The ebb and flow of gaming news has continued unabated during our two week break but, despite the headlines, the industry has seen small ripples of change rather than any tsunami, even when the advancement of the UK gaming law received a setback from the House of Lords on 28 March when it voted against the 17 proposed casino locations after the Commons had voted in favour. The matter now becomes a constitutional issue over the unelected Lords’ ability to override the authority of the House of Commons, but there will be no further government action over the matter at least until after local elections on 3 May. Culture Secretary Tessa Jowell insists that plans for the 17 casinos remain very much alive.

The latest WTO ruling delivered at the end of March says that the US has failed to change its unfair legislation regarding offshore gambling websites. Antigua made a suitably optimistic statement welcoming the ruling and hoping for the unlikely prospect that the US will now open its markets. The US administration has stated it is currently reviewing its options. Antigua & Barbuda could seek sanctions that would withdraw protection for US trademarks or copyrights, allowed under WTO rules when a nation cannot afford to impose higher duties on imports.

Just a few days into April the British Casino Association obtained a High Court ruling allowing it to challenge Government plans to allow 17 new casinos, albeit delayed by the vote in the House of Lords. The BCA argues that the Gambling Act 2005 discriminates against casinos already operating by permitting more slot machines and higher prize money than at established venues. A 3-day hearing into the inequality will be scheduled before 25 May. If the challenge is successful then all casinos would have to be granted equal opportunity, which could mean all or no casinos being allowed mega jackpots.

Australia’s PBL in a joint venture with Manquarie Bank has agreed to buy nine casinos in Canada, subject to regulatory approval in British Columbia and Alberta. The US$1.2 billion purchase of Gateway Casinos Income Fund takes PBL, which recently restructured to focus on overseas expansion, into the North American gaming market for the first time. Last November Macquarie and Tattersall’s made a successful bid for amusement operator Talarius Plc. The Macquarie PBL joint venture is called New World Gaming and the Gateway transaction is expected to be completed by the third quarter of 2007.

Harrah’s Entertainment received EU approval for its buyout by two private equity groups, Apollo Management and Texas Pacific. The following day shareholders approved the US$17.1 billion deal, the largest ever to take a publicly held casino company private and the seventh biggest leveraged buyout deal of any company. The sale still requires regulatory approval in over one dozen states and tribal nations where Harrah’s operates. The EU approval came after no complaints were received from rivals and there were no antitrust problems.

A proposal to abolish the state gambling monopoly in Sweden will be put at a party conference in October. A recent survey, according to an Opposition Member of Parliament, has shown that state-owned Svenska Spel is placing jackpot machines in low income suburbs whilst support for gambling addicts is almost non-existent. New taxes, stricter marketing and gambling licensing have been called for, as has the privatization of Svenska Spel.

In yet another possible reversal for the UK government on the gambling front, it has been reported that plans to sell state-owned The Tote to a racing industry consortium have collapsed. According to the government the bid is still being considered and an announcement will be made in due course. It appears that the problem may be that the bid, worth almost US$800 million for the 540 bookmakers shops and 59 racetrack betting venues plus pool betting system, is not seen to adequately represent the racing industry as had been promised by the government.

The 2-day Andean gaming show, FADJA 2007, will be starting tomorrow in Bogotá, Colombia. The Latin American gaming market is rapidly expanding and FADJA can justifiably claim to play an important part in the promotion of gaming business in the region. CasinoCompendium will be represented at the show along with major manufacturers and service providers, and will be reporting from there. Exhibitors, who are already making the final adjustments to their stands, come from twenty-eight countries. (E-04.10.07)

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