Further memorandum from Accor Casinos
(DGB 114)
SLOT MACHINE
TO GAMING
TABLE RATIOS
There is considerable current debate about the
number of slot machines that may eventually be permitted in British
casinos, and the relationship of these numbers of machines to
the numbers of gaming tables. It may be of interest (if you do
not already have it) to have the information pertaining to the
issuance of slot machines in the European jurisdictions in which
Accor Casinos operates—France, Belgium, Switzerland and
Malta—and also what is known about other countries in Europe.
This, if only because at the Scrutiny Committee hearing that I
attended (15 January), claims were made that Britain would be
the only European country that would practice a method of limitation
on the numbers of slot machines in a casino. Would that this was
the case!
France: Theoretically
there are no restrictions on numbers, with the decision on the
number of machines allowed in a casino being taken on an individual
basis by the Gaming Commission (not to be confused with the British
Gaming Commission), and the approval document signed by the Minister
of the Interior.
In the case of a new casino operation, the initial
casino licence will be for table games operation only. It is to
be noted that this restriction applies to all candidates, whether
they are already casino operators or not. A demand for slot machines
in the casino may only be made after 12 months of operation, with
no guarantee of success and also with no assurance as to the specific
number of slots that may be allowed.
A casino operator may apply to the Gaming Commission
to have the numbers of slot machines increased in his casino and
he will then be called in front of the Commission that sits every
month. There are no specifics as to the refusal of a new slot
allocation, but reasons given (which are not obligatory) tend
to focus on the table gaming, restaurant and entertainment offers.
In the past, some casinos tended to pay lip service to the requirements
for complete offers of the above and could operate a casino with
a single boule table and up to 50 slot machines.
This is no more and the authorities are very insistent
that a casino must have a full gaming, f & b and entertainment
offer that is appropriate to the community it serves. Not only
are slot machines not increased, but the casino licence may also
be put in jeopardy.
A new rule is about to come into force that states
that new casinos will only be authorised if there is a sufficient
market demand for 50 or more slot machines in the casino's catchment
area. This is intended to cut down on the numbers of micro-casinos,
that have no real reason to exist—that is to say, a social,
cultural or community reason. The definition of market demand
is expected to be subjective.
Belgium: This country has recently
introduced slot machines into the eight existing casinos, that
had until now only been permitted to operate with table games.
Now, 10 slots per table are allowed.
The legislated definition of a "table"
is one that is open for at least five hours per day. In theory
this means that if the table is not open for that time period
then the machines may not be opened. In practice, this is really
unworkable, as the machines are opened at the same time as the
tables and, if a table closes down early, then the corresponding
machines are supposed to shut as well. It is acceptable if one
table (say roulette) is shut and another (say blackjack) is opened.
Also, the machines are controlled to theoretically
ensure that a player may not lose more than 70 Euros per hour
of play.
It is unknown how these ratios or the system were
arrived at. The Belgian gaming authorities do not normally discuss
their decisions with the operators.
Switzerland: Casinos
were permitted in Switzerland (to replace the existing "Kursaals")
two years ago. Two categories of casino are permitted; "A"
casinos and "B" casinos.
"A" casinos tend to be sited in major cities
or large catchment areas and are allowed an unlimited number and
variety of table games and an unlimited number of slot machines.
The number of slots is not a ratio of table games.
"B" casinos are smaller and sited in "tourist"
areas or lesser catchment areas. They are permitted 25 machines
per table up to a maximum of 150 machines. "B" casinos
may have as many table games as they want, but may only offer
three different types of games. Most casinos in this category
have six tables and 150 slots, but some "B" casinos
go up to 19 tables.
"A" casinos have a slightly higher tax
rate that "B" casinos, but each canton has the right
to set its own tax rate, so this is not clear-cut.
Malta: Here, the ratio is 10 slot
machines for each gaming table, up to the number of tables on
the licence, not numbers of tables operating. To
take the case of Accor Casinos' operation, the Dragonara Casino,
there are 25 tables licensed, 21 tables in operation and 174 slots
(sufficient for the current market). Theoretically the casino
could operate 250 slots, but this has yet to be tested with the
authorities.
At the time of the drafting of the gaming legislation
in 1998, it was not thought that casino slot machines would make
very much revenue and so little real thought appears to have been
given to the tables/slots ratio. Now slots generate over 50% of
gaming revenue.
Italy: There are
four legal casino operations in Italy, each subject to specific
regional, rather than central, legislation.
However, each casino is allowed a maximum of 500
slot machines. This number has no link with the number of tables.
It has been noted that the casinos interpret the meaning of a
slot machine as the total unit in the case of auto roulette or
horse race machines, thus giving them up to 30 or so terminals
for "one" machine.
Spain, Portugal and Greece:
These countries have no specific legislation governing the number
of machines and thus Portugal and Greece have some of the highest
slot/table ratios in Europe.
We would be pleased to comment further on these or
other related points should you feel it pertinent.
February 2004
| 
