REVIEW OF CASINO ACTIVITY AROUND THE WORLD IN 2006
by Stephen Hand, Executive Editor, World Casino Directory
(An edited version of which appeared in InterGaming, March 2003 Issue)
|
A proposal to allow casinos in Mexico was not passed, as many had expected, in mid December. However The bill passed by the committee this week, (which has ruled out casinos) must still be ratified by the full session of the Lower House and the Senate before becoming law, and could be amended to again include legalized casino gambling.
The Governments of Costa Rica and El Salvador have assured that it will not be a happy and prosperous New Year for their countries respective casino industries. Many casinos contacted in Costa Rica have already begun removing most if not all their slot machines after learning the tax on each machine will rise from less than $50 per quarter to $266 per month. Other casinos have announced that they have no option to close with the new tax on table games rising from $139 per month to over $800 per table. The coming year will be another one of uncertainty in El Salvador as the countries Casinos have just been to the Supreme Court to obtain a writ to stop the Government closing all casinos. Lawyers for the casinos believe the case could take years to resolve.
Suriname will see its rapid casino industry expansion continue, with 3 more openings planned this year. Suriname had one casino in 1997 and will now have 14 by the end of the year.
Two major Las Vegas-based casino operators, MGM Mirage and Mandalay Resort Group, sparked a sell-off of gambling stocks after only one week of the New Year when they warned of a profit shortfall due to surprisingly slow New Year's holiday business. Some analysts have cut their expectations for the year by 30%. Many gaming companies with shares on the stock market are hoping their beleaguered shares will stage a recovery after the Bush administration's proposal to eliminate federal taxes on dividends. Most gaming companies do not pay dividends but may now do so to attract a different kind of investor. News of the latest poor business in Nevada is not good news for the investors in the regions next three projects, the $100 million Cannery Casino Hotel became this year's first new casino when it opened in North Las Vegas on the second day of the year. The $100 million Tuscany hotel will open a 60,000-square-foot casino and Casino MonteLago, which will be connected to the Ritz Carlton, should open in the spring. During the year the project to build the worlds largest casino, 500,000-square-foot, at the Moon Resort and Casino should gather pace.
Atlantic City Casinos also ended the year poorly with December's revenues down nearly 10%. Although Atlantic City starts the year with only 11 casinos after Bally's merged with the Claridge, the billion-dollar Borgata Hotel, Casino & Spa will open in the summer.
Even though he does not believed it will survive a challenge Gov. John G. Rowland signed legislation January 6th that blocks the expansion of Indian gambling in the state by repealing a law that permitted churches and civic groups to raise money with casino-type games. Connecticut already has two of the world's largest casinos -- Foxwoods Resort Casino, operated by the Mashantucket Pequot tribe, and the Mohegan Sun, run by the Mohegans.
Isle of Capri Casino at Black Hawk L.L.C. should complete the acquisition of International Game Technologies Colorado casino operations during the spring of 2003. IGT's operations consists of the Colorado Central Station Casino, located in Black Hawk, Colorado, and the Colorado Grande Casino, located in Cripple Creek, Colorado.
Chicago Mayor Richard Daley has changed his mind about allowing a casino in the city and the city may get its first and Illinois casinos may get their 10th Casino.
In Indiana increasingly powerful Gambling lobbyists are pushing for five new casinos in Indiana, including two in Indianapolis.
Casino gambling will be considered in the following states during this year; Maine Casinos, Massachusetts casinos, Idaho Casinos, Florida casinos, Maryland casinos, Rhode Island casinos, Texas casinos, Kentucky casinos and Pennsylvania casinos.
San Diego's Barona Valley Ranch Resort & Casino opened on New Years day and also in California the Thunder Valley Casino is planned to be an approximately 200,000 square-foot facility opening in the summer. 50 tribes now operate casinos and there are about 48,000 slot machines fueling the estimated $5 billion a year industry. The new Spa Resort Casino, located in the heart of Palm Springs, is scheduled to open in November. Also in California the Chukchansi Gold Resort & Casino is due to open in June.
In New York casinos have seen the opening of The Seneca Niagara Casino which opened on the last day of 2002.
Arizona casinos now allows Nevada-style blackjack at Indian casinos.
Manitoba expects more casinos in 2003, only one of 5 proposed Indian casinos has so far opened. A $75 million casino will be built at Mont-Tremblant ski resort north of Montreal.
A merger between Queensland rivals UniTab and Jupiters is very possible in 2003, it would create the second largest gaming company in Australia with a market value of around US$ 1 billion. With no new casinos on the horizon in their own country Australia?s leading gaming companies are believed to be eyeing the about to be de-regulated U.K. market. Watch out for Publishing &Broadcasting Ltd. and Tabcorp trying to gain entry.
Casino gaming could come to Thailand sooner than some people expect. With all major figures in the Government pro casino it was announced this week by the Deputy Finance Minister Warathep Rattanakorn that the government would be able to conclude the proposed opening of casinos in Thailand before the end of its term. Prime Minister Taksin has previously stated he supports casinos if the public is in favour and a recent opinion poll with 38,976 questionnaires completed found 75.8% favoured casinos.
