We’re just too busy as Latin America is going great guns all round, with sustainable economic growth in most countries, and fantastic new development of properties in the gaming industry. Chile alone should open nine new casinos during 2008, plus two or three in Peru and a similar number in Colombia. And believe it or not, Venezuela will also open one or two others!
There is no doubt also that the companies granted licenses by the State Department in Mexico (Secretaria de Gobernacion) will also open new betting rooms, but whether this is considered to be a carte blanche for just about anyone to set up a gambling shop anywhere as if they were in an informal market, is another story. There is an extensive piece on this matter in our piece below.
Anyhow, we hope to see you in London, which is one of the fun capital cities in the world, and where there is something for everyone.
Cheers,

Ricki.


 
STATE OF PLAY IN MEXICO
Who wouldn’t believe the enormous growth potential that exists in the Mexican gaming industry? Maybe the greatest in the whole American continent; but when asked about the potential for investment in that region, however much we would like to do otherwise, we leave Mexico to one side.

The truth is that the gaming industry is managed within the parameters of total responsibility. We are not talking about the responsibility of operators of casinos, gaming halls, lotteries, racetracks or online gaming, we are talking about our responsibility – that of marketing companies, the media, gaming event organizers, etc., those who form part of the support agencies of this industry that feeds us.

I have visited Mexico at times over the last eight years with a view to finding the ideal way for operating gaming there, and I’ve visited Monterrey since the start because in this vibrant city, function slot machine venues where winnings are awarded with tokens to be exchanged for prizes at businesses ‘around the corner.’

If those businesses that pay the prizes are connected to the slots venues that give them, then they are not relevant to this argument. Suffice it to say that the form permitted by the local authorities in Monterrey is not strictly legal under the established federal Gaming and Lottery Law 1947.

When lawyers in Mexico present the ‘way’ to open slot machine businesses in Monterrey and other Mexican cities by using judicial rulings, we prefer to remain the other side of the Rio Grande together with our investment until there is proper legislation. It is easy to imagine risking a few million of one’s private funds, but in the gaming industry taking a risk on a venture is not what operators or investors do. We leave the gambling to other people.

The difference between investors with operations outside the regulations added to the 1947 law, approved on 17 September 2004, proposed by ex-Secretary of State and now Senator Santiago Creel, and those that operate within the scope and with licences as established by the law, is found in the risk factors of the investment. The former risk their investment in ventures that are not fully compliant with the law.

Those who invest in gaming without the authorization granted by the Secretary of State find themselves in a grey area legally, with questionable judicial rulings and municipal permits. In one way or another, these businesses function with the backing of the judiciary but without permission from the Mexican regulatory body with the licensing powers. To operate at the periphery of the law creates questions about security management, both corporate and physical, for the benefit of the betting public.

The businesses may make millions, but this is not to say that everything is rosy. The attempted assassination of the owner of one of the biggest slot machine operations in Mexico last month demonstrates that where the regulations or law are not clear, the law of the jungle reigns. In June armed gangs assaulted various locations in Monterrey and other cities, leaving one young customer dead. In these situations of legal insecurity, the principal element of gaming – security – cannot be run efficiently.

As responsible professionals it is not possible to say that great opportunities can be found for gaming investment in Mexico. Having spent dozens of years in the gaming industry, in both operations and in supporting agencies, it is clear that the subject takes study and the application of knowledge in a measured and responsible way. This is what operators do, and those in the gaming support industry should do the same.


SAGSE WORLD A HIT AT LAS VEGAS G2E
Monografie S.A., the organizer of Argentina’s SAGSE show has announced that the exclusive and must-have SAGSE WORLD tabloid is having its second world tour stop in London, where it will be delivered at the three Clarion shows: ICE, ICEi and ATEI on January 22 to 24 2008. Monografie, with 20 years experience in the industry, is also organizing SAGSE Gaming & Amusement Panama, in Central America on June 12-13 next year, and has become one of the most dynamic and creative companies in the world as a gaming show organizer, making the Buenos Aires show the third largest after Las Vegas and London.

In Latin America we are fairly used to the marketing innovations from Giorgio Gennari, president of Monografie. Up to now Gennari’s exploits have been confined to the mostly Spanish speaking region, with masterly touches that separate the leaders from the rest. In Las Vegas during this month’s G2E, the industry as a whole had the privilege of enjoying SAGSE WORLD.

The one shot edition of SAGSE WORLD, the full-colour tabloid reporting on this year’s event in Buenos Aires, was distributed to thousands of visitors at the Las Vegas expo, where Giorgio and Alan Burak, SAGSE Show Manager, ensured that all the industry leaders and most gaming professionals took delivery of this unique document published about a gaming exhibition.

For those who did not have the opportunity to visit SAGSE 2007 or those who were not able to go to G2E2007, SAGSE WORLD is a very special source of information that details the importance of the SAGSE event and the magnitude of the Latin American gaming market. This state-of-the-art document, which has all the Latin American expo data available, has motivated many companies to take part in the SAGSE Buenos Aires 2008 on October 15th, 16th and 17th.


SUN INTERNATIONAL GETS APPROVAL FOR CHILE CASINO
The Gaming Commission in Chile announced in the first week of December that private and public shareholders with more than 5% of stock in Sun International Limited had approved the preliminary licensing test for casino operations in the South American country.

Sun International and Austrian slots manufacturer Novomatic A. G., have set up local company NovoSun S.A. with equal shareholding. NovoSun aims to form part of San Francisco Investment S.A., a subsidiary of French group International Group of Gaming and Resorts S.A. (IGGR), which has been authorized to build a casino complex in Mostazal, 50 miles south of Chile’s capital city Santiago. NovoSun is set to acquire 80% of SFI.

Sun International is the principal casino operator in South Africa, where it owns and runs 24 hotel casino properties, plus one other property in Egypt. Formed in 1984, Sun International trades on the Johannesburg Stock Exchange, with a share value at September 2 this year of more than US $2.6 billion.


BOLDT TARGETS BRAZILIAN MARKET FROM PARAGUAY
Argentine operators Boldt, which is the major shareholder of Buenos Aires Casino Tigre has joined forces with Paraguay operators American Gaming and fellow Argentine Worest from Corrientes province to build a casino in Salto del Guaira in Paraguay’s North Western region on the Brazil frontier.

The investment, which has to be approved by the Paraguay government, targets the huge Brazilian market, where gambling is not licensed.  All three companies associated in the new venture are casino operators, with several properties in Argentina and Paraguay.

According to local media Ambito Financiero, Boldt said that the intention is to follow on proven marketing of Brazilians like Casino Iguazu on the Paraguay-Argentina and Brazil border and Conrad Casino in Uruguay’s Punta del Este, running junkets from profitable Brazilian cities.

In association with Spanish Grupo Peralada, the largest operator in Catalunya region, Boldt opened the first casino hotel in the city of Melincué in Argentine’s Santa Fe province, earlier in the year.

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