Casino Enterprise Management

Spain  
Euro Vegas in the Cards
American casino and hotel magnate Sheldon Adelson has announced plans to build a Euro Vegas in Spain. In a move that was described by the regional leader of Madrid Esperanza Aguirre as “a ray of light in these times of darkness,” it is estimated the project could create at least 200,000 permanent jobs and initiate a 10-year building boom either in Madrid or in the nearby city of Alcorcón. Worth an estimated $18 billion, under current plans, the resort would first consist of a casino and then gradually expand to encompass 12 large-scale hotels with a total of 36,000 rooms and six casinos. Combined, they would house more than 1,000 gaming tables and 18,000 slot machines. The project would also consist of theaters, cinemas, conference centers, three golf courses and a 15,000-capacity stadium.

Local leaders are now negotiating how to meet the necessary legal challenges in order to create an area where the casinos would be permitted, and they are also working to meet with stipulations being put forward by the company, which revolve mainly around local labor laws and taxation. Mayor of Madrid Ana Botella and the president of the regional government, Esperanza Aguirre, met in January to discuss some of the preliminary details that would convert the region into Europe’s largest gaming and conference centers. In statements reported by local newspaper, El Pais, Aguirre stated that as long as it was in “accordance with our principles,” the government would do everything to make sure that everything is in place so that the project is underway “as soon as possible.”

Denmark   
Bwin.Party Launch Games for Danske Spil
As previously reported, the Danish government passed a wide-sweeping new gambling act in June 2010. In September, the European Commission finally gave the new act its approval. The new act ends the state monopoly of the market and means that operators can now be licensed to legally operate in the Danish market for betting and online casino game services. Previously, the state-owned organization that had the exclusive right to run gaming in Denmark was called Danske Spil (“Danish Play”).

Since 1949, Danske Spil has been the official authority in charge of all the country’s gambling businesses. More than half a million customers are registered on its online gaming website, and with an annual turnover in excess of $2 billion, it is one of the largest betting organizations in Europe.

In January, bwin.party announced that it had launched online poker and casino games in Denmark for Licens Spil (DLS), a wholly owned subsidiary of Danske Spil. Jim Ryan and Norbert Teufelberger, co-chief executive officers of bwin.party, hailed the move as another important milestone “in the execution of our stated strategy that is focused on securing leadership positions in regulated and to-be-regulated markets.” They also expressed their satisfaction that DLS had “recognized our expertise and high standards of business practice.” Meanwhile, according to Jens Aalose, CEO at DLS, together both companies “will deliver a highly attractive customer experience to players in Denmark.”

The move puts the company in an enviable position in the potentially very lucrative Danish market. Although there are only six casinos in Denmark and the state retains the right to run lottery-type games, poker is a very popular pastime for Danes, with an estimated 200,000 to 300,000 Danes playing poker at least once a week. More than half a million Danes play poker on a regular basis.

Portugal 
Court Rules Against Sports Sponsorship
A Portuguese court has ruled that the sponsorship of sports by online gambling companies is illegal. The court, based in Oporto, Portugal’s second largest city, ruled against an appeal made last September by online gaming giant bwin.party. The new ruling means that the Portuguese football league could lose as much as €3.8 million in advertising revenue per year and seriously affect clubs that are sponsored by online gambling companies such as Betclic and Betfair.

In Portugal, the government retains the monopoly to run a limited number of sports betting games and runs online sports betting via the National Lottery, known as the Santa Casa de Misericordia de Lisboa (SCML). The SCML has the monopoly to offer betting in Portugal, including online sports betting. But offshore gambling companies have, until now, advertised their services via sporting events and clubs.

The complaint was first made by the Portuguese Association of Casinos, who claimed that offshore gambling companies have an unfair advantage over their competitors, as they do not pay tax or licensing fees and are therefore operating illegally. After the decision was announced, the Portuguese football league was obliged to almost immediately remove all bwin advertising. However, a spokesman for the league claimed, in a statement, that they would appeal the decision as it posed a threat to the game.

At the same time, a spokesman for bwin said that all sponsorship and advertising of its products via the football league would cease. However, the company criticized the decision as the ruling goes against European Union rules on the free flow of services across member nations.

According to statements made by bwin’s lawyer, Eduardo Serra Jorge: “It is time for the state to legislate and tax online gambling instead of banning it. Regulating it is in the interest of the consumer, the economy and the state budget.”

Italy    
Betfair Welcomes Latest Ruling as Italy Liberalizes Market
In a decision that has been greeted positively by the online industry, the Italian government continues to open up the market to offshore betting companies. In the past, Italy has been fiercely protective of sports betting, over which two local sporting organizations had the monopoly. In a controversial move in 2006, the government even sought to ban offshore companies that were offering their services to Italians. The move made all Italian Internet service providers obligated by law to block access to foreign gambling websites, and was criticized fiercely by industry insiders.

However, in 2010, the government began to draft legislation that would liberalize the online gambling industry, which recorded an estimated €4.8 billion in revenue in 2010. According to the new act, online gambling companies now have to pay an annual fee of €50,000 for the first six months of their license and 2.5 percent of NGR for the second six months. 

In its latest ruling on gaming, in January the government announced that it had notified the European Commission of a ministerial decree that would allow for betting exchanges in Italy. This news was welcomed by Betfair. According to Martin Cruddace, Betfair’s chief legal and regulatory affairs officer: “This decree signifies the positive ongoing development of online gambling regulation in Italy, and demonstrates that the Italian authorities have full confidence that the introduction of betting exchanges will be a good move for both consumers and the betting market in general. We look forward to working with the authorities in Italy to offer consumers greater choice and better value.”


James Marrison has been covering the casino industry in Latin America for more than 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.