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Latino America - English edition
Ricki Chavez-Munoz reports from Latino America, bringing you the lowdown on happenings in one of casino gaming's growth areas.
Published:  01 September, 2007
Novomatic's stand at the Peru show in Casino International

We are just closing this edition, minutes after the close of Peru Gaming Show 2007 in Lima, which each day finished up with a supreme music presentation from a local band of international renown. On the fifth edition of PGS 2007 Elizabeth Leiva and her team at Business & Leisures managed to increase exhibitor and expo space, but more on this in our final piece below.

This year Casino International makes the journey to Buenos Aires in October with a Special Edition for SAGSE 2007. In this way the Argentine event joins the other two major world events – ICE in London and G2E in Las Vegas – that also have a special issue of the industry’s leading magazine, confirming the event as the third in the world. SAGSE 2007 has grown yet again, and taken all available space at Costa Salguero expo centre for its 3-5 October date.

In Lima we visited Atlantic City Casino’s elegant salons and dining rooms, which opened last March, and can confirm the arrival of additional foreign gaming investment companies for new casinos in Miraflores and other cities. At PGS 2007, German manufacturers Gauselmann Group were exhibiting its Merkur Gaming brand at the Boss Gaming stand.

Less than a mile away from the Jockey Plaza CC, which hosted PGS 2007, we visited Polo Slots, property of Corporacion Meier. The property is undergoing extensive refurbishment as it gets ready to install the electronic roulette it acquired at the expo from Boss Gaming. Congratulations to Luis Fuentealba, Corporacion Meier president, and Linda Monzon, Boss Gaming president, on the first deal in the country for the European firm.

In Bogotá we looked after some European investors aiming to enter the Colombian market, while all we kept hearing was woeful news from neighbouring Venezuela, where operators are really going through some bad times. Hopefully the efforts from all concerned will find a way to mitigate serious fiscal problems and reduce the huge gaming tax burden on bingos and casinos. See you in Buenos Aires.

Cheers,

Ricki.

 

REGIONAL GAMING ASSOCIATIONS MEET AT SAGSE 2007

The Argentinean-based Latin American Gaming Association (ALAJA), the Argentinean Chamber of Commerce for the Gaming Industry (CAIJA), and the South American Gaming Suppliers Expo (SAGSE) have confirmed invitations to gaming executives to the first congress of Latin American gaming associations, to take place on 5 October 2007 at the Costa Salguero Convention Center in Buenos Aires. The meeting will be held at the 15th annual gaming exhibition SAGSE Buenos Aires, which will take place during 3-5 October.

The prime objective of these institutions is the interchange of knowledge and experience obtained in the different countries of Latin America, and then to compile and document them in a publication that will aim to bring about legal security in the gaming sector. The outcome of the congress should be a long-term stable legal benchmark for the industry, operators and investors.

Titled the ‘Primer Encuentro de Asociaciones Latinoamericana de Juego de Azar’, the event seeks to find important and reliable data on the Latin American gaming market, and to share this information with the different gaming organizations. The Latin American Associations will use this information to promote the gaming industry, which is an engine of large-scale investment and creator of many jobs and tax revenue, and consolidate its role as an important agent in its efforts against illegal gaming.

 

STEP TOWARDS LEGALISING CASINOS IN MEXICO

During the first week of last month, after an hour and a half of debate, the Monterrey Council in Mexico approved, by a majority vote, the setting up of a special commission to investigate whether the betting halls opening in the city are conforming to regulations. The commission will be made up of nine councillors from the different opposition political parties and six from PAN, the party in power.

The Mayor of Monterrey, Adalberto Madero Quiroga, said, “The Commission is formed from four political parties and they will analyze and hold discussions to determine, each time a company presents an application to open a betting business, whether that company has complied with all regulations. The Commission will act freely and independently.”

Secretary of the City Council, Marco Heriberto Ruiz-Velasco, confirmed that two applications for casinos had been received by the Secretary of Urban Development. “The City Council has yet to receive any application. I know that in certain proceedings at Urban Development mention has been made of the City Council being in favour of casinos, but obviously the Department of Urban Development is not the authority to resolve this matter.”

Ruiz-Velasco concluded by saying that of the 21 betting halls that had been operating in the city, four had been closed. Recently six betting operations in the city were attacked by criminal gangs, causing fears of an escalating casino war. The moves the Monterrey Councilors are taking to ensure a well-regulated gaming industry in their city are not before time, as the Mexican Congress appears content to allow the gaming sector to remain immersed in legal apathy.

