After all the hype American entrepreneur pulls out

A ROUT IN MEXICO

The American businessman who set up slots casinos in the border towns of Matamoros and Nuevo Progreso has conceded defeat over the machinations of Mexican politics. In July James Vann opened the first Viva Las Vegas venue in Nuevo Progreso and had plans for a chain of six operations in the area. The second Viva Las Vegas was set to open last month, with another in the pipeline for Nuevo Progreso. He described dealings with the local Mexican authorities as ‘jumping through hoops’ but ‘no problem’.

Mexico has ever been a jewel in the crown for gaming industry entrepreneurs. For decades the possibility of casino licensing has seemed almost within reach, only to retreat just out of touch. The market is opening – there are numerous electronic bingo parlours known as ‘yaks’ and exactly one year ago the Corporación Interamericana de Entretenimiento (CIE), one of the world’s top ten amusement park operators, was predicting it would be operating 5,000 terminals at 45 locations by 2007.

In June 2005 Santiago Creel, one week before stepping down as Secretary of State, authorised 130 licences for betting shops and remote gambling permits – including 65 to the major television channel Televisa, which was giving air time to Creel’s campaign for the Mexican presidency. In June 2006 Televisa opened its first sportsbook premises, Play City, in Cholula and announced that ten more would be opened around the country by the end of the year. The remaining 55 licences would be utilised gradually over the next ten years, according to the company.

The legitimacy of the licences issued by Creel is still being contested through the courts. In the case of the Matamoros and Nuevo Progreso venues, the American entrepreneur says he has now sold his interest in the ventures but probably ‘ lost a bit’. The Nuevo Progreso operation closed in August apparently because of transformer problems and the scheduled opening in Matamoros was said to be delayed by electrical ones. Local Mexican officials deny knowledge of licences or projects. (E-09.29.06)

© Copyright 2006 CasinoCompendium



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