Inside Asian Gaming

April 2008 | INSIDE ASIAN GAMING 45 Briefs frequently steal approximately $50,000 in approximately 10 minutes of play,” the indictment states. Truong admitted in the plea agreement that he and his co- conspirators won up to US$7 million from 2002 to 2007.Truong will forfeit two housesintheSanDiegoarea, two properties in Vietnam, a 2001 Porsche Carrera and a Rolex Presidential watch, federal prosecutors said. Among the casinos targeted were the Trump 29 Casino in Coachella, now known as the Spotlight 29 Casino, and the Sycuan Resort and Casino in El Cajon. The ring’s biggest win came in the early morning of October 22, 2005, at the Resorts East Chicago Hotel and Casino in Indiana.Truong and two others purchased about US$39,000 in gambling chips at a mini-baccarat table, according to the indictment. After 90 minutes and a dealer’s false shuffle, one of Truong’s associates walked out with $906,000. Truong had been free on a $500,000 bond, with orders from a judge banning him from casinos. He faces a maximum sentence of 20 years in prison. Harrah’s Ditches Slovenia Plan Harrah’s Entertainment suspended talks with Slovenia-based Hit Group about developing a US$1.2 billion resort in the Eastern European country because it was unable to reach a suitable agreement on a management contract, according to Harrah’s. Jan Jones, Harrah’s senior vice president of communications and government relations, commented: “We tried very hard, as did they [Hit Group], in trying to find a structure that gave both sides comfort under Slovenian law. We just couldn’t get there.” She agreed with a statement released by the Hit Group that said:“It was not possible to find a management structure that would fulfill the interest of the Hit Group ... and granting (Harrah’s) expected influence in the new joint company.” The casino would have been Eastern Europe’s largest, with 1,500 rooms, 2,000 slots, table games, convention and event space, clubs, bars, restaurants and a spa in western Slovenia. The partnership had been working for three years to get the country’s ownership laws changed to allow Las Vegas-based Harrah’s to take a 49% ownership stake. Slovenia’s Finance Ministry in July began looking at proposed regulatory changes, but only to allow foreign investors toget a 20%stake inbusinesses.It is also considering lowering the country’s gaming tax, which is close to 60%. “The government was doing everything it said it would do,” Ms Jones said.“Hit and Harrah’s negotiating teams looked every way we could to find a management structure that gave them comfort and gave us comfort and we just couldn’t get there.” Harrah’s also recently withdrew from a proposed US$2.6 billion resort project in the Bahamas. Harrah’s had a 43% interest in a joint venture with Baha Mar Resorts Ltd. and Starwood Hotels & Resorts Worldwide to develop a six-hotel, mixed-use resort. Although Harrah’s is no longer interested in the Bahamas project, Jones said the company could still pursue a management agreement in Slovenia.“Maybe we could do something in the future,” she said.“We just couldn’t get a management agreement at this time.” Ms Jones said the timing of the Slovenia and Bahamas withdrawals are coincidental and not cost-cutting measures related to the recent buyout by a pair of private-equity firms. Harrah’s was bought for US$17.7 billion by private-equity firms TPG Capital and Apollo Management late last year. Bid to Raise Tax Rate on Nevada Casino Revenue A Nevada state court has ruled that sponsors of a ballot initiative aimed at raising the tax rate on casino revenue in the state can begin collecting signatures to secure a spot on the November ballot. According to Reuters , the ruling deals a blow to the Nevada Resort Association, which had argued that the measure violated state law. A Carson City District Court ruled on April 3 that the proposed referendum,whichwould raise the state’s tax rate on gaming revenue at large casinos to 9.75% from 6.75%, is valid. The ballot measure is backed by the Nevada State Education Association, which is calling for a higher tax rate in order to fund an increase in teacher salaries and programs designed to improve student achievement. Polls have found that a majority of Nevada voters would support such a petition, and the teachers association would have to collect around 58,000 signatures by late May in order to secure a spot on the November ballot. In order for the tax increase to take effect, voters would have to approve the referendumboth on the November 2008 and November 2010 ballots. “While we recognize that the proposed gaming tax increase is far from finalized, we believe that such a tax increase that takes effect in 2011 could put pressure on the US$30 billion in planned capital spending for casino development in Nevada,”Wachovia analyst Brian McGill said in a research note.