Dateline…Europe
Irish casinos considered
The government of Ireland seems prepared finally to bring definition to the vague world in which casinos there have operated for so long. The answer to the overriding question is now closer to “when” than “if” in one of the few remaining countries in Europe without a legislated casino industry.
Justice Minister Brian Lenihan gets the credit for setting into motion the creation of draft legislation for casinos. Like his predecessor, Michael McDowell, Lenihan appears to have made an about- face from an earlier position which favored the banning of casinos outright. Currently there are close to 20 casinos operating as private clubs, some with memberships that run into the tens of thousands.
The slow march to regulation began with a cabinet discussion in July 2006 on whether to close down 18 casinos operating in Dublin. The meeting resulted in the creation of a casino committee to study the matter thoroughly. The committee has issued its report, but details have not yet been made public.
There is talk of the coming draft legislation containing a mandatory fingerprint recognition provision for guests wishing to enter a casino. One industry veteran thinks such drastic ID requirements are overkill.
“It’s nonsense,” said J.J. Woods, director of operations at Atlantic Casino Consultants, in Dublin. A 26-year veteran of casino operations outside of his native Ireland, Woods contributed a report on casino legislation which was discussed with various bodies of government at a special conference at the Clarence Hotel in Dublin in October 2006.
The anticipated legislation will contain recommendations from the casino committee’s report. Among the expected provisions is the creation of a gaming commission, licensing regime and tax structure. It is also expected that some of the
private-membership casinos will not be able to continue under the new legislation, and that Horse Racing Ireland will be allowed to apply for casino licenses.
Lenihan’s department will prepare the draft legislation with the intent of being ready to present the resulting bill to the Dail, which is the lower house of parliament, for debate in April.
Next year in Eilat
Israel Tourism Ministry officials have arranged with the country’s Land Administration to set aside 12 acres of land on the northern shore of Eilat for Israel’s first legal casino, according to a Ynet report.
Tourism Minister Yitzhak Aharonovitch said, “A casino in Eilat is one of our main objectives for 2008 and its success will lead to the establishment of additional casinos throughout the country. As a former law enforcement official, I can tell those who oppose the idea that a casino would downsize the extent of the illegal gambling operations in Israel as well as the related criminal activities.” Aharonovitch said there are hundreds of illegal gambling facilities in Israel.
Following Eilat, on the Red Sea, casinos would be introduced at Mitzpe Ramon, at the Dead Sea, and in northern Israel.
However, getting the public to accept casinos remains an uphill battle. The biggest support comes from secular Israelis, with 47 percent in favor. The powerful religious blocks oppose casinos, with around 80 percent rejecting them.
Aharonovitch would like to see progress on the issue within the next few months.
But as Sheldon Adelson told an Israeli reporter recently, when asked if he would be opening a casino in Israel: “After 18 years of trying, I’ve given up.”
Harrah’s in the hunt for Rank
Harrah’s Entertainment is taking another look at gaming opportunities in Europe. Not ruled out is a new offer for troubled U.K. gaming operator Rank.
In November, the Las Vegas- based casino giant sought to trade its London Clubs properties for a 28 percent stake in Rank. Harrah’s obtained London Clubs for £279 million in autumn of 2006; Rank is currently valued at £350 million.
The offer was rejected, but since then, pieces of Rank have been targeted-with varying degrees of success-by several suitors. Genting International has acquired 10 percent of Rank shares and Richardson Capital almost an equal amount. Duke Street Capital tried but failed to get hold of Rank’s bingo operations.
A report in the Daily Telegraph said that Harrah’s had picked Morgan Stanley and Deutsche Bank to examine possibilities in Europe.
Casinos Poland on the market
Polish-language news source Puls Biznesu reports that two of the three owning entities of Casinos Poland are looking to sell their stakes in the local casino company.
Polish airline company LOT and airport authority PPL each own 33.3 percent of the casino operator. The remaining third is owned by Colorado-based Century Casinos.
Casinos Poland comprises seven casinos and one slot arcade. Casinos are located in Warsaw at the Hyatt and Marriott hotels, Cracow at Novotel Bronowice, Poznan at the Polonez, Wroclaw at the HP Park Plaza, Gdynia inside the Theatre of Music building, and Katowice inside the Altus building. The lone slot arcade is in Szczecin.
One interested party according to the report is national lottery operator Totalizator Sportowy.
Casinos Poland has about 50 percent of the national casino market. The report put the value of the company at between 90 million zloty and 105 million zloty, or US$36.8 million to $42.9 million.