 

FADJA TO CELEBRATE 10TH ANNIVERSARY

The organizers of FADJA 2007 have announced the realization of the tenth annual event for April 2-3 at the Corferia expo centre in Bogota, capital city of Colombia. The event has achieved broad appeal and excelled in public relations work with government bodies and gaming associations in Colombia, Peru, Venezuela, Ecuador and Bolivia.

Industry professionals interested in attending or in exhibiting equipment, services and products for the gaming industry for the Andean Region are able to visit and confirm their spaces on the website www.fadja.com, where they can find the different ways of participating, through the leasing of stands, the presence of brands in advertising pieces, registration in academic spaces or registering as visitors.

FADJA’a 10th Anniversary event is sponsored by ETESA, Colombia’s state gaming control company; Fundacion Exportar, and many reputable companies associated within CAIJA from Argentina; the gaming federations FECEAZAR, FECOLJUEGOS and ECOMUEGOS from Colombia, CAVEBIN from Venezuela, ASCABI from Ecuador; and the Latin American Gaming Association, ALAJA.

General Director of FADJA Jose Anibal Aguirre said: “We are very happy to count on all the governmental, institutional and commercial support from 120 companies who were with us this year, and who have confirmed their presence in FADJA 2008.” Once again BETSTONE is the official sponsor and G2E, the Global Gaming Expo, the institutional sponsor.

 

48,000 FAMILIES AFFECTED

Following last month’s emergency meeting between bingo and casino operators and the head of the Venezuelan Inland Revenue (SENIAT), to discuss the new gaming law that was enacted at the beginning of July, it has been established that around 48,000 families will be affected by the possible closure of businesses through prohibitive tax measures. Earlier the head of SENIAT, Jose Vielma Mora, had practically accused operators of tax evasion when tax revenue fell in May and June.

The Gaming sector’s association in Venezuela, which represents over 85% of the nation’s gaming establishments, claims that the exorbitant new taxes imposed on each slot machine and gaming table make it impossible for most operators to continue. The association plans to meet again with Vielma Mora to seek clarity on the new law and find a solution to what they see as an unjust law that requires tax of US$1,750-US$3,500 per machine per month.

One suggestion that has been made is to set different taxes for the different regions of Venezuela. Another suggestion is to make gaming tax a percentage of revenue rather than a set tax on each machine. On the tourist island of Margarita one company is going ahead with the expansion of its casino. Gaming operators there have always demanded a separate tax regime because the islands have virtually no other industry than tourism attractions.

 

PGS 2007 GROWS 1,200%

It’s always edifying talking to Elizabeth Leiva, General Manager of Gaming and Leisures, the company that organizes the Peru Gaming Show in Lima. As the expo closed, we had a few words with Leiva, who confirmed: “We have grown 1,200% in five years. Last year saw completed sales of US$7million, and we expect to double that this year.” That simple!

It is usual to find innovating elements at the Peruvian expo, and Leiva also reminded us that PGS 2007 is the first show that could be followed online, adding: “We have caught the attention of new gaming sectors, such as sports betting and online gambling, with two of the largest operators: Betstone of the UK and Bet Cris of Costa Rica, which with more than 20 years in the sports betting business was one of the first companies in the online sector.”

Pointing out that Casino Technology has tripled its space at this year’s show, Leiva went on to name some favourites taking advantage of the opportunity to sell in the South American market: Novomatic, Belatra, Suzo Happ, Kubuk, Casino Technology, Unidesa from Spain, KSI from Russia, Boss Games, Astrocorp and Games Movil. She gave a special mention to the fabulous signs of Imagination South America.

It’s difficult to stop Leiva once she has embarked on her favourite topic, and even had a mention for a company which could not make the show!: “ACE from Korea, a company now with offices in Lima following a successful introduction into the local market, unfortunately could not exhibit through lack of time, but they have contracts in Peru and will shortly be installing the country’s first virtual horseracing game. The Peruvian market is the most regulated in the region, and has overcome its problems with the total support of the Government. Peru has a vibrant gaming market that is continuing to grow.”

Effectively the Peru Gaming Show 2007 presented the most important companies in the gaming industry, as well as those interested in the introduction or strengthening of their brands in the Peruvian market. The show is also bringing buyers and sellers from neighbouring Chile, a country in the process of implementing new licences granted for integrated casino resorts.


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