Issue 87
May 7 - 13, 2002
Volume 3
page 2
 

Mexico May Lift Casino Ban

MEXICO CITY - The options are few for anyone who wants to gamble in Mexico. They can go to the horse races or buy a lottery ticket — or enter the shady world of illicit dog fights and underground poker parlors. That may soon change.

Mexican lawmakers are pushing to end a 70-year-old ban on casinos in areas frequented by tourists, arguing that they will attract tourists and foreign investors and create jobs. President Vicente Fox (news - web sites) is also in favor.

The Tourism Commission in the lower house of Congress is putting the finishing touches on a bill that would legalize casinos, possibly at the next legislative session starting in September.

In the 1930s, President Lazaro Cardenas directed Congress to ban gambling, worrying that casinos were dens of organized crime and corruption. But politicians now say that, properly regulated, they are a sound economic gamble.

Casinos in beach resorts, border towns and Mexico City, open to foreigners and Mexicans alike, could generate as much as dlrs 1.3 billion in revenue a year, plus an extra dlrs 1 billion for the government in taxes and licensing fees, according to estimates prepared for Congress by the National Council of Business and Tourism.

But Mexico would need more than dlrs 2 billion in investments to build at least 11 casinos and accompanying hotels, the council says.

Critics say Mexico would have to overcome heavy odds to set up a regulatory system that foreign investors could trust, and make sure that casinos are not used for money laundering.

"That's the big thing that Mexico needs to look at, and pass a statute that tightly controls gaming operations," said James Jones, a former U.S. ambassador to Mexico who now represents U.S. gaming businesses interested in setting up casinos here.

The proposed law calls for a commission to do everything from issuing licenses to investigating finances. "The law is going to have power," said Jaime Mantecon, the legislator leading the casino effort in Congress. "We want to create a law that doesn't allow for any illegal activity whatsoever."

Without tough regulation, says Frank Fahrenkopf, president of the American Gaming Association, "No American licensee is going to take a chance of jeopardizing their license in the States to open a casino in Mexico."

But if such a law is passed, plenty of foreign investors are interested, say representatives of the gambling industry in the United States.

William Wortman, director of the Nevada Palace Hotel and Casino, has proposed

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building a gambling complex in Reynosa, Mexico, across the border from McAllen, Texas. The Oneida Indian Nation has expressed interest in Acapulco and Mazatlan. There has been talk of building a casino complex across the border from Laredo, Texas, although no developer has stepped up to take on the project.

Mexico and Brazil are the only Latin American countries without resort casinos, said William Eadington, director of the Institute for the Study of Gambling and Commercial Gaming at the University of Nevada, Reno.

Last year, more than 19 million foreigners visited the country, spending dlrs 8.4 billion, according to Mexico's tourism ministry.

Plenty of Mexicans also would line up to play cards and the slots if casinos become legal, especially if they are built in urban areas.

Mexico already has a thriving — but illegal — gambling industry offering everything from poker to cock fighting. They are estimated to be earning more than dlrs 1.6 billion a year, and allegedly cheating the government out of more than dlrs 900 million in taxes.


Century Casinos Takes Over Palace Casino Property - CRIPPLE CREEK, CO - Century Casinos, Inc. reported May 1 that the acquisition of the Palace Casino Property in Cripple Creek was finalized. The $1.2 purchase was funded by the Company's line of credit with Wells Fargo Bank.

The property, which includes five city lots, or approximately 15,000 square feet, is located directly across the street from Womacks Casino and Hotel. The Company will convert the majority of the property into additional parking spaces for Womacks. The creation of additional parking space is an important asset in the competitive Cripple Creek market. This project will increase the Company's total number of parking spaces to approximately 440. It is expected that the project will be completed by the end of May.

Century Casinos owns and operates Womacks Casino and Hotel in Cripple Creek, Colorado; owns (65%) and operates The Caledon Casino, Hotel & Spa near Cape Town, South Africa; has a five-year casino concession to operate four casinos aboard the ultra-luxury Silversea cruise vessels; has a five-year casino concession to operate the casino aboard The World of ResidenSea cruise vessel, the world's first ocean going luxury residential resort; and manages the Millennium Casino in the Marriott Hotel in Prague, Czech Republic.

The Eagles

The Eagles will perform at the The Joint at Hard Rock Hotel Casino on June 1.

Price: $305.50, $505.50

Showtime: 8:00 p.m.

Reservations: Reservations Recommended

For more information please call: (800) HRD-ROCK
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