Leaving Macau, the new South East Asia gaming ‘tiger,’ aside, Latin America is the region with ample growth in most countries. Colombia leads the pack in regulated gaming, Chile moves smoothly with the construction of its 15 new casinos, and the tax authorities of Venezuela and Peru claim record gaming tax contributions thanks to new regulations.
Mexico goes on in its convoluted manner, with contradictions in both legislative and judicial gaming matters, while in Uruguay the country’s casino chief has to answer Court charges on some dodgy dealings.   Argentina, with a brand new lady president Cristina Kirschner, should just carry on with business as usual, as she is the wife of the current incumbent.
Fantastic best wishes to you all for the year end festivities, and hope to see you at London’s ICE 2008 from 22-24 January.
Cheers,

Ricki.  



APPROVAL FOR MONTEVIDEO HOTEL CASINO CONCESSION
At the end of October, the casino concession for the Hotel Carrasco was approved by Uruguay’s Finance Commission, to be followed by an extraordinary session of the upper house of government to ratify the measure that will re launch Carrasco’s flagship hotel. Established in 1921 on the ocean front some 18 kilometres outside Montevideo, the hotel was once a symbol for galas, gaming and fine dining.
The construction of the hotel began in 1912 and was granted a casino licence. However, global events such as the First World War caused the project to stall for several years. Designed by French architects Dunant et Mallet, and with the later collaboration of Uruguayan Felipe Elena, the hotel was built for entrepreneur Alfredo Arocena in the style of Europe’s most prestigious hotels.
The Beaux-Arts architecture, combining Greek and Roman influence with renaissance ideas, has created a building of symmetry and beauty, with tall towers at either end. The location of the hotel on the coast is magnificent and it is in easy reach of the international airport, making it a first class facility.
Last August the Montevideo authorities approved the privatisation of the hotel although the relevant law must first be passed. This law is due to be approved at the end of the month despite differences of opinion arising from conflict over the part previously played by the now National Director of Casinos, Juan Carlos Bengoa. Hotel Casino Carrasco is set to once again become a top tourist entertainment destination.

A MORTAL BLOW FOR PUERTO RICO CASINOS
It appears that the regulated casino gaming sector in Puerto Rico is about to be dealt a severe blow when video lottery terminals are approved for installation in hundreds of locations around this Central American island. The Senate president, Kenneth McClintock said that he will support the expanded gambling project after it has been approved by the House of Representatives.
The reasoning behind this support appears to be the presence of illegal gaming machines in Puerto Rico. McClintock said, “When we speak of illegal gaming machines we refer not only to those being operated without a licence but also those being operated incorrectly.” In this respect McClintock has a point.
However, more to the point is the fact that in this supposedly well regulated society gaming machines that give cash prizes, something not permitted under the law and licensing terms, are allowed to continue functioning. An estimated 20,000 illegal machines are operating in the country, compared to 12,500 legal ones.
McClintock’s illustrious political career commenced at just age 19 and as a university student, when he was named as a member of a committee at the House of Representatives. Since that time he has witnessed the proliferation of illegal machines in Puerto Rico. Whatever name they go under, these are Category II and III slot machines with cash payouts.
The Senate president should be asked whether two wrongs make a right, because a decision to introduce video lottery machines to replace illegal slot machines is not going to work. More likely the proposed 15,000 video lottery machines will be added to the 20,000 illegal slot machines, which would damage the casino industry in Puerto Rico and could damage society as a whole.
As Maria Ines Soto, vice-president of the Association of Hotels and Tourism that regulates the sector, says: “The approval of video lottery terminals will be a mortal blow to casinos and the 70,000 employees in the industry.” At the same time, dealing with problem gambling costs could make a considerable dent in the profits that lawmakers are anticipating from allowing video lottery terminal installation around the country.

PERU STARTS TO CLOSE ILLEGAL SLOT ROOMS
Following the campaign started by the Minister of Foreign Commerce and Tourism (MINCETUR), Mercedes Araoz, to formalise illegal slots operations in Peru and bring them into the tax regime of licensed gaming businesses, during the first weekend of November officers of the gaming commission, aided by local police, raided and closed down a slot machine hall in San Martin in the north of Lima.
The Director of Casinos and Slot Machines at MINCETUR, Manuel San Roman, explained that the owners of the Golden Room slot machines had not complied with the required legislation and had been operating illegally, after having been notified that their application for a licence could not proceed.   Inspectors from MINCETUR confiscated 44 slot machines found within the premises.
MINCETUR indicated that another 40 unlicensed slot machine businesses could also be closed in the next few weeks after due process of appeal had been completed.   The gaming Director of MINCETUR also said that at weekends the official inspections and closure of illegal operations would intensify.
San Roman was emphatic: “We have been working today, Saturday, and will continue to do so over the following weekends.   The slot machines we decommission that have not been officially homologated will be destroyed.   At the start of this campaign there were only 27 duly licensed slots operations, now there are 70.   These businesses are paying their taxes, and the US$1 million that we were collecting has risen to US$4 million a month.”

FADJA 2008 WILL CELEBRATE 10TH ANNIVERSARY
There are only five months left to go before you can enjoy the 10th Anniversary of FADJA. The strength of ten years is what makes this Andean gaming fair invaluable for commercial positioning on the international level thanks to the support provided by the founding companies: ETESA, R. Franco America, Atronic International, Heal Technology, Cash Code, Mundo Video and the Andean operators of casinos and bingos, who surely pointed the right way to reach this point in history.
FADJA has been productive in achieving the expansion of the gaming industry in the region and the arrival of the most important manufacturers of gaming machines, as demonstrated by the statistics from the 2007 event. 3A Productions, organizer of the event, has done much to defend the interests of the domestic industry in Colombia and maintain FADJA’s position as a leading show in the region.
As a result of this work, FADJA in its ninth edition reached important agreements on cooperation in marketing and advertising, with Reed Exhibitions AGA (American Gaming Association), organizers of the largest world fair, the Global Gaming Expo (G2E), which will bring benefits in the immediate future. For local customers and Latin American companies interested in maintaining contacts with the best commercial showcase on the planet, G2E is staged annually in November in the city of Las Vegas.
FADJA 2008 will provide very important additional value, with the presentation of the “First Training Workshop for Casino Administrators”, which is backed by international speakers from Gaming Laboratories International GLI.  Operators will be able to achieve a new level of professionalism, and it is hoped that this workshop will become an annual rallying point and recognition of those responsible for the operation and profitability of gaming facilities, with topics on marketing, public relations, responsible gaming, online systems, etc.
The Andean trade show brings together around 150 companies that offer the best products and services for the gaming business to operators of casinos and bingos in Panama, Venezuela, Peru, Ecuador and Bolivia. The Colombia event is recognized by regional institutions, and offers to project itself into a new decade, as a stable and secure event generating effective contacts and creating unique business opportunities thanks to the economic policies of the Colombian government.

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