Casino Enterprise Management

Chile

Casino Revenue Increases 44% in 2010, Despite Earthquake 

The casino sector in Chile reported record earnings in 2010, despite the devastating earthquake that struck in February of that year. According to the most recent statistics released by the Chilean Gaming Control Board (SCJ), although eight of the 15 new casinos had to temporarily close their doors to the public, the casinos received a total of 4.76 million visitors in 2010 (10.63 percent more than the previous year). Meanwhile, gross income increased by 44 percent compared to the previous year, from $219.81 million in 2009 to $317.34 million in 2010.

The Chilean Gaming Control Board has also granted two casinos more time to complete building work. The Casino Gran Ovalle, located in the capital of Limari Province, has been granted an additional year to complete work on its casino and an additional 18 months to finalize the building of other facilities. The SCJ also granted the Casino Coyhaique, located in the capital of the Aysén region, a year to complete building of its casino and 16 months to complete additional building work.

The extensions were granted by executive decree passed after Chile was hit by an earthquake in the early hours of Feb. 27, 2010. The decree granted those casinos that were under construction at the time of the quake more time to complete the building of casinos and other facilities.

Ecuador

Proliferation of Illegal Gaming Could be the Result of Casino Ban  

As reported last month, the president of Ecuador, Rafael Correa, has announced his intention to ban casinos and all types of gambling in the country (apart from the national lottery). The Ecuadorian people could have their say over the issue in a referendum that seeks to address two issues simultaneously: the continuation of bull fighting, which Correa is also opposed to, and gaming.

Members of the Ecuadorian Bingo and Casino Association have come out strongly in opposition to Correa’s proposals, arguing that should it be approved, it will lead to a wide proliferation of illegal gambling nationwide.

At a press conference held in January, Vice President of the Association Luis Castro told the press: “To forbid gaming means creating more difficulty for the country ... The moment that gambling is banned, the next day or the day after that we will see illegal gambling within every administrative district and province in the country, which will lead to great insecurity and a scourge that will be very difficult to combat.”   

So far Correa has shown no signs of backtracking on his plans to make gambling illegal. In his latest statements on the issue at the end of January, Correa reiterated his belief that gambling should be made illegal, arguing that “There is a serious problem with money laundering in casinos.” However, the issue looks as if it will still be left up to the Ecuadorian people, and the referendum could be carried out early this year.

Uruguay

Strike Action Could Hit Casinos in Uruguay as Casinos See Record Profits

According to an article published in local daily El País, during the first 15 days of January, bets made in the popular beach resort of Punta del Este added up to $8.7 million a day. Of this amount, 20 percent was received by the three casinos and slot parlors operating under the mixed system (where both the state and private enterprise run a casino in partnership). Casinos operating under the mixed system in Punta del Este are the Hotel Nogaro casino, the Mantra de La Barra casino and the slot machine parlor located in the Punta shopping center. The remaining amount was deposited at the privately run Conrad casino.

State casino workers in Uruguay are, however, threatening to go on a 24-hour strike during the peak tourist season, which could mean that the three casinos operating under the mixed system would have to close temporarily. Workers are protesting over the way gaming profits are distributed amongst workers an action, which is not supported by other union workers in Uruguay. Estimates place the potential losses of the strike action between $300,000 and $1 million.

Despite this, current estimates point to a record year for the casino industry in Punta del Este. Compared to last year’s summer season, bets made in the casinos have increased by 8 percent in the popular summer resort. Around 13,000 people visited the casinos per day during the peak summer season and tourist numbers are on the increase nationwide, breaking government forecasts. According to the most recent figures released by the Ministry for Tourism, during the first 12 days of January, 143,000 tourists visited Uruguay—a 30.3 percent increase compared to the same period the previous year. 

The record revenue now being generated by the casinos in Uruguay has also led to a renewed push to place more state-run casinos under private control under the mixed system. The measure, which was drafted by the Ministry of the Economy and Ministry of Tourism together, now has the backing of President José Mujica. The new measure lays down the specifications whereby bidding would be permitted for running casinos under the mixed system in the coastal resort of La Barra, which is another very popular beach resort.

The same measure also opens up the way for bidding for a large scale five-star hotel and casino in the Maldonado Department, located to the southeast of Uruguay. The Maldonado Department encompasses both La Barra and Punta del Este, as well as other beach resorts in Uruguay.  

Argentina

Women 70% of Casino Clients in Coastal Casinos as Tourist Numbers Rise

As the summer tourist season is now in full swing in Argentina, a recent survey has found that 70 percent of clients to the casinos dotted along the coast are women. This is according to statements made by Raúl Palestrini, head of the Instituto Provincial de Lotería y Casinos de la Provincia (the Provincial Lottery and Casino Institute). According to the same report published in local daily Clarin, female customers prefer to play during the morning hours, when nine out of 10 slot machines are occupied by female players. 

In the holiday resort of Mar del Plata, where there are 700 slot machines—out of a total of 1,630 in casinos dotted along the Atlantic coast—this year has seen record numbers of tourists. A total of 657,132 tourists arrived in the city of Mar del Plata during the first 15 days of January, a 0.8 percent increase compared to the previous year. Meanwhile, during the same period, almost 520,000 tourists visited resorts located in other coastal towns such as San Bernardo and Mar de Ajó, which come under  the  coastal administrative division of  Partido de la Costa, experiencing an increase of 5.5 percent compared to last year.

As tourist infrastructure continues to improve in Argentina, the tourist industry is growing at record levels with more and more Argentines choosing to holiday at home. More than 4.6 million Argentines chose to holiday in their own country during the first 15 days of January, an 8 percent increase compared to 2010—a growing trend that is likely to prove beneficial in the long run to the Argentine gaming sector.

James Marrison has been covering the casino industry in Latin America for over seven years and has written in-depth features on every country in the region. Marrison has worked as a research contributor for Global Betting and Gaming Consultants and serves as a consultant for industry professionals for the Gerson Lehrman Group. Marrison is also a researcher into the online gaming markets in Europe.