News INTERNATIONAL UPDATE
San Remo Council fails to grasp basic economics, raising taxes as revenue and visitation falls
With revenues and taxation falling in the Italian casino sector, the Municipal Council of San Remo has moved to increase the amount of tax it takes from the casino’s revenues from a staggering 66 per cent to 81 per cent, forcing the casino into a ‘do a or die’ situation.
The increase has been widely slammed by executives at the casino who say overtaxing the casino will see even less money brought to the spa town in the form of tax. Instead, they say, the casino needs investment. Gianni Berrino, administrator for the commune of San Remo, said the increase was absolutely necessary. “With expected annual revenue of €55.2m in 2012, excluding online gaming, the economic equilibrium of our society will only be maintained by increasing the percentage of proceeds brought by the casino spa to between 81 and 90 per cent. The business plan of the casino will need to be readjusted to force it to perform properly.”
Massimo Donzella, an advisor for the casino, questioned how the casino was supposed to survive. “This decision will force a shortcoming in the accounts that the casino will present in court,” he said. “Instead we should be looking at the
Torrevieja moves to shopping centre
The licence for Spain’s Casino Mediterráneo of Torrevieja is to be transferred to a new development in the planned Zenia Boulevard Commercial Centre located on the Orihuela Coast. The opening of a shopping centre, which the casino’s owners say will provide it with a better specification of facilities, is scheduled for October. The president of the casino, Jesús Álamo, said the property would allow the casino to exploit niches in leisure and entertainment and attract new customers onto the gaming floor. The group’s investment will be around €3m with a 750 sq. m. casino housed in a total area of 1,200 sq. m. The plan is for the casino to open in its new venue in December. The total investment in the Commercial Center, with 150 shops and 5,000 parking spaces, will reach €185m with the venue employing 5,000 people.
July 2011 PAGE 26 Death sentence
“The decision taken to raise the tax will force the casino to take shelter from
the economic storm rather than address the downturn in trade and do
anything to change it. The municipality needs a mayor making forward-
thinking decisions to help the unions and employees at
the casino, with the goal of generating more income and more taxation in
three to five years’ time.”
MASSIMO DONEZELLA.
responsibility of the commune and the lack of investment that there has been in the casino in recent years.”
In May 2012 the Casino of Venice generated revenues of €10.5m, up from €7m. Saint Vincent brought in €5.9m whilst the casino in San Remo brought in GGR of €3.6m. “As of June 6 we’re at least 22 or 23 per cent down compared to last year,” said Mr. Donzella. “Years ago the casinos in Venice and Campione were at the bottom of the league table when it came to profitability, while Saint Vincent was in top place. However, executives in Venice and Campione made important decisions in terms of investments. Venice has created a fantastic new American style casino near the airport, whilst Campione built a new casino. The casinos in Saint Vincent and San Remo have gone backwards. In our casino, we have paid €50m to the municipality in taxes which in turn has paid for nothing to be done.”
Partouche set to retain Val André location in Breton
Its licence to operate the Val- André casino may have expired but as the only group interested in taking on the 69 slot, five table venue, Partouche has retained the operating rights. Located in the Breton town of Pléneuf Val André on the north coast of Brittany, Casino du Val André has struggled from a downturn in play causing a fall in profits. With this in mind the local commune has agreed to revise the level the business is taxed, agreeing to reduce the levels from 13 per cent of GGR to 10 per cent. Partouche had asked the tax level to come down to seven per cent.
Jean-Yves Lebas, the Mayor and President of the public service delegation in charge of redistributing the licence, said: “Even with just one candidate
involved, the files for this approval have been heavy and complex. These negotiations have come at the worst time for us. On a national scale casinos are experiencing a fall in their income. From a local perspective the building is now owned by the commune, meaning we are responsible for any work to the exterior of the building whilst Partouche is responsible for the interior. The casino is a very important tool for the commune, employing 60 staff and giving the town a certain standing, especially in theatre season.”
Some politicians have argued that with Partouche negotiating a new tax level, the whole tender process should be launched again with the new levels included in the proposal.
INTERBLOCK HAS COMPLETED ITS FIRST G4 Organic product installation in Talcahuano, a port city in the southern part of Chile's central zone. The start of June saw Interblock complete the install of its G4 Organic Roulette designed in a Football Shape with 10 player stations in Casino del Sol, marking its entry into the Chilean gaming market. Michael Ecclefield, Director at Koala Gaming, said: “Interblock’s Organic Roulette in the eye-catching football shape is one of the most sophisticated products to have entered the Chile market in recent times. We believe that Interblock’s products will bloom in Chile and in other S. American markets.”
Miha Miklavcic, Sales Director for Europe at Interblock, added: “Everything about this project went absolutely smoothly right from the beginning. We’re delighted to introduce our G4 Organic generation to the South American market providing us with the opportunity to prove to the gaming industry that we are on top of the game.”
Gonzalo Téllez, Director at Koala Gaming, explained: “Working with the Interblock team during the Marina del Sol project was a wonderful experience and the fact that the machine has been permanently fully occupied by players as soon as it went live on the floor is a result of its functionality, reliability and user friendly features.” Mr. Miklavcic added: “The Interblock team is looking forward to more cooperation with South American distributor, Koala Gaming, and believes that many more casinos in Chile and South America will decide to upgrade their venues after visiting Casino del Sol.”
UK-BASED BANK NOTE validator manufacturer, Innovative Technology, has announced the appointment of Tony Morrison as Sales Director, Retail & Kiosk.
Well known in the Industry, Tony brings with him 20 years of experience in the cash handling sector. Based at the Derker Street Head Office, Tony will head up ITL’s Retail & Kiosk Sales Division as the company expands in these two growth sectors. On his decision to join Innovative Technology Tony commented, “With a market leading product portfolio and a design team to rival many larger organisations, ITL is set to grow into a global leader in innovative payment solutions. I am very fortunate to have been invited to play a key role in making this happen.”
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