In Japan Tokyo Gov. Shintaro Ishihara is supported by twelve other regional Governors to bring legalised casinos to Japan and special casino days have been very well supported. Tokyo expects that tax revenues from casinos would be double the cities $80.65 million fiscal deficit for 2001. Should Japan legalise casinos it would probably affect South Korea the most. South Koreas gaming revenues doubled in the last two years but it is estimated that 70% of the players are Japanese.
Discussions about legalsing casinos in Singapore are also expected to continue in 2003.
Ho Wah Genting Bhd will open its casino in Cambodia?s Poipet in the coming months.
In the Philippines the state-run Philippine Amusement and Gaming Corp. (Pagcor) is waiting for Congress to extend its franchise that is expected to expire soon so it can pursue other major projects including a P18 Billion one in Manila Bay.
Malaysian Casino giant Genting will have a change of CEO this year after .LimGoh Tong stepped down after 34 years. Premier Yu Shyi-kun of Taiwan in November held up a controversial proposal for lifting the ban on casinos on the country's offshore counties, the premier asked the Ministry of the Interior to consult various sections of society on the issue and come up with a comprehensive proposal. Taiwan will now conduct a public survey in the next month to see whether its citizens would like casino gambling in the Country.
Governor of the Indian State of Haryana Babu Parmanand is reluctant to approve a bill to allow of casinos in the state. It was expected that Haryana would be the first Indian State to legalise casinos in the world?s second most populous country. The state government is ready to get the bill passed yet again, which will make it mandatory for the governor to approve it.
In Switzerland the remainder of the countries class A and class B casinos will open. The last three of the A class casinos will open in Basle (autumn), Vaud and St. Gall ( both in February). Class B casinos are scheduled to open in Freiburg (Spring), and Tessin (Autumn).
In France the Toulouse town council has approved a new casino. French casino groups Moliflor and Partouche continued to acquire casinos in 2002 and expect more of the same this year.
Casinos in Eastern Europe who cater to Israeli junkets are worried that this years new tax for Israelis, on gambling earnings overseas, may adversely affect their business. Israelis owning some of these casinos are also subject to the new taxes.
In the United Kingdom both Domestic and International gaming companies are eagerly awaiting the passage into law of recommendations made in the "Budd" report of 2002. Las Vegas style casinos should be legal by the end of the year. Struggling British casino operator London Clubs International are seen as a prime takeover target for Foreign investors wanting a quick foothold in the UK prior to the new legislation.
Stanley Leisure which last year acquired the Tower group and some independent operators has already made a bid for LCI and is expected to come back with a higher offer before the end of this month. US gaming giants Park Place and MGM along with Australian heavyweights Publishing &Broadcasting Ltd. and Tabcorp are expected to lead the foreign invasion, and one can never rule out Sol Kerzner who has already made the first move by buying a sizable amount of LCI debt.
Only the 5th casino in Italy, in the principality of San Marino, will be well on the way to opening.
London Clubs International may have to sell its casino Emerald Safari and Resort Casino before September as part of a promise to its bankers to repay 100 million pounds of debt by that time. A new entity which will be Tsogo Sun Holdings has been created by a deal between South African brewer SAB-Miller and Tsogo Investments. It will be Africas largest gaming group. Another big South African operator, Global Resorts, will have new owners in 2003- Subject to approval by the relevant gaming authorities, Metallon Corporation should be the new controlling shareholders. Global also own the Grand Palm Hotel Casino and Convention Resort in Gaborone, Botswana.
American Palace Limited, should begin operating the second licensed casino in Lilongwe, Malawi.
In the Bahamas the old Marriot Resort and Crystal Palace casino will start the year as the Wyndham Nassau Resort and Crystal Palace Casino, the casino ownership will not change. Elswhere in the Bahamas Freeports Our Lucaya property may finally get its casino after all. The largest resort in Grand Bahama will soon be recognized as the Westin at Our Lucaya Beach and Golf Resort and the Sheraton at Our Lucaya Beach and Golf Resort. A casino had previously been built for British casino group London Clubs International but after their disastarous foray into the Las Vegas market they had to pull out. Casinos have also been planned for the islands of Bimini, Andros, and the Exhumas.
Even though Trinidad's casino operators have to cope with a 200% shock tax increase on table games more are planned. At the time of going to press the Club de Vegas, a 30,000-square-foot operation should have opened its doors. The Malaysian company who will operate the casino have also leased more space to open a second casino.
Casinos in the Dominican Republic will not get 24 hour gaming as expected, it was decided that locals had enough places to loose their money. Another 7 projects are scheduled to open in the Dominican Republic in 2003 and they already have far more casinos than any other Caribbean Nation.
Marriott will open their St. Kitts Royal Beach Resort and 35,000-square-foot Casino on the island nation in February.
Donald Trump has been linked with properties in Trinidad, St Lucia and St. Vincent.
|
|
|
