Azan, Epstein enter gaming market
Published:Wednesday | November 16, 2011 | 12:00 AM
- To invest J$2b in 25 Sizzling Slots
Sabrina Gordon, Business Reporter
Gassan Azan and business partner Adam Epstein say they will invest J$2 billion in a new chain of gaming shops, the first of which is already open for business in downtown Kingston.
The partners plan to open 25 shops elsewhere in the capital city and across Jamaica within a one-year period under the name Sizzling Slots.
Betting, Gaming and Lotteries Commission (BGLC) confirmed that the Princess Street shop was approved for business and said it was processing applications for two more.
BGLC said it has granted a non-gaming lounge licence to Azan and Epstein, which allows Sizzling Slots to operate up to 19 slot machines at each location. The new gaming operation enters a market that includes established players Supreme Ventures Limited, operators of Acropolis and Coral Cliff, and the smaller Vegas in Lane Plaza and Monte Carlo at the Terra Nova Hotel.
However, players like SVL operate gaming lounges, which are technically no different from gaming shops, except that they are allowed more than 19 machines per location.
Still, assuming the 25 shops are approved and established, Sizzling Slots will have the most extensive network of any player in the market.
The size of the gaming market is unknown, but listed company Supreme Ventures makes more than J$210 million in revenue per quarter - J$636m for nine months ending September 30 - on the gaming/hospitality services segment of the business. The segment is a loss-maker for SVL.
Epstein, the chief operating officer of Sizzling Slots, told Wednesday Business that the shops, each 1,500 square feet in size, would be rolled out mostly in the Corporate Area but will also be dotted along the south coast of Jamaica.
"We want to uplift the areas we go into, give them a better and nicer feel and uplift the entertainment," added Epstein.
The businessman said Sizzling Slots is expected to open at Half-Way Tree in Kingston and Old Harbour in St Catherine this week.
"We are trying to rejuvenate, change the image of the local rum bar," he told Wednesday Business.
The company spent J$10 million to set up the Princess Street shop in commercial space leased from retail chain Bashco, a company owned by Azan. Epstein said all 25 stores will operate from leased space and that the company expects to spend J$10 million on average to set up each locale.
The JS$2b investment, said Epstein, is split J$1.3 billion-J$1.4 billion on slot machines, while the rest is for costs linked to signage, bar, and other set-up costs.
Together, the 25 shops are expected to employ about 200 persons.
The partners say they expect to recover their investment within two to three years of operation.