Inside Asian Gaming

44 INSIDE ASIAN GAMING | August 2013 INTERNATIONAL BRIEFS Bahamas Touts Casino Reforms A senior government official in the Bahamas says liberalization of the Caribbean nation’s casino industry will boost visitation by 25- 30% and create 20,000 new jobs. “For the first time in a long time, there will be a level playing field with respect to other world-class destinations, and it will put the Bahamas in a competitive position going forward,” said Robert Sands, vice president of Governmental and External Affairs. The Gaming Bill 2013 and associated regulations will provide incentives for junket operators tobring inhigh rollers to the country’s Atlantis, Baha Mar, Grand Lucayan and Bimini Bay resorts and will allow the properties to offer sports betting with in-play, proxy and remote wagering. The reforms are among several suggested by the industry, most of which have been incorporated in the legislation. Casinos will continue to be off-limits to local residents, but there may be opportunities to revisit that after the reforms are voted into law, Mr Sands said. “We feel the government is doing the right thing in not letting these elements hold up the bill. We believe there will be opportunities at a later date for them to be reinstated to the bill. What is so important at this point in time is the bill is before Parliament.” Uri Clinton, Baha Mar’s senior vice president and general counsel, noted at a recent tourism conference that Bahamian casino revenues fell by more than 30% over the five years between 2007 and 2011, down from close to US$220 million to around $145 million. Comparing this to Singapore, Macau, Atlantic City, Las Vegas and Biloxi, Miss., over the same period, he said the Bahamas generated the lowest revenue per casino at just under $49 million. Mr Sands notes that the existing Lotteries and Gaming Act has not been updated in 44 years. “We are, in fact, overdue,” he said. Cyprus Plans To License Three Casinos The government of Cyprus has cleared the way for the introduction of three casinos to the Mediteranean island nation that will operate under a single license. The decision resolves a dispute between a number of towns and the cabinet of President Nicos Anastasiades over whether to authorize a single integrated resort or permit several licenses for smaller operations. “We are satisfied with our meeting with the president and the way he is handing the issue of creating a casino,” said Mayor Savvas Vergas of the town of Paphos. “It seems that very soon, the consultant who will set the terms of the procedure for finding an investor will be appointed.” The license will allow the developer to chose the central location and operate branches in two other regions fairly close to the main one. “That is to say that the investor will have the right to create small casinos that can start operations before the major casino,” Mr Vergas explained. Commerce Minister George Lakkotrypis said the government is consulting with foreign experts on crafting regulations and is entertaining expressions of interest from major operators. A government spokesman said the licensing process is being pursued on a “fast-track” basis and will be completed in 12 months Atlantic City Sinking Under Casino Tax Refunds Atlantic City’s shaky finances may have been pushed over the edge by a New Jersey Tax Court ruling awarding Borgata Hotel Casino & Spa, the city’s largest taxpayer and employer, a US$48.8 million property tax refund. Battered by massive declines in gaming revenue since 2006— which has moved several casinos to appeal their tax assessments and win claims that have overvalued them—the city itself could now be facing bankruptcy, a situation that could worsen with two more properties, Atlantic Club and Golden Nugget, announcing that they also plan to seek new assessments. Atlantic City has already issued debt to pay for $200 million in refunds that casinos have won in appeals since 2007. The city’s tax base has decreased 34% over that time as a result, according to the Atlantic County Board of Taxation. The city is appealing the Borgata ruling, which represents 20% of the city’s annual revenue. “If this decision stands, its impact could effectively exempt several other casino properties from local property taxation,” City Solicitor Braun D. Littlefield said. “We maintain that this is an inequitable and grossly unfair position in which to place the taxpayers of this city.” He said the burden could shift to residential and other smaller property taxpayers to make up the projected revenue loss. Borgata officials say that they are willing to pay their fair share but that times have changed and the resort faces the same competitive pressures as everyone else. Joe Lupo, senior vice president of operations at the resort, said, “The city needs to look at its spending, and that’s what the taxpayers should be asking themselves: ‘How is the city spending its dollars and can it do it more efficiently?’” The top 10 property taxpayers in Atlantic City last year were casinos, with the Borgata No. 1 on the list, according to the Board of Taxation. The casinos also provide most of the jobs. The Borgata is the city’s top- grossing casino and employs the largest staff at 5,500. Atlantis Paradise Island, Bahamas Borgata Hotel Casino & Spa