There can be little argument that Franc Križanič's strategy for Slovenia's gambling industry is a comprehensive one. The Finance Minister's plan introduces fundamental changes including different taxation as well as the abolition of some ownership restrictions. It states that the gaming industry should further develop in Nova Gorica, Portorož, Sežana-Lipica, Kranjska Gora, Ljubljana, Maribor, Bled and health resorts.
It also proposes new categories of gaming facilities - namely mega entertainment centre, gaming and entertainment centre, grand casino and casino, with the existing gaming salon category continuing. Since analysis has shown that bigger casinos have less profit on slot machines the strategy proposes reducing taxes for bigger casinos, while merging tax and concession duty into single tax. State and local communities will remain the major stakeholders in the gaming industry, with a 51 percent share in all casinos except salons.
The Ministry of Finance is remaining tight-lipped on the matter: "As the ministry in charge of the gaming industry we follow different offers about and interest in potential investment in the industry," says a spokesperson. "According to our legal powers the ministry will present its opinion about any investment when such initiative will be ready for public debate".
HIT still hit
It is clear that HIT, Slovenia's largest gaming company, could do with some investment. It has been deeply in the red for some time, with the first unofficial records showing its loss for 2010 will amount to EUR 6.4 million. The firm is putting an optimistic spin on the results.
"Most of the loss, namely EUR 5.4 million, is a consequence of severances given to 300 employees that left company last year," says company spokesperson Katja Peršolja. "This cost will not burden the company in 2011 and operational costs in 2010 were 22 percent lower than in 2009. We expect to finish this year with minimal profit."
Nonetheless, the firm will clearly be keeping a close key on the gaming strategy. They describe the plan as "appropriate" and agree that the market is jaded. They also argue that the only way to ensure further development of the industry is to attract new guests from distant markets and develop accompanying facilities. One can't help but think that a collaboration with Caesars Entertainment would help on that front.
Source: THE SLOVENIA TIMES
