has rethought the new tax regime and not, as could be expected, to bring relief to the beleaguered gaming industry. The minimum now payable on each machine is some US$688, all in the national Bolivar currency and practically without any rights of reclaim.

The lack of criteria demonstrated by the National Assembly, who echo the will of President Hugo Chavez in his zeal to close the casinos by imposing horrendous taxes that could be described as confiscatory, has already started to frighten away investors in the tourism industry. They find a much better climate for investment in neighbouring Colombia, where both the economy and the tourist industry are in good shape.

It is not surprising, then, that while the company Unidelca has begun a US$70 million resort casino project in Medellin, Colombia with hotel, casino, commercial centre and restaurants, there is not one cent being invested in similar projects in Venezuela. No money for the tourism sector and no new jobs. Worse than this is the fact that jobs are being lost in the gaming industry as it retracts in the face of an imminent demise.

The text of the modified tax law for gaming also indicates that sports betting will be taxed between 6% and 10% over the amount bet each month. All other forms of betting will pay between 30% and 50% of gross gaming revenue. The changes, including the extra machine tax, will be applied from 1 July. Before then many operators will be considering their options and, if nothing else, be reducing their slot machine numbers.

MINI EXPO AT GAMING BUSINESS ROUND

On July 12th Monterrey, the capital city of the border state of Nuevo León, will host the first GAMING BUSINESS ROUND MEXICO, at the state-of-the-art CINTERMEX convention center.

Notwithstanding the previous raids piece, the importance that this market has achieved has allowed the re launch of the new format of 30m2 trade stands with a 100-metre platinum sponsor area. The one-day event offers participants five hours (3pm to 8pm) of direct contact with the main regional operators in Room A of the Monterrey complex.

Technical training will be another crucial aspect of the GAMING BUSINESS ROUND MEXICO. A professional training course will be held in the morning, addressed to casino managers. The program will be completed with a luncheon engagement for Mexican businessmen, authorities and manufacturers.

José Aníbal Aguirre, director of the Mexican event said: “We thank local authorities, as well as the companies that have had links with us up to the moment, and all the staff currently inviting and gathering local operators. The great support of CINTERMEX and Monterrey managers, augurs well for a productive business and networking event for the international and local industry, through this first social and commercial trade event for the sector in this important market”.

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