The Communist government allowed state agencies to dip their feet in the sea of capitalism, and Orbis P.P., a tourism organization and major hotel operator in Poland, invited us to discuss the possibility of operating casinos at these agencies.

The besieged communists recognized the potential of gambling for revenue generation but still took a conservative approach. Casinos operate in foreign currency and are open only to foreign guests. Choosing a potential partner also seemed to be dictated by political sensitivity. Rottpoland Airways was in talks with his country’s state-sponsored monopoly Casino Austria to set up a casino company, and Orbis chose Sweden’s Cherry, which the communists considered an almost acceptable face of Western capitalism.

Both foreign companies were obliged to agree in different ways on not repatriating the full amount of their profits. In Cherry’s case, it took a 44% stake, but agreed to reinvest 50% of its distributable profits in the first three years in the form of loans to Orbis and use the money to help renovate the state-owned company’s shoddy hotels. The renovation will see Skanska AB, another Swedish company, take a 5% stake in a new casino venture.

The commitment of the authorities to no game tax and no corporate tax holidays on total sales during this period has made loan/re-investment arrangements easier.

By the summer of 1989, we were putting the finishing touches on the Victoria Intercontinental Hotel, Warsaw’s first casino. But more significant events were happening elsewhere. At the nearby Europiesky Hotel, where we had set up the Crufius Training School while building the Victoria Casino, we were meeting with solidarity officials that day, and at that moment they were excited to tell their colleagues that the Communist Party had resigned from government. It was the first event in Poland since the pre-war era that heralded a fully democratic administration. We were happy to join them in an unrestrained celebration.

Amid the continued euphoria, Victoria Casino opened in September that year with guarantees that it would receive all joint venture contracts and operating permits from the new government. The casino was an immediate success, as was the competing business of Mariette Hotel, which is run by Lot/Austria joint venture Casino Poland.

It launched a junket program to further improve profitability, improve its Polish image as a tourist destination, and comply with its original goal of increasing foreign currency revenues. This, too, was a huge success. It has since expanded to Krakow, Sopo and Skjezzin and opened a slot salon in Grand Hotel Warsaw.

To add to the feeling that we are at the center of a critical time, I excitedly seized on the opportunity to meet new Polish President Lech Wellesa. At a foreign investor forum at Royal Castle in Warsaw, I was able to say that I have already achieved some of the key objectives requested by foreign companies, including investment, transfer of technical know-how, job creation and income growth.

Thus, some thought that Cherry would have a long and profitable relationship in the new democracy once it successfully launched operations and a new market-oriented government came to power.

But the first dangerous move was already happening by the tax office, the enemy of all companies.

The tax office’s original demand that casinos pay a “turnover” tax on gross income was bad enough, but it followed with another big repercussion. In its official interpretation, “total income” meant that all cash or financial instruments were exchanged for chips, effectively “falling.” Our appeal to these demands, based on joint venture agreements, reinvestment programs and licensing terms, was uncompromising. Our request to discuss the definition of “total income” then cited their attitude toward the business, namely, the seizure of dispute amounts from bank accounts, which led to lengthy legal proceedings. Without the threat of this tax and a provision allowing foreign players to convert their winnings back to hard currency, the adoption of Zloty as the official currency halted junket programs or other marketing programs designed to attract foreigners.

A more concerning situation arose. A foreign company called Kings Casino, which had no pedigree in its management and had more than one questionable individual, was licensed to operate without having to comply with the conditions imposed on Cherry and Casino Austria. Specifically, there were no Polish partners. Surprisingly, the first casino was located in Forum Hotel Warsaw: Orbis Hotel. When Cherry complained to a joint venture partner, an unpleasant response came out that in the new market economy, individual managers were free to make any deal that could increase the hotel’s income.

Official protests against the government have given King’s Casino the conviction that it has virtually no legal basis and should be closed. Nevertheless, by September 1990, King’s Casino was miraculously licensed to operate in Warsaw, Poznan and Katowice.

In approving the latter, the Justice Department decided to ignore the fact that Orbis Casino Ltd The Cherry JV had already been licensed to operate in hotels in the same city.

Under the terms of the agreement, the hotel could benefit from renting out areas used by the casino, as well as having 51% of the Polish partner’s revenue and 50% of Cherry’s revenue available for renovation programs. Interestingly, hotel management decided to accept King’s Casino’s undisclosed offer instead.

King’s Casino heard that during the communist era, it founded a new company with S.O.S., an organization related to prominent members of Solidarity. The new company actually went through a transgender period, and is now Queen’s Casino. While in Warsaw, the two moved to a new prestigious place in a cultural venue.

Until finally the Attorney General announced that he would be investigating the case, we made frequent statements to government ministers.

In October 1991, we learned that a court ruling had been made that Queen’s Casino was illegal. Surprisingly, the justification of the ruling did not mention issues of dubious origin or non-compliance with the terms of a joint venture. Instead, a moribund law enacted by unbelieved communists was revived, raising questions about the validity of existing casino companies. This spurred the Education Ministry to enact new laws enacted in an obscene rush by Sejm (congress).

The new legislation generously grants existing companies the right to sell their shares to Polish operators before a set deadline without taking foreign companies into the gambling industry. Great negotiating position!

So the new government was able to effectively accept foreign corporate assets and put them in the hands of a small number of its choices.

Interestingly, Western media and political circles have decided not to view it as typical of the new totalitarian regime rather than the shiny Democrats, as they habitually apply double standards when looking at matters involving sincere tax-paying gambling companies.

So the heirs to this xenophobic bill have enjoyed protected lives for years, but are they now threatened? Probably not.

In the European Community’s official report on Poland’s commitments and requirements to join the European Union, the gambling sector said the law amendment adopted in April 2003 removed any discrimination against foreign investors but introduced discriminatory language requirements for the management of companies participating in those activities, adding that the issue should be addressed. 슬롯사이트

Protectionism, that is, supremacy, will therefore seem to continue to live on. But here, many elderly people, called “European families,” are already violating all the principles of free trade in their policy on gambling.

Ironically, the biggest risk to Poland’s existing license holders’ profits may be a newly elected, right-leaning religious government. But on the other hand, it will still have a huge impact, as the new administration will make investment in the game too unattractive for foreign companies.