CR85-p10-Europe CE&CIS2:SJC-Casino Review 25/10/09 13:31 Page 1
internationalcasinoreview
Hard times hit Bulgaria
The gambling industry in Bulgaria has seen its
News
revenues halve in 2009, the industry trade association
BTAMOGI has said, with a knock-on impact on sales
of gaming equipment. 60 slot halls and one casino
have closed completely since January while as many
have suspended their activities. The State Commission
EUROPE CENTRAL, EAST & CIS on Gambling has warned that some operators are no
longer able to pay out winnings.
HIT to implement austerity
plan within weeks
The recession-affected Slovenian operator HIT is to take radical steps to save at least E5m from its
annual budget. Hugh Sorrill reports on how the company is having to convince the trade unions that
the only point of flexibility comes in changing the terms of employment.
doublehit only to be a short-term gain.
SLOVENIA
HIT’s flagship Casino
“The employment con-
Olympic
Perla in Nova Gorica near
tracts of the leaders of the
HIT, the largest casino opera-
the Italian border
business will be the first to to close
tor in Slovenia, has agreed to be renegotiated,” said Maj-
bring forward a radical ‘stabil- nardi. “So, for example, the
18
isation’ plan to cut costs across number of managers who
the whole company, with jobs, will be entitled to a company
venues
employment conditions and car will be restricted to a very
perks the central focus in the few. Other perks and bonuses
drive to save money. will also be restricted and gamesover
The company has seen that will start to happen ESTONIA
gaming revenues drop 12 per inside one or two months.”
cent this year as a result of the The company has identified Olympic Entertainment
recession. The board met on staff costs as the only area of Group, which operates
12 October to agree the broad the business that can be cut. electronic casinos across
sweep of the package and “While our revenues are northern and eastern
must now decide a timetable down, it happens that our Europe, has announced
for implementation by 15 visitor numbers remain rea- that it will close 18
November. sonably stable,” said Majnardi. venues during the third
The company has decided “The recession means that quarter in order to bring
it must cut E5m from its annual people are spending less but its business into line with
costs and the only way it can the cost to the business to the prevailing market
do that is by looking at jobs service them remains the situation.
and wages, it has concluded. same. It’s not like manufactur- The company is
Corporate communica- ing where you can slow or stop closing four venues in its
tions manager Tilen Majnardi production in a recession.” home territory of Estonia,
told International Casino The other major expense is five in Latvia, four in
Review: “Staff are currently tax: the levy on gross gaming Lithuania, four in
working under contracts revenues stands at 18 per cent Romania and one in
devised in the good and opti- in Slovenia, however, there is Poland. That brings to 67
mistic times that we experi- also an additional concession the number of venues
enced from 2000 to 2007. tax that varies depending on that have switched their
Employees only have to work the size of the operation but lights off so far this year,
four days a week and get a which in HIT’s case comes in including 24 that were
minimum two consecutive at the maximum 20 per cent. caught by the sudden
days off a week. They also have Last year the company took termination of the market
very generous break times E206m in revenues and in Ukraine in July.
during their shifts. This leads handed over E105m to the However, it has also been
to a strange situation in which, government in gaming and hit by smoking bans,
while we employ about 1,760 other taxes. legislative changes and
people permanently, because unions have been unhappy week before the board ing with the company: their “The government is strug- the downturn in the
of this system we still need to with the proposed changes meeting, union representa- opening salvo is the demand gling with a budget deficit at economy in almost all the
take on a lot of part-time and have been working tives walked out of informal that any alterations to the moment, so it will not countries it operates in.
workers and students to fill fiercely to strengthen their discussions, leading the man- working conditions be even look at reducing gaming In terms of numbers of
the gaps. If we can sort this hand, including involvement agement to put out a terse imposed on other areas of the taxes,” said Majnardi, “even venues, the company is
out, it means we can cut down of the national media during statement about the unwill- business before they reach though a small reduction now half the size it was a
the number of relief workers initial discussions about the ingness of unions to take part the casino’s front-line would mean that we could year ago when it
and save a lot of money.” company’s problems and how in the negotiations. employees. The unions may reduce the impact of this sta- operated 135 locations.
Not surprisingly, the trade they might be solved. In the The unions are now engag- get their wish but it is likely bilisation plan.” In a statement, the
chief financial officer
Kristi Ojakäär said: “The
decision to make these
Investigation
casino closures is
connected with a
significant decrease of
into land deal
the gaming market during
2009. In the first half of
the year, total gaming
volumes contracted by 56
per cent in Estonia, by 40
loosefoundations investor in the planned
Lake Velence, besides
which the development
per cent in Latvia and by
HUNGARY 250bn-forint (E932m) King
of King City casino
38 per cent in Lithuania
City casino and spa resort on resort is now in doubt compared with the same
The Hungarian State the shore of Europe’s period last year.”
Holding Company (MNV) warmest lake, Lake Velence, The latest round of
has called for an bought farmland in 2007 that plot in the village of Sukoró. the original land purchase needed for the motorway closures means the loss
investigation into a land was then designated for As part of its statutory was made following advice development. The Central of 228 jobs and will bring
deal that was made to compulsory purchase in function, MNV is able to from well-informed sources. Investigative Prosecutor’s a charge to the company
facilitate a casino resort order to build a motorway. authorise the exchange of The national audit office Office is now investigating of about 40.3m kroons
development south west The businessman, Joav appropriate land needed for has said that the transaction an alleged misuse of funds (E2.6m). The company
of Budapest. Blum, then swapped the land national projects. Allegat- is invalid, as only a small over the disputed valuation now employs just over
According to the MNV, an for a state-owned lakeside ions have been made that part of Blum’s farmland was of the land. 2,200 people.
10 November 2009 • europecentraleast&cisnews
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