VLTs
Greece – if/when?
It still appears to be the case that the Greek government is going to legislate for VLTs and online gaming simultaneously, but whispers from the country say that ministers are confusing the two areas and progress is slow. This is despite a ¤33,000 daily fine from the EU until its industry is regulated, and the instant benefits that the sale of VLT operator licences would bring to the cash-strapped country. The market in Greece is nowhere near as
large as in Italy, as the country’s population is considerably smaller, but its existing slot market is much smaller too, so the introduction of VLTs could have a much larger impact: the bulk of the target market would be completely new players. There are around 5000 slots in Greek casinos, with a similar number estimated to be in use illegally elsewhere, so any introduction of VLTs would be an entirely new kind of offering to the Greek public. Moreover, the feeling among operators
and suppliers in Italy is that the VLT product has not taken away from the existing AWP (Comma 6a) offering, as they are appealing to a different player, and the same would probably be found in Greece. VLTs would represent new revenue for operators and the state alike.
decade ago now reduced to ¤1700. And some are racking up enormous debts; one newspaper report recently told the story of a police officer who donned a balaclava, kidnapped his neighbour’s son and, on his speedy capture, confessed to having lost everything on video poker.
www.euroslot-online.com
Made men Finally, no story about Italian business can be
complete without mentioning organised crime, and the VLT market is no exception. It is reported that mafia families in the country are benefiting hugely from the new market through back street operations, and even distribution of the machines themselves; Poto’s study suggests 41 mafia clans are involved in the business, manipulating the machines to falsely report tax revenues or bypassing the system completely. Diana De Martino, an anti-mafia prosecutor, told
Bloomberg: “The mafia is very interested in the gambling business, particularly the slot machines, which are often manually manipulated in order to
avoid taxation on the cash. Many criminal groups distribute these kinds of slot machines all around the country, so we have tax evasion, unfair competition to the detriment of honest game operators, and material damage to players as controls don’t exist.” There’s no doubting that gaming can bring much
good to communities and states in times of need, as a redistributor of wealth among other things –but Italy is finding that a commonly enjoyed amusement can also become a problem for the very community that feeds it. The rollouts of VLTs have been, from the supplier and operator point of view, swift and impressive, and consumers seem to have welcomed them. Now, tackling the social challenges may be the next task for the Italian regulator AAMS, as well as for other territories about to introduce VLTs.
Hungary – the next Italy? Italy provides
Hungary with an example to follow
Such bizarre tales, while not exactly the norm, are
becoming more common as gambling in Italy has risen from ¤4bn in wagers just ten years ago to an extraordinary ¤80bn in 2011. Taking into account winnings, that still equates to ¤304 gross gaming revenue per head per annum, more than the UK, which was at ¤232 per annum – and was formerly the biggest market in Europe until Italy’s surge to the top spot.
30 APRIL 2012
Hungary’s AWP market has taken a huge hit in recent years for a combination of reasons – largely a massive increase in taxation, and the smoking ban which came into force in January 2012. In 2004, the country had more than 33,000 machines; in 2010, this was down to just over
25,000. The machines come under two categories, I and II, which actually refer to their locations; Category I machines are in gaming halls, while Category II is for restaurants and bars, which can have a maximum of two machines per site. The amusement industry in Hungary is also creaking under the weight of a crippling tax of
¤380 per month, per machine, which is additional to existing taxes and licence costs; add a smoking ban to that and you have the death of a gaming sector. But of course, governments are unwilling to forsake the tax revenue that gambling can
bring, so it seems safe to assume the authorities in Hungary are preparing for a shinier, sexier model of gaming – VLTs. Introducing a fully networked, efficiently monitored and ripe-for- investment new VLT-led sector is the obvious step forward, and Italy provides Hungary with an example to follow.
THE INDEPENDENT VOICE OF THE AMUSEMENT AND STREET GAMING INDUSTRY
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