Focus


AFRICA: EGYPT


number of tourists between 2009 and 2010 has risen by 12.6 per cent although there has been a significant drop in Algerian tourists attributed to the crisis which erupted between the two countries during the World Cup. Russian tourists have increased however by 57 per cent and Latin American by 32 per cent and North Americans by 13 per cent.


Egypt is of course famous for its ancient civilisation from the Old Kingdom era and the world’s most famous monuments such as the pyramids, Great Sphinx and the ancient ruins of Memphis, Thebes and Valleys of the Kings. Europeans make up the largest group of tourists with almost nine million visiting the country last year compared to two million Arabs, and the rest from America and other countries.


THEGAMINGMARKET Egypt has a huge history in gambling and apart from building a magnificent civilisation they were also pioneers in the leisure and recreation industry. Board games were a popular theme and the game of Senet is an ancient Egyptian board game which at the time was played mainly by wealthy adults. The Ouija board also originated in Egypt and it is not hard to find gambling machines which have themes based on ancient Egypt.


Today it is one of the few Muslim Arab nations which ‘accepts’ the gambling industry within its country and casinos are mainly perceived as a means of attracting affluent tourists and generating income.


However gambling is still viewed as a negative concept by the Muslim religion and as such casinos are often seen as a ‘bad influence’ and cannot be promoted or advertised via the media to the Muslim audience. The casinos are located in the deluxe style international hotel chains and in major tourist destinations whilst the clientele are mainly European and American expatriates and Saudi and Kuwaiti tourists.


The law has fluctuated throughout the years, which has at times, left the country without legalised gambling. Today however it is governed by several laws:


The Principles of Works Systems issued by the Ministry of Tourism; supervision procedures for Combat of Money Laundering and Financing Terrorism and Licence Agreement with hotel owning company.


The law states: • Egyptian citizens are prohibited from entering the casinos.


• Only foreigners over the ages of 18 years are permitted excluding those in possession of a resident’s visa for more than five consecutive years.


• Politicians are also banned from gambling or entering casinos although casinos do permit players with dual passports.


• Casino Management can accept any currency but only those currencies acceptable by the Central Bank of Egypt


• The chief cashier must prepare a win/loss certificate with player details.


• The casino should keep a daily inventory report of opening and closing balances


• Each gaming table should have two drop boxes for currency and tips.


• A casino should provide US$2m deposit.


Although this law basically governs the industry as a whole the casino sector in Egypt is operated very loosely and is more or less a ‘free for all’ market. To open a casino operators merely apply for a tax licence from the Ministry of Tourism.


From this they must then pay 50 per cent taxes on net takings each day on all aspects of the operations from slot and table takings to food and beverage. In each legal casino a government representative (‘The Bank’), calculates the daily takings and then removes 50 per cent.


However in Egypt it is not uncommon to hear of some levels of corruption and a ‘leakage’ between ‘The Bank’ and the government coffers meaning the total 50 per cent does not always reach its destination, whilst some casinos are also hassled for a ‘baksheesh’ (a pay-off) for various aspects of their operations.


The law can be misinterpreted and adapted by both operators and the government alike and therefore can be used to cause problems and illicit bribes from the country’s main ‘cash cow’. The lack of any regulatory committee also means some casinos operate tables and slots at higher than normal house advantages and some players are reluctant to enter legitimate casinos.


It is hard to provide a true number of licensed casinos currently open in Egypt although it is estimated that there are currently between 30 and 40.


G3 I JANUARY2011 I PAGE 28


